Guidelines for Establishing a Branch of a Korean Company in Vietnam 2025

With rapid economic growth, an increasingly favorable business environment, and the government’s open-door policy toward foreign investment, Vietnam has become an ideal destination for foreign companies, particularly from South Korea. What steps, then, are required to establish a branch of a South Korean company in Vietnam? Details are outlined in the following article.

Conditions for Establishing a South Korean Company’s Branch in Vietnam

A company wishing to open a branch in Vietnam must satisfy the following conditions:

The company must have operated in South Korea for at least five years from the date of its establishment or registration;

In cases where the foreign trader’s business registration certificate or equivalent document specifies an operating duration, there must be at least one year remaining from the date of application;

The branch’s business activities must be in line with Vietnam’s market access commitments as stipulated in international agreements to which Vietnam is a party, and must align with the foreign trader’s business sectors;

If the branch’s intended activities do not comply with Vietnam’s commitments, the establishment of the branch must be approved by the relevant sectoral ministry.

Application Dossier for Establishing a Branch of a South Korean Company in Vietnam

The application dossier for the establishment of a branch in Vietnam must include:

An application form for the Branch Establishment License, as prescribed by the Ministry of Industry and Trade, signed by the authorized representative of the foreign trader;

A copy of the business registration certificate or an equivalent document of the foreign trader;

A document from the foreign trader appointing the head of the branch;

A copy of the audited financial statement, a document confirming tax or financial obligations for the most recent financial year, or an equivalent document issued by the competent authority or organization in the country where the foreign trader is established, confirming the foreign trader’s existence and activities during the most recent financial year;

A copy of the branch’s operational charter;

A copy of the passport, identity card, or citizen identification card (for Vietnamese nationals) or passport (for foreign nationals) of the branch head;

Documentation concerning the proposed location of the branch’s headquarters, including:

A copy of a memorandum of understanding, lease agreement, or document proving the foreign trader’s right to exploit or use the premises for the branch’s headquarters;

A copy of the documentation on the proposed branch location as stipulated in Article 28 of Decree 07/2016/ND-CP and other relevant legal provisions.

Procedures for Issuing a License to Establish a Branch of a South Korean Company in Vietnam

The foreign trader may submit the application dossier directly, by mail, or online (if eligible) to the licensing authority.

Within three working days from receipt of the dossier, the licensing authority will review and request additional documents if the dossier is incomplete or invalid. This request for supplementary documents will only be made once throughout the processing of the dossier.

Except as provided in Clause 4, Article 13 of Decree 07/2016/ND-CP, within seven working days from receipt of a complete and valid dossier, the licensing authority will either issue or deny the Branch Establishment License to the foreign trader. If denied, a written notice specifying the reasons for refusal must be provided.

In cases specified in Clause 5, Article 8 of Decree 07/2016/ND-CP or where the establishment of a branch is not regulated by sectoral legal documents, the licensing authority shall seek the opinion of the relevant sectoral ministry within three working days from receipt of a complete and valid dossier. Within five working days of receiving the licensing authority’s document, the sectoral ministry must issue a written opinion agreeing or disagreeing with the branch establishment. Within five working days of receiving the sectoral ministry’s opinion, the licensing authority shall either issue or deny the Branch Establishment License to the foreign trader. If denied, a written notice specifying the reasons for refusal must be provided.

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