Can foreign-invested companies (FDI companies) gain access to operate in the field of market research services?

What are the critical legal process and necessary documents to carry out the procedures for investment registration in this business line?

These are questions that quite are very common for foreign investors seeking to enter the market within this sphere.

The following article will provide the basic provisions for the above issue and why seeking advice early on in the process will assist you greatly.

Forms of investment and business in market research services (within Vietnam)

When joining the World Trade Organization (WTO) Vietnam committed to: providing foreign organisations the ability to establish a joint venture in which the capital contribution of the foreign side cannot exceed 51%. However, from January 1, 2009, the establishment of enterprises with 100% foreign capital was further prohibited.

Notably Vietnamese law does not stipulate investment conditions applicable to foreign investors.

Thus, foreign investors are allowed to establish 100% foreign-invested companies providing market research services (CPC 864) with the notable exception for public opinion polling services (CPC 86402), being excluded.

Scope of market research services

Market research services are research and investigative activities, including:

  • Investigative services designed to gather information about the prospects and performance of an organization’s products in the market;
  • Market analysis (size and other characteristics of the market) and analysis of customer attitudes and preferences, which may use interviews, phone calls and mail surveys for clients. Personal data, historical data;
  • Economic and social information collection services that are not tied to commercialized products such as industry analysis, econometric modeling, demographic analysis.

Steps required to Fullfill Registration

Step 1: Complete the procedure for applying for an Investment Registration Certificate for an investment project; and

Step 2: Complete the procedure for applying for an Enterprise Registration Certificate.

Dossier and documents required for the Investment Registration Certificate:

Dossier to be drafted should provide:

  • Investment project implementation proposal;
  • Proposing investment project;
  • Statement of Investor’s financial capacity;
  • Investor’s decision (for institutional investor);
  • Power of attorney in case of authorizing a third party to represent investment registration procedures;

Documents provided by the Investor:

  • Certified copy of the land lease contract or the agreement in principle of the land lease contract for project implementation.
  • Certified copy of the Investment/Enterprise Registration Certificate of the lessor;
  • Certified copy of the Construction Permit;
  • Certified copy of the certificate of land use right;

Documents specific to a foreign investment organization:

  • Consular legalization Decision, establishment license of foreign organization;
  • Consular legalization of the Investor’s last 2 years audited financial statement or Confirmation of bank account balance of the foreign investor to prove financial capacity;
  • Certified copy of the passport of the legal representative and the representative managing the contributed capital of the foreign investor;

Documents specific to foreign individual investors:

  • Certified copy of the passport of investor;
  • Consular legalization of confirmation of bank account balance of the foreign investor to prove financial capacity;

Dossier and documents to apply for the Enterprise Registration Certificate

Dossier to be drafted:

  • Enterprise registration application form;
  • Charter of the Company;
  • List of members (for limited liability companies with two or more members); List of founding shareholders (for Joint Stock Company);
  • Investor’s decision (for institutional investor);
  • List of authorized representatives (for institutional investor);
  • Power of attorney in case of authorizing a third party to represent the enterprise registration procedure;

Documents provided by the Investor:

  • Certified copy of the Investment Registration Certificate; Certified copy of the citizen’s identity card or passport of the legal representative of the company to be established;

Documents specific to institutional investors:

  • Consular legalization Decision, establishment license of foreign organizations and enterprises; Certified copy of the passport of the legal representative and the representative managing the contributed capital of the foreign investor.

Documents for investors being foreign individuals:

  • A certified copy of the passport of a member/capital contributing shareholder to establish an enterprise being a foreign investor;

The above are the contents of analysis related to activities of foreign invested in the field of market research services. In order to ensure correct and sufficient understanding and exercise of rights and obligations in accordance with the law, do not forget to follow and update many other useful information on our website. Please contact us for more detailed instructions: letran@corporatecounsels.vn