[2025] Foreign Investment in Related Scientific and Technical Consulting Services in Vietnam (CPC 86751, 86752, and 86753)

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 Related Scientific and Technical Consulting Services (CPC 86751, 86752, and 86753) 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:

8675 Related scientific and technical consulting services

86751 Geological, geophysical and other scientific prospecting services

Geological, geophysical, geochemical and other scientific consulting services as they relate to the location of mineral deposits, oil and gas and groundwater by studying the properties of the earth and rock formations and structures. Included here are the services of analysing the results of subsurface surveys, the study of earth sample and core, and assistance and advice in developing and extracting mineral resources.

86752 Subsurface surveying services

Gathering services of information on subsurface earth formations by different methods, including seismographic, gravimetric, magnetometric and other subsurface surveying methods.

86753 Surface surveying services

Gathering services of information on the shape, position and/or boundaries of a portion of the earth's surface by different methods, including transit, photogrammetric and hydrographic surveying, for the purpose of preparing maps.

III. Market Access Restrictions for Technical Scientific Consulting Services in Vietnam (limited to CPC 86751, 86752, and 86753) for Foreign Investors 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 and Investor Guidance:

Technical scientific consulting services, particularly in the realms of geology, geophysics, and surveying (CPC 86751, 86752, 86753), are increasingly solidifying their position as an attractive investment destination for foreign companies in Vietnam in 2025 and beyond. With the escalating demand for efficient and sustainable resource exploration and extraction, alongside the robust growth of the construction and infrastructure sectors, these specialized services will continue to play a pivotal role. Expansive investment opportunities await foreign investors who possess technical expertise, cutting-edge technology, and a strategic vision, ready to unlock the potential and contribute to Vietnam's economic and technical advancement.

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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