Foreign Investment in Vietnam in Architectural Services (CPC 8671)

I. Legal Basis:

• Vietnam's WTO Schedule of 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. Scope of Business Activities of Architectural Services (CPC 8671) for Foreign Investors in Vietnam:

The scope of business activities for architectural services (CPC 8671) according to Vietnam's WTO Schedule of Specific Commitments on Trade in Services (GATS) upon accession to the WTO includes:

8671. Architectural Services in Vietnam

• 86711. Pre-design Architectural Consultancy Services:

Support, consulting, and recommendations on architectural and related matters, including services such as conducting preliminary studies to address issues such as overall area intent, building purpose, climate and environmental concerns, fill rate requirements, cost constraints, site selection analysis, design and construction schedules, and related matters affecting the nature of the design and construction of the project. The provision of these services does not necessarily have to be related to a new construction project. For example, this could include consulting services related to means of implementing maintenance, improvement, restoration, and renovation of buildings or assessing the value and quality of buildings or advising on any other architectural matters.  

• 86712. Architectural Design Services:

Architectural design services for buildings and other structures. Design services may include one or more of the following activities: Chart design services, including identifying with the client the main features of the project, determining content, space requirements, budget constraints, and timetables; and preparing sketches of floor plans, site plans, and peripheral views; design development services, including more accurate illustrations of the design concept in terms of floor plans, models, materials to be used, structural systems, electrical mechanics, and possible construction costs; final design services, including drawings and specifications in sufficient detail for bidding and construction and providing expert advice to clients at the time of calling for and accepting contractors.

• 86713. Contract Management Services:

Consulting and technical assistance services to clients during the construction phase to ensure that the structure is installed in accordance with the final drawings and designs. These services include office and field services, such as construction work surveys, preparation of progress reports, issuance of payment confirmations to contractors, guidance to clients and contractors in interpreting contract documents, and any advice on technical questions that may arise during construction.  

All other services requiring the skills of an architect such as preparing promotional materials and presentations, preparing construction drawings, representing the construction activity during construction, providing manuals, etc.  

III. Market Access Restrictions for Architectural Services (CPC 8671) under Vietnam's WTO Schedule of Specific Commitments on Trade in Services (GATS):

The method of supply (3) commercial presence is unrestricted, 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 allowed to invest in establishing 100% foreign-invested enterprises in Vietnam for architectural services (CPC 8671), except that they must meet the 2 conditions mentioned above. Vietnam joined the WTO in 2007, so the requirement that foreign-invested enterprises only provide services to foreign-invested enterprises in Vietnam has been removed.  

See more related content on the principles of GATS here 

IV. Investment Procedures for Foreign Investors in Vietnam:

According to the provisions of Articles 21 to 28 of the Law on Investment 2020 on forms of investment in Vietnam, the following applies:

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

1. Investment in Establishing an Economic Organization:

a) Foreign investors establishing an economic organization 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, carry out procedures for issuance and adjustment of the Investment Registration Certificate, except for the establishment of innovative start-up small and medium enterprises and innovative start-up investment funds as prescribed by law on support for small and medium enterprises. 

From the date of issuance of the Business Registration Certificate or other equivalent legal document, the economic organization established by the foreign investor is the investor implementing the investment project as prescribed in the Investment Registration Certificate.  

2. Investment in Contributing Capital, Purchasing Shares, or Purchasing Capital Contributions:

Foreign investors contributing capital, purchasing shares, or purchasing capital contributions of an economic organization 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 as prescribed by this Law.

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

3. Implementation of Investment Projects:

Foreign investors conduct business through the implementation of investment projects in Vietnam.

4. Investment in the Form of BCC Contracts:

• BCC contracts signed between domestic investors are implemented in accordance with the provisions of civil law. 
• BCC contracts signed between domestic investors and foreign investors or between foreign investors carry out procedures for issuance of the Investment Registration Certificate as prescribed in Article 38 of the Law on Investment.  
• The parties participating in the BCC contract establish a coordinating committee to implement the BCC contract. The functions, tasks, and powers of the coordinating committee are agreed upon by the parties.  

5. New Investment Forms and Types of Economic Organizations as Prescribed by the Government:

Foreign investors make investments in the form of new economic organizations as prescribed by the government.  

 

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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