[2025] Investing in Urban Planning & Landscape Architectural Services (CPC 8674) in Vietnam: A Detailed Guide

In the context of rapid urbanization in Vietnam, the demand for methodical urban planning and high-quality landscape architectural services is increasing. This opens up attractive investment opportunities for foreign investors in the field of Urban planning and landscape architectural services (CPC 8674). This article will provide a detailed guide to investing in this high-potential service sector in Vietnam.

This article, compiled by DB Legal's team of experts, offers a comprehensive and in-depth overview of the legal aspects, market insights, and investment opportunities within the CPC 8674 service sector in Vietnam, based on current regulations and Vietnam's international commitments.

I. Legal Basis

• Vietnam's Specific Commitments on Trade in Services (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 business activities for foreign investors in Vietnam for urban planning and landscape architectural services (CPC 8674)?

Urban planning and landscape architectural services, classified under the code CPC 8674, play a crucial role in building and developing modern, sustainable, and livable cities. According to Vietnam's Specific Commitments on Trade in Services (GATS), Investing in Urban planning and landscape architectural services (CPC 8674) in Vietnam includes the following:

Urban planning and landscape architectural services (CPC 8674)

86741. Urban planning services

Development services of programme regarding land use, site selection, control and utilization, road systems and servicing of land with a view to creating and maintaining systematic, coordinated urban development.

86742. Landscape architectural services

Plan and design services for the aesthetic landscaping of parks, commercial and residential land, etc. This implies preparing site plans, working drawings, specifications and cost estimates for land development, showing ground contours, vegetation to be planted, and facilities such as walks, fences and parking areas. Also included are inspection services of the work during construction.

III. Market Access Limitations for Urban Planning and Landscape Architectural Services (CPC 8674) according to Vietnam's WTO (GATS) Schedule of Specific Commitments

Regarding Mode of supply (3) Commercial presence, it is unbound, except for:

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

(ii) Foreign enterprises must be legal entities of a WTO Member.

Accordingly, foreign investors are permitted to invest in establishing 100% foreign-invested enterprises in Vietnam for Urban planning and landscape architectural services (CPC 8674), except for meeting the two conditions mentioned above. Vietnam acceded to the WTO in 2007. Therefore, the requirement that foreign-invested enterprises only provide services to foreign-invested enterprises in Vietnam has been removed.

See more about GATS principles here.

IV. Investment Procedures for Foreign Investors in Vietnam

According to regulations from Article 21 to Article 28 of the Law on Investment 2020 regarding investment forms in Vietnam, including the following:

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

1. Investment in establishing economic organizations:

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

b) Before establishing an economic organization, a foreign investor must have an investment project and carry out procedures for applying for and adjusting an Investment Registration Certificate, except for cases of establishing small and medium-sized start-up enterprises and start-up investment funds according to the law on support for small and medium-sized enterprises. From the date of being granted the Enterprise Registration Certificate or other papers of equivalent legal validity, the economic organization established by the foreign investor is the investor implementing the investment project according to the provisions of the Investment Registration Certificate.

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

The capital contribution, share purchase, and capital contribution purchase of foreign investors in economic organizations must meet the following regulations and conditions:

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

b) Ensuring national defense and security according to the provisions of this Law;

c) Provisions of land law on conditions for receiving land use rights, conditions for land use in islands, communes, wards, border towns, and coastal communes, wards, and towns.

3. Implementation of investment projects:

Foreign investors conduct business activities through implementing investment projects in Vietnam.

4. Investment in the form of BCC contracts.

- BCC contracts signed between domestic investors shall be implemented in accordance with civil laws. - BCC contracts signed between domestic investors and foreign investors or between foreign investors shall carry out procedures for Investment Registration Certificates in accordance with Article 38 of the Law on Investment. - Parties participating in the BCC contract shall establish a coordination board to implement the BCC contract. Functions, duties, and powers of the coordination board shall be agreed upon by the parties.

5. Other forms of investment include new types of economic organizations as prescribed by the government.

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

V. Opportunities and Market Potential for Urban Planning and Landscape Architectural Services in Vietnam

Vietnam is undergoing rapid urbanization, leading to a significant demand for modern, sustainable urban planning and high-quality landscape architecture. Investing in this sector in Vietnam offers numerous attractive opportunities:

• Large Market Demand: Rapid urbanization and the development of new urban areas, industrial parks, and tourist areas... create huge demand for urban planning and landscape architectural services.
• Government Incentives: The Vietnamese government encourages investment in urban and infrastructure development, creating favorable conditions for investors in this sector.
• Economic Growth and Income: Vietnam's economy is growing steadily, and people's incomes are rising, leading to a demand for higher quality, aesthetic, and comfortable living spaces.
• Green and Sustainable Living Trends: People are increasingly concerned about the quality of their living environment, promoting the demand for green urban planning, and landscape architecture that is harmonious with nature and sustainable.

VI. Important Notes for Foreign Investors

To successfully invest in urban planning and landscape architectural services in Vietnam, foreign investors need to pay attention to the following issues:

• Thoroughly Understand Laws and Regulations: Master Vietnamese legal regulations related to investment, planning, construction, land, and other relevant fields.

• Market and Competitor Research: Understand market demand and development trends and analyze competitors to develop appropriate business strategies.
• Seek Local Partners: Cooperate with local businesses and organizations with experience and market understanding to support the investment process and project implementation.
• Focus on Cultural and Language Factors: Understand Vietnamese business culture and focus on effective communication and building good relationships with local partners and customers.
• Ensure Service Quality and Brand Reputation: Build a reputable brand and provide high-quality services to create a competitive advantage and sustainable development in the market.

VII. Conclusion

Urban planning and landscape architectural services (CPC 8674) are a high-potential investment sector in Vietnam, promising attractive returns for foreign investors. However, to succeed, investors need to equip themselves with solid legal knowledge, thorough market research, and appropriate business strategies. DB Legal is always ready to accompany and support foreign investors in exploring and exploiting investment opportunities in this high-potential service sector in Vietnam. Please contact us today for in-depth consultation and comprehensive legal support.

 

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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