[2025] Foreign Investment in maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment) in Vietnam

I. Legal Basis:

This article is based on the following legal foundations:

- Specific Commitments on Trade in 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. Scope of Business Activities of Maintenance and repair of equipment services(not including maritime vessels, aircraft or other transport equipment) (CPC 633) for Foreign Investors in Vietnam:

Based on the Specific Commitments Schedule on Trade in Services (GATS), the scope of services related to scientific and technical consulting in Vietnam (CPC 86751, 86752 and 86753) includes the following activities:

633 Repair services of personal and household goods

Exclusions: Automotive repair services are classified in subclass 61120 (Maintenance and repair services of motor vehicles) and 61220 (Maintenance and repair services of motorcycles and snowmobiles).

Maintenance and repair services of office and computing machinery are classified in subclass 84500.

6330 Repair services of personal and household goods

63301 Footwear and leather goods repair services

Specialized repair services of footwear of any material, of luggage, handbags and other articles of leather.

(Goods classified in CPC/292-296.)

63302 Repair services of electrical household appliances

Specialized repair services of electrical household appliances, e.g./refrigerators and freezers, dishwashing machines, washing and drying machines of the household type, domestic electrical cooking and heating equipment, vacuum cleaners, and other small domestic appliances. (Goods classified in CPC 448.)

63303 Watches, clocks, and jewellery repair services

Specialized repair services of watches, clocks and jewellery. (Goods classified in CPC 163, 484.)

63304 Garment and household textile repair services

Specialized repair services of garment and other household textile articles. (Goods classified in CPC 26-28.)

63309 Personal and household goods repair services n.e.c.

Specialized repair services of household articles and equipment, not elsewhere classified, e.g. household furniture, radio and television equipment, articles for lighting and other personal and household goods. (Goods classified in CPC 314-319, 3226, 3719, 372, 3811, 3813-3816, 383, 429, 465, 47.) 

III. Market Access Restrictions for Maintenance and repair of equipment services(not including maritime vessels, aircraft or other transport equipment) (CPC 633) under Vietnam's Specific Commitments on Trade in Services (GATS) of the WTO:

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

- From the date of accession, the establishment of joint ventures is allowed with the foreign party's capital contribution not exceeding 49%.

- Two years after the date of accession, this restriction will be 51%. Two years later, the establishment of 100% foreign-invested enterprises is allowed.

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 establish 100% foreign-owned enterprises.

See more information related to the principles of GATS here.

IV. Foreign Investment Procedures in Vietnam:

In accordance with Articles 21-28 of the Law on Investment 2020, foreign investors can adopt the following investment vehicles:

1) Establishing Economic Organizations:

a) Foreign investors establishing economic organizations must meet the market access conditions for foreign investors specified in Article 9 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) Capital Contributions and Acquisitions:

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) Investment Project Execution:

Direct project implementation.

4) Business Cooperation Contracts (BCCs):

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.

V. Conclusion

The maintenance and repair of equipment sector in Vietnam, distinctly excluding specialized transport like maritime vessels and aircraft, presents a compelling and increasingly lucrative investment landscape for foreign businesses in 2025 and beyond. Driven by Vietnam's robust manufacturing growth and the escalating need for asset longevity and operational efficiency, demand for expert machinery and equipment upkeep will only continue to expand. For foreign enterprises possessing specialized skills, advanced technologies, and a forward-thinking approach, significant opportunities await to contribute to Vietnam's sustainable economic development while achieving strong returns on investment.

If you are considering investment, please contact DB Legal for detailed assistance with investment and business registration procedures in accordance with legal regulations.

 

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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