[2025] Foreign Investment in Vietnam: Computer & Related Services (CPC 841-849) - The Ultimate Guide

I. Scope of Business Operations for Computer Services and Related Services (CPC 841-845, CPC 849) for Foreign Investors in Vietnam

According to Vietnam's WTO Schedule of Specific Commitments on Trade in Services (GATS), the field of computer services and related services encompasses a diverse range of activities, classified under the following CPC codes:

841. Advisory services related to the installation of computer hardware

8410 84100. Advisory services related to the installation of computer hardware

Services consisting of advising clients on the installation of computer hardware (hardware equipment) and computer networks.

842. Software implementation services

All services which include advisory, development and implementation services of software. The term "software" may be defined as sets of instructions needed to make computers work and communicate. Different programmes may be developed for specific applications (application software) and clients may choose to use ready-made software (canned software), develop specific software according to special requests (customized software) or a combination of both.

8421 84210. Software and system consulting services

General services prior to the development stage of data-processing systems and applications. May cover management services, project planning services, etc. 240

8422 84220. Systems analysis services

Services consisting of analysing the client’s needs and problems, specifying functional characteristics and task grouping. May also cover project management, technical coordination and integration and definition of system architecture.

8423 84230. Systems design services

Design services covering technical solutions relating to methodology, quality assurance, selection of software packages, equipment or new technologies, etc.

8424 84240. Programming services

Programming services covering the implementation stage, e.g. writing and coding programmes, undertaking tests and data set-up.

8425 84250. Systems maintenance services

Maintenance services including advisory and technical support services for software products in use, rewriting or altering existing programmes or systems and updating software and user documentation. May include specialized work such as conversion.

843. Data processing services

8431 84310. Input preparation services

Data recording services such as punching, optical scanning or other methods of data entry.

8432 84320. Data processing and tabulation services

Services such as data processing and data tabulation services, computer time share services and computer calculation services.

8433 84330. Computer time-sharing services

Seems to be identical to service 84320. Only buying computer time, if bought on clients premises also buying telecommunication services. Data processing or data tabulation services may be bought from a service bureau. In both cases the service may be processed on a time-sharing basis. Therefore, no clear distinction is possible between subgroups 84320 and 84330. 241

8439 84390. Other data processing services

Services of managing the total operations of data-processing facilities of a client on a contract basis; computer-room environmental quality management services; services of managing the linking up of computers; computer work flow and work load management services.

844. Database services

8440 84400. Database services

All services which are provided mainly from structured databases via communication networks.

Exclude: Data and message transmission services (e.g., network operating services, value-added network services), which are classified in CPC subclass 7523 (Data and message transmission services). Data collection services including collection of information from databases, which are classified in CPC subclass 96311 (Library services).

845 Maintenance and repair services of office machinery and equipment, including computers

8450 84500. Maintenance and repair services of office machinery and equipment, including computers

Maintenance and repair services of office machinery and equipment, computers and associated equipment.

849. Other computer services

8491 84910. Data preparation services

Data preparation services for others excluding data processing.

8499 84990. Other computer services

Other computer-related services, n.e.c., e.g. training for clients’ staff and other specialized computer services.

II.  Market Access Limitations for Computer Services and Related Services (CPC 841-845, CPC 849) under Vietnam's WTO (GATS) Specific Commitments Schedule

According to Vietnam's Specific Commitments Schedule under the WTO's General Agreement on Trade in Services (GATS), the computer services and related services sector (CPC 841-845, CPC 849) is unrestricted for commercial presence in Vietnam, with the following exception:

(i) Within 2 years from the date of WTO accession, 100% foreign-invested enterprises were only allowed to provide services to foreign-invested enterprises in Vietnam.

(ii) After three years from accession, the establishment of branches was permitted.

Vietnam has been a member of the WTO for more than 10 years, so these market access restrictions have been eliminated, and foreign investors face no market access restrictions in this sector. This implies that Vietnam has broadly opened its market to foreign investors in the listed computer service sub-sectors."

III. Investment Procedures for Foreign Investors in Vietnam

Foreign investors can choose the following investment forms to operate in the computer services sector in Vietnam:

1. Investment in establishing economic organizations:

• Limited Liability Company (LLC): A popular and flexible form, which can be a single-member LLC or a multi-member LLC.
• Joint Stock Company (JSC): Suitable for large-scale projects with the ability to raise capital from multiple investors.
• Representative Offices: Often used to explore the market and promote trade before making large-scale investments.

Procedures:

• Obtaining an Investment Registration Certificate (IRC): For projects with foreign investment capital.
• Obtaining an Enterprise Registration Certificate (ERC): After obtaining the IRC, proceed with enterprise establishment registration.

2. Investment in capital contribution, share purchase, capital contribution purchase:

• Foreign investors can contribute capital to established companies in Vietnam or purchase shares/capital contributions to participate in computer service business activities.

Procedures:

• Registration of capital contribution, share purchase, capital contribution purchase: Carry out registration procedures at the Department of Planning and Investment.

3. Implementation of investment projects:

• Investors can directly invest in implementing computer service projects, such as building data centers, developing software, etc.

Procedures:

• Obtaining an Investment Registration Certificate (IRC): For new investment projects.
• Implementing other procedures related to the project: Such as procedures related to land, construction, environment, etc.

4. Investment in the form of a BCC contract (Business Cooperation Contract):

• A form of investment cooperation between a foreign investor and a Vietnamese partner based on a contract, without establishing a new legal entity.

Procedures:

• Registration of BCC contract: Carry out contract registration procedures at the investment registration agency.

5. New investment forms, types of economic organizations as prescribed by the Government:

• Vietnam is always open and creates conditions for new forms of investment and new types of economic organizations in line with global development trends. Investors should follow the latest legal regulations to seize opportunities.

IV. Important Notes for Foreign Investors

To invest successfully in the computer services sector in Vietnam, foreign investors should pay particular attention to:

• Thorough Market Research: Understand market needs, competitors, and technology trends in Vietnam.
• Understanding Investment and Business Laws: Master legal regulations related to foreign investment, computer services, taxes, labor, etc.
• Choosing the Appropriate Investment Form: Carefully consider investment forms and types of economic organizations to choose the optimal option.
• Compliance with Network Security and Information Security Regulations: This is a key factor to ensure sustainable business operations and legal compliance.
• Building a Quality Human Resources Team: Vietnam has a young and dynamic workforce in the information technology sector, but recruiting and training a high-quality team remains important.
• Cooperation with Local Partners: Seek reputable Vietnamese partners to leverage their network advantages, market experience, and legal support.

V. Conclusion:

The computer services and related services sector in Vietnam is opening up attractive investment opportunities for foreign investors. With a potential market, open policies, and a young workforce, Vietnam promises to be an ideal destination for foreign investors to develop their computer service businesses. However, to succeed, mastering legal regulations, understanding the market, and having a well-structured investment strategy are crucial.

 

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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