Foreign Branch Office in Vietnam
A Commitment Structure, Not an Entry Point
What Is a Foreign Branch Office? (The Real Definition)
A foreign branch office in Vietnam isn't "a way to do business legally." It's a commitment signal. A structure that says: we've done our research, we're ready to invest, and we're here for at least 5 years.
Most foreign companies assume a branch office is just a step up from a representative office. That's missing the point. A branch office is the right structure when you've already validated the Vietnamese market and need direct revenue operations without creating a separate legal entity. If you're still testing the market, a branch office is premature. If you need full liability protection and investment flexibility, you need a subsidiary company, not a branch.
The branch office license proves your business meets Vietnam's requirements for direct commercial operations. You can sign contracts, invoice clients, hire employees, and open multiple bank accounts. But you're also taking on full tax obligations and regulatory compliance from day one.
When to set up
When it's the wrong choice
Branch Office vs. Representative Office — The Actual Difference
"The choice isn't 'which is better.' The choice is 'what stage is your Vietnam business at?'"
| Critical Question | Branch Office | Rep. Office |
|---|---|---|
| Can you generate revenue in Vietnam? | Yes, direct business operations | No, only liaison and research |
| Do you need to sign contracts? | Yes | No, only oversight of existing contracts |
| Will you hire employees for commercial work? | Yes | Only for administrative/liaison roles |
| Do you need multiple bank accounts? | Yes, VND and foreign currency | Only VND payment account |
| Are you ready for full tax compliance? | Must be (CIT, VAT, PIT) | Only PIT for employees |
| How long does setup take? | 15-30 working days | 7-10 working days |
| What's the cost structure? | Higher: capital requirements + ongoing taxes | Lower: good for market exploration |
The 4-Step Process (What Actually Happens)
What CMT Does — And What We Don't Do
What CMT handles
What CMT doesn't do
"CMT completes branch office setup in 10-15 working days with complete, qualified documents. The 98% first-time success rate comes from pre-submission qualification screening, not from shortcuts."
Service Combinations
Comprehensive solutions designed for different stages of market entry.