FDI enterprises Legal procedures to note in the first year in Vietnam

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FDI enterprises Legal procedures to note in the first year in Vietnam

Date: 2025.12.11

1. Post-establishment stage – “Setting the legal foundation”

After receiving the Investment Registration Certificate (IRC) and the Enterprise Registration Certificate (ERC), FDI enterprises must complete the following initial administrative procedures:

Procedure Group	Required Actions	Governing Authority
Tax & Accounting	– Register for tax and digital signature – Open a bank account and notify the Department of Planning & Investment – Register the VAT declaration method (credit or direct) – Print or register electronic invoices	Department of Planning & Investment (DPI) Tax Department / General Department of Taxation
Labor & Social Insurance (SI)	– Sign labor contracts and register for initial SI participation – Submit the first labor usage report (Form 05/PLI) – Register salary scales and payroll system	Department of Labor, Invalids & Social Affairs
Company Seal & Internal Records	– Engrave and register the company seal – Prepare internal regulations and bilingual company charter – Maintain investment records and capital contribution minutes	DPI / Business Registration Office
Specialized Licenses (if applicable)	– Retail business license, logistics license, import-export license, education license, etc.	Relevant specialized authority

2. Operational stage – “Periodic reports and compliance obligations”

During the first year, FDI companies must submit the following mandatory reports:

Report Type	Reporting Frequency	Receiving Authority
Investment Project Implementation Report	Quarterly, Annually	DPI (Form A.I.1, Decree 29/2021/ND-CP)
FDI Enterprise Statistical Report	Quarterly / Annually	Local Statistics Office
Financial Statements	End of fiscal year	Tax Department / DPI
Labor & Social Insurance Reports	Monthly / Quarterly	Department of Labor / SI Authority
Environmental Reports (if applicable)	Annual	Department of Natural Resources & Environment

⚠️ Important notes:

Enterprises must report full capital contribution within 90 days from the IRC issuance date.
For capital contribution in foreign currency, a Direct Investment Capital Account (DICA) must be opened at an authorized bank.
Quarterly investment reports are typically due before the 10th day of the following quarter; annual reports before March 31 of the following year.
Late submissions may result in administrative fines ranging from VND 20–50 million or being classified as “non-compliant” under investment regulations.

3. Year-end stage – “Finalizing audit and Tax bbligations”

Item Completion	Timeline	Notes
Preparation of Financial Statements (FS)	Before March 31 of the following fiscal year	Must comply with Vietnamese Accounting Standards (VAS)
Independent Audit	Mandatory for all FDI companies	In accordance with the Accounting Law 2015
Submission of CIT, PIT, VAT Reports	Quarterly / Annually	Via the electronic tax portal
Investment Finalization Report	Upon project completion or major adjustments	Submitted to the Investment Registration Authority

4. Common risks in the first year

Failure to submit investment reports on time → system warnings on the national foreign investment database.
Failure to open a proper investment capital account → banks may reject capital contribution or profit remittance transactions.
Errors in business lines or business activities → affect future licensing for specialized business sectors.
Lack of understanding of investment tax incentives → risk of missing legitimate benefits.

5. Recommendations for Japanese enterprises

– Establish an internal compliance control system (compliance checklist) in Japanese–Vietnamese.

– Use outsourced back-office services to track reporting deadlines, tax declarations, SI requirements, and regulatory updates.

– Maintain regular communication with the investment authority (IPA / DPI) to stay updated on foreign investment regulations.

– Keep bilingual (Japanese–Vietnamese) documentation for contracts, invoices, and financial statements — enabling faster audits and reconciliations.

Conclusion

The first year is the most critical period for an FDI enterprise in Vietnam. Understanding and complying with legal obligations not only ensures stable operations but also builds a solid foundation for expansion in the coming years.
If your Japanese company or FDI enterprise needs assistance with reporting procedures, accounting, taxation, social insurance, or Back-Office outsourcing services, HelpAll is ready to support you.