Vietnam continues to attract strong foreign investment. In the first two months of 2026, registered foreign direct investment reached US$6.03 billion, while realised FDI rose 8.8% year on year to US$3.21 billion, showing continued investor confidence in the market.
For foreign businesses, a joint venture can provide a practical route into Vietnam, particularly where local participation, sector knowledge or established networks are important. By combining capital, expertise and market access, both partners can share responsibility while building a structure suited to the opportunity.
This guide explains how a joint venture company in Vietnam works, the key ownership and regulatory considerations, and the steps involved in setting one up under the current 2026 framework.
A joint venture (JV) is a business arrangement where two or more parties agree to pool their resources to accomplish a specific task, such as launching a new project or pursuing other business activities. Each participant in the JV shares responsibility for the venture's profits, losses, and costs. However, it operates as its own entity, separate from the other business interests of its participants.
Although a joint venture might be informally referred to as a partnership, it can be established using various legal structures, including corporations, partnerships, limited liability companies (LLCs), or other business entities. While JVs are often created for specific production or research purposes, they can also be formed for ongoing business activities. Besides, they can involve collaborations between large and small companies, allowing them to take on one or multiple projects and deals together.
A joint venture allows each party to pursue a new business opportunity while sharing the associated costs and risks. Since joint ventures are inherently riskier than routine business operations, this collaborative approach helps mitigate individual exposure to risk.
With the right partners, a joint venture benefits from a broader base of knowledge and a more diverse talent pool than any single party could offer alone. For instance, an entertainment joint venture between an animation studio and a streaming content provider can launch more quickly and with a higher likelihood of success than if either company attempted the project independently.
Entering into a joint venture requires a willingness to relinquish some control, as key decisions are made collectively by the involved parties. It’s crucial that all participants share the same goals and are equally committed to the venture's success.
Significant differences in company cultures and management styles can hinder collaboration. For example, the communication and working styles of an animation studio may differ greatly from those of a digital streaming giant, potentially leading to conflicts.
Additionally, a joint venture increases the number of management teams involved. If one party undergoes a major change in its business structure or executive leadership, the joint venture may suffer as a result, potentially becoming deprioritised or overlooked.
To legally incorporate and operate a joint venture in Vietnam, the following requirements must be met:
Certain sectors in Vietnam do not allow 100% foreign ownership of a joint venture, necessitating a partnership with a local company.
Some of these restricted sectors include:
This ensures that joint ventures in these sectors align with Vietnam's regulations and local partnerships are in place where required.
The process of setting up a joint venture in Vietnam is as follows:
Where required, apply for an IRC with the competent investment registration authority. For projects not subject to investment policy approval, the IRC is generally issued within 10 working days after a valid dossier is received.
Register the joint venture with the competent business registration agency. A valid ERC application is generally processed within 3 working days.
Complete the required tax registration, invoicing and reporting procedures after incorporation. From 1 January 2026, the annual business licence fee is no longer payable.
Ensure that your joint venture contributes the required capital within 90 days of receiving the ERC.
Certain business lines in Vietnam require additional licenses to operate legally. For example, a construction permit is necessary if you are establishing a manufacturing company. Verify whether your business needs any supplementary licenses and complete the application process accordingly.
Setting up a joint venture in Vietnam requires careful planning around ownership, market access conditions, capital commitments and the approvals needed for the proposed business activity. These considerations are particularly important under Vietnam’s 2026 investment framework, where the appropriate structure and registration sequence can vary depending on the investors and sector.
Ascentium Vietnam supports foreign investors from initial structuring through investment and enterprise registration, licensing, accounting, tax and ongoing compliance. Our team helps businesses understand the requirements, coordinate with their Vietnamese partners and move from planning to establishment with a clear, practical approach.