Which industries allow foreigners to own 100% of a company in Vietnam?

Over the years, Vietnam’s investment environment has become increasingly open and has strongly attracted international investors. One of the most common questions is: Can foreigners own 100% of a company in Vietnam, and in which sectors does this apply? The answer is yes, but the scope depends on the list of conditional business lines and Vietnam’s international commitments.

Below is a detailed analysis of the sectors that allow 100% foreign ownership and those that still have restrictions or require joint ventures.

1. Industries in which foreigners are allowed 100% ownership

According to the Law on Investment and commitments under the WTO, CPTPP, EVFTA, and others, most service and manufacturing sectors allow foreign investors to establish wholly foreign-owned enterprises. Some common groups include:

1.1. Trading – Import & Export

Foreign investors are permitted to:

• Establish a 100% foreign-owned trading company
• Exercise distribution, wholesale, and retail rights
• Conduct multi-sector import and export activities (except prohibited goods)

1.2. Manufacturing and processing

Foreigners can own 100% in most fields such as:

• Electronic component manufacturing
• Garments and footwear
• Wood processing
• Plastic and metal products
• Food and beverage production (except special conditional sectors)

1.3. Information technology and software

No ownership restrictions, including:

• Software development
• IT services
• Data centers
• Digital technology platforms

See also: Top 10 software outsourcing companies in Ho Chi Minh City

1.4. Consulting services

Mostly eligible for 100% foreign ownership, except conditional sectors like legal and auditing services:

• Business consulting
• Management consulting
• Market research
• Marketing services

1.5. Education and training

Foreign-owned education institutions may operate with 100% foreign investment in:

• Vocational training
• Short-term training
• Programs not included in restricted categories

However, K–12 education requires stricter conditions related to curriculum, facilities, and minimum capital.

You may also be interested in: Procedures for establishing a Foreign-Invested enterprise in the Short-Term training sector

1.6. Accommodation and eood services (F&B)

Foreigners are allowed to:

• Open 100% foreign-owned restaurants
• Establish hotels, homestays, and resorts

(Subject to compliance with fire safety, security, and food safety regulations)

See also: How foreigners must comply with fire safety regulations when running a restaurant

1.7. Tech-based transportation and logistics

100% foreign ownership is permitted in:

• Warehousing
• Domestic goods transportation using vehicles under 3.5 tons
• Delivery and courier services

Some logistics subsectors remain restricted, as discussed below.

2. Industries in which foreigners cannot own 100% capital

Although Vietnam is increasingly open, certain sectors still require joint ventures or have ownership limits:

2.1. Outdoor advertising

Often requires joint ventures and does not allow 100% ownership for certain advertising types.

2.2. Transportation services

• Passenger transport (taxis, buses, interprovincial transport): joint ventures required, with foreign capital capped.
• Maritime transport: restrictions vary depending on the specific type.

2.3. Real estate

Foreigners are not permitted to:

• Engage in 100% foreign-owned real estate brokerage (except for certain WTO-committed types)
• Buy and sell residential properties like domestic enterprises

However, they are allowed to:

• Lease land and construct buildings for lease
• Operate industrial real estate businesses
• Provide property management and project consulting services

2.4. Auditing and legal services

• Legal services: require establishing a foreign law firm under a specific legal framework.
• Auditing: requires professional licenses and imposes ownership limits.

2.5. Security and defense sectors

Not open to foreign investment.

3. When Should Foreign Investors Check Business Lines Before Establishing a Company?

Foreign investors must verify:

• Business lines under WTO Commitments
• The list of conditional business sectors
• Sector-specific regulations (education, logistics, advertising, etc.)
• Ownership ratio requirements for each industry

Incorrect identification of business lines may lead to:

• Refusal of IRC issuance
• Multiple rounds of license amendments
• Violations resulting in administrative penalties

Foreigners may own 100% of a company in Vietnam in most sectors such as trading, manufacturing, IT, education, F&B, and logistics. However, certain industries still require joint ventures or impose ownership restrictions. Identifying the correct business line from the start helps investors save time, reduce costs, and ensure smooth licensing.

See also: 59 Conditional Business Lines for Foreign Investors