[2025] Foreign Investment Opportunities in Vietnam's Market Research Services (CPC 864, Excluding 86402)

I. Legal Framework:

This analysis is grounded in the following key legal instruments:

- The WTO General Agreement on Trade in Services (GATS) Specific Commitments;

- 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 Market Research Service Activities (CPC 864, Excluding 86402) for Foreign Investors in Vietnam:

In accordance with the GATS Specific Commitments, the permissible scope of market research service activities (CPC 864, excluding 86402) in Vietnam encompasses:

864 8640. Market research and public opinion polling services.

86401 Market research services:

This includes investigative services designed to gather intelligence on the market potential and performance of an organization's products. Such services involve market analysis (size, characteristics) and consumer behavior studies, utilizing methodologies like interviews, telephone surveys, mail questionnaires, and historical data analysis. Furthermore, it covers the collection of socioeconomic data, such as industry analysis, econometric modeling, and demographic studies, that are not directly related to commercialized products.

Exclusion: Public opinion polling services, as categorized under subsection 86402.

III. Market Access Limitations for Market Research Services (CPC 864, Excluding 86402) under Vietnam's GATS Commitments:

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

- Upon accession, joint ventures were permitted, with foreign capital limited to a maximum of 51% of the legal capital.

- As of January 1, 2009, 100% foreign-owned enterprises are allowed.

Having acceded to the WTO in 2007, Vietnam has since eliminated the capital contribution restrictions for foreign investors, enabling the establishment of wholly foreign-owned entities.

Further information on GATS principles can be found here.

IV. Investment and Business Procedures for Foreign Investors in Vietnam:

According to Articles 21 to 28 of the Law on Investment 2020, foreign investors may pursue the following investment modalities in Vietnam:

1. Establishment of Economic Organizations:

a) Foreign investors must adhere to the market access criteria stipulated in Article 9 of the Law on Investment.

b) Prior to establishing an economic organization, an investment project and Investment Registration Certificate are required, except for innovative startup SMEs and venture capital funds.

Once the Enterprise Registration Certificate is obtained, the foreign-owned economic entity assumes the role of investor, executing the project as specified in the Investment Registration Certificate.

2. Capital Contributions, Share Acquisitions, and Equity Purchases:

These activities must comply with:

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

b) National defense and security regulations.

c) Land law provisions regarding land use rights and land use in sensitive areas.

3. Investment Project Implementation:

Direct implementation of investment projects.

4. Business Cooperation Contracts (BCC):

- Domestic BCCs are governed by civil law.

- Cross-border BCCs require Investment Registration Certificates.

- BCC parties establish a coordination board.

5. Alternative Investment Structures:

As prescribed by the Government.

V. Conclusion and Investor Guidance:

Vietnam's open WTO commitments and streamlined investment procedures present a compelling opportunity for foreign investors in the market research sector (CPC 864, excluding 86402). Prospective investors are advised to engage with the local Department of Finance or consult with legal experts, such as DB Legal, for detailed guidance on registration and business strategy.

 

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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