Do Foreign Investors Need a Local Partner in Vietnam?

A common question among international entrepreneurs is whether foreign investors need a local partner in Vietnam. The short answer is: not always. Vietnam allows foreign investors to establish businesses with 100% foreign ownership in many sectors, but there are important exceptions depending on the industry and business activity.

100% Foreign Ownership Is Allowed in Many Sectors

Under Vietnam’s investment laws, foreign investors can fully own a company in a wide range of industries, including:

• Manufacturing and export-oriented businesses
• IT and software development
• Consulting and professional services (subject to conditions)
• E-commerce and trading (with certain licensing requirements)

In these cases, investors can establish a wholly foreign-owned enterprise (WFOE) without needing a Vietnamese partner.

When a Local Partner May Be Required

Despite this flexibility, some sectors are classified as conditional or restricted for foreign investment. In these industries, foreign ownership may be limited, or a local partner may be required. Examples include:

• Certain logistics and transportation services
• Advertising and media-related activities
• Education and training services
• Distribution of specific goods

The exact requirements vary depending on Vietnam’s commitments under international agreements and domestic regulations.

Strategic Reasons to Partner Locally

Even when not legally required, some foreign investors choose to work with a local partner to:

• Navigate regulatory procedures more efficiently
• Access local market knowledge and networks
• Facilitate licensing and operational setup

A local partner can also be valuable in industries where relationships and local experience are critical.

Professional Guidance

Because Vietnam’s investment framework can be complex, many businesses work with experienced corporate service providers such as Offshore Company Corp, which can help assess whether a local partner is required and guide investors through licensing, company formation, and compliance procedures.

Disclaimer: This content is provided for general informational purposes only and does not constitute legal, tax, or investment advice. Foreign investment regulations and ownership restrictions in Vietnam may change over time and vary by industry.