[2025] Can Foreign-Invested Enterprises Engage in Advertising Services in Vietnam?

I. Legal Basis:

This article is based on the following legal bases:

- Specific Commitments on Trade and Services WTO (GATS);

- Law on Investment No. 61/2020/QH14 dated June 17, 2020;

- Law on Enterprises No. 59/2020/QH14 dated June 17, 2020;

II. What is the scope of advertising service business activities (CPC 871, excluding tobacco advertising) for foreign investors in Vietnam?

Based on the Specific Commitments on Trade and Services (GATS), the scope of advertising service business activities (CPC 871, excluding tobacco advertising) in Vietnam is as follows:

"871 Advertising services
8711 87110 Sale or leasing services of advertising space or time
Services provided in soliciting advertising space or time for newspapers, other periodicals, and television stations.
8712 87120 Planning, creating and placement services of advertising
Planning, creating and placement services of advertisements to be displayed through the advertising media.
8719 87190 Other advertising services
Other advertising services not elsewhere classified, including outdoor and aerial advertising services and delivery services of samples and other advertising material"

III. What are the market access restrictions for advertising services (CPC 871, excluding tobacco advertising) according to Vietnam's Specific Commitments on Trade and Services WTO (GATS)?

Regarding the establishment of a commercial presence, there are no restrictions, except:

- From the date of accession, foreign service providers that have established joint ventures or entered into business cooperation contracts with Vietnamese partners are allowed to conduct advertising services.

- From the date of accession, the establishment of joint ventures is allowed, in which the foreign party's capital contribution must not exceed 51% of the joint venture's legal capital.

- From January 1, 2009, there are no restrictions on the foreign party's capital contribution ratio in the joint venture.

Vietnam joined the WTO in 2007, therefore, the requirement to restrict the capital contribution ratio of foreign investors in joint ventures has been removed. Foreign investors are allowed to participate in establishing joint ventures with unrestricted capital contribution ratios.

See more information related to the principles of GATS here.

IV. What are the investment and business procedures for foreign investors in Vietnam?

According to the provisions from Article 21 to Article 28 of the Law on Investment 2020, the forms of investment in Vietnam include the following:

Foreign investors can choose the following forms of investment to conduct business in Vietnam:

1) Investment in establishing economic organizations:

a) Foreign investors establishing economic organizations must meet the market access conditions for foreign investors specified in Article 9 1 of this Law;  

b) Before establishing an economic organization, foreign investors must have an investment project and carry out the procedures for issuing and adjusting the Investment Registration Certificate, except for the establishment of innovative startup small and medium-sized enterprises and innovative startup investment funds in accordance with the law on supporting small and medium-sized enterprises.

From the date of issuance of the Enterprise Registration Certificate or other legally equivalent documents, the economic organization established by the foreign investor is the investor implementing the investment project as specified in the Investment Registration Certificate.

2. Investment in capital contribution, share purchase, and capital contribution portion purchase.

The foreign investor's capital contribution, share purchase, and capital contribution portion purchase in economic organizations must comply with the following regulations and conditions:

a) Market access conditions for foreign investors specified in Article 9 of the Investment Law.

b) Ensuring national defense and security as prescribed by this Law;

c) Land law provisions on conditions for receiving land use rights and conditions for land use on islands, border communes, wards, and towns, and coastal communes, wards, and towns.

3) Implementation of investment projects:

Foreign investors conduct business through the implementation of investment projects in Vietnam.

4) Investment in the form of a BCC contract.

- BCC contracts signed between domestic investors are implemented in accordance with civil law.

- BCC contracts signed between domestic investors and foreign investors or between foreign investors are subject to the procedures for issuing Investment Registration Certificates as specified in Article 38 of the Investment Law.

- Parties participating in the BCC contract establish a coordination board to implement the BCC contract. The functions, tasks, and powers of the coordination board are agreed upon by the parties.

5) New forms of investment and types of economic organizations as prescribed by the Government.

Foreign investors make investments according to new types of economic organizations as prescribed by the government.

 

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

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