[2025 Update] Foreign Investment in Technical Analysis and Testing Services in Vietnam (CPC 8676 excluding Inspection and Certification of Transportation Vehicles)

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 Technical Analysis and Testing Services in Vietnam (CPC 8676, Excluding Inspection and Certification of Transportation Vehicles) for Foreign Investors in Vietnam:

Based on the Specific Commitments on Trade in Services (GATS), the scope of technical analysis and testing services in Vietnam (CPC 8676 excluding the inspection and certification of transportation vehicles) includes the following activities:

8676 Technical testing and analysis services
86761 Composition and purity testing and analysis services
Testing and analysis services of the chemical and biological properties of materials such as air, water, waste (municipal and industrial), fuels, metal, soil, minerals, food and chemicals. Included are testing and analysis services in related scientific fields such as microbiology, biochemistry, bacteriology, etc. Excluded are medical and dental testing services.

86762 Testing and analysis services of physical properties

Testing and analysis services of physical properties such as strength, ductility, electrical conductivity and radioactivity of materials such as metal, plastics, textiles, woods, glass, concrete and other materials. Included are tests for tension, hardness, impact resistance, fatigue resistance, and high-temperature effects.

86763 Testing and analysis services of integrated mechanical and electrical systems

Testing and analysis services of the mechanical and electrical characteristics of complete machinery, motors, automobiles, tools, appliances, communication equipment and other equipment incorporating mechanical and electrical components. The results of the testing and analysis generally take the form of an assessment of the performance and behavioural characteristics of the object tested. Tests may be performed using models or mock-ups of ships, aircraft, dams, etc.

86764 Technical inspection services

Testing and analysis services of a technical or scientific nature which do not alter or affect the object being tested. Included are radiographic, magnetic, and ultrasonic testing of machine parts and structures conducted in order to identify defects. These tests are often conducted on site. Excluded are inspection services of a non-technical or scientific nature, such as visual inspection of buildings, machines, etc.

86769 Other technical testing and analysis services

All other technical testing and analysis services not elsewhere classified.

III. Market Access Limitations for Technical Analysis and Testing Services in Vietnam (CPC 8676, excluding inspection and certification of transportation vehicles) 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: 

where Viet Nam allows private suppliers access to a sector previously closed to private-sector competition on the grounds that the service had been supplied in the exercise of governmental authority, joint ventures to supply such service shall be allowed without limitation on foreign ownership 3 years after such access to private sector competition is allowed.

Five years after those private sector services suppliers have been granted such access: none.

Access to certain geographic areas may be restricted for national security reasons.

Further information on GATS principles can be accessed 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:

The technical analysis and testing services sector within Vietnam (CPC 8676), particularly excluding the realm of transportation vehicle inspection and certification, is emerging as a sector brimming with significant investment potential for foreign businesses in 2025 and beyond. As Vietnam increasingly emphasizes product quality, adherence to technical standards, and export competitiveness, the demand for specialized and reliable testing services is poised for continued and robust growth. While foreign investors must remain mindful of the specified scope of operations within CPC 8676, the door to investment remains wide open for those with the expertise, technology, and capacity to capitalize on this dynamic market and contribute to the advancement of Vietnam's industries in this new era of global trade.

For investment inquiries, please consult DB Legal for registration and strategy assistance.

 

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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