{"id":14405,"date":"2026-03-20T09:58:28","date_gmt":"2026-03-20T02:58:28","guid":{"rendered":"https:\/\/cdlaf.vn\/?p=14405"},"modified":"2026-03-20T10:01:04","modified_gmt":"2026-03-20T03:01:04","slug":"foreign-direct-investment-procedures-issuing-enterprise-registration-certificate-erc-before-investment-registration-certificate-irc","status":"publish","type":"post","link":"https:\/\/cdlaf.vn\/en\/foreign-direct-investment-procedures-issuing-enterprise-registration-certificate-erc-before-investment-registration-certificate-irc\/","title":{"rendered":"Foreign Direct Investment Procedures: Issuing Enterprise Registration Certificate (ERC) Before Investment Registration Certificate (IRC)"},"content":{"rendered":"<h1><em>Author:<\/em><\/h1>\n<ul>\n<li><em>Tran Phuong Nam &#8211; Lawyer<\/em><\/li>\n<li><em>Vo Nguyen Truc Linh &#8211; Legal Department<\/em><\/li>\n<\/ul>\n<p><em>The entry into force of the Law on Investment 2025 on March 1, 2026, marks a significant turning point in the state management of Foreign Direct Investment (FDI) in Vietnam. For a long period under the framework of the Law on Investment 2020, the process for foreign investors to establish a commercial presence in Vietnam operated under a &#8220;parent-subsidiary&#8221; licensing mechanism. This required investors to first obtain an Investment Registration Certificate (IRC) for project approval before proceeding with the Enterprise Registration Certificate (ERC). While this mechanism ensured strict state control during the pre-licensing stage, it also created time lag for foreign capital entering the market. To address this bottleneck, the new legal framework under the Law on Investment 2025 and its draft guiding Decree have introduced a significant shift: allowing foreign investors to establish an economic organization first, and subsequently complete the legal investment procedures for the project. By reversing the sequence established by the 2020 Law, these new regulations are expected to resolve the hurdles of the previous process, facilitate FDI inflows, and bring Vietnam\u2019s legal framework closer to international best practices.<\/em><\/p>\n<figure id=\"attachment_13182\" aria-describedby=\"caption-attachment-13182\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-13182\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-weekendplayer-186461-600x400.jpg\" alt=\"\" width=\"600\" height=\"400\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-weekendplayer-186461-600x400.jpg 600w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-weekendplayer-186461-1200x800.jpg 1200w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-weekendplayer-186461-768x512.jpg 768w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-weekendplayer-186461-1536x1024.jpg 1536w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-weekendplayer-186461-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-13182\" class=\"wp-caption-text\">Source: pexels-weekendplayer-186461<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #a32411;color:#a32411\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #a32411;color:#a32411\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cdlaf.vn\/en\/foreign-direct-investment-procedures-issuing-enterprise-registration-certificate-erc-before-investment-registration-certificate-irc\/#1_The_Nature_of_Establishing_Economic_Organizations_under_the_New_Model\" >1. The Nature of Establishing Economic Organizations under the New Model<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cdlaf.vn\/en\/foreign-direct-investment-procedures-issuing-enterprise-registration-certificate-erc-before-investment-registration-certificate-irc\/#2_The_Separation_of_Charter_Capital_and_Investment_Capital\" >2. The Separation of Charter Capital and Investment Capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cdlaf.vn\/en\/foreign-direct-investment-procedures-issuing-enterprise-registration-certificate-erc-before-investment-registration-certificate-irc\/#3_Impact_Assessment_and_Compliance_Recommendations\" >3. Impact Assessment and Compliance Recommendations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/cdlaf.vn\/en\/foreign-direct-investment-procedures-issuing-enterprise-registration-certificate-erc-before-investment-registration-certificate-irc\/#SEND_CONSULTATION_REQUEST\" >SEND CONSULTATION REQUEST<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_The_Nature_of_Establishing_Economic_Organizations_under_the_New_Model\"><\/span>1. The Nature of Establishing Economic Organizations under the New Model<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the draft Decree guiding the Law on Investment 2025, the sequence for establishing an economic organization by foreign investors has been fundamentally restructured. Specifically, when investing through the establishment of an economic organization, foreign investors are entitled to incorporate under the Law on Enterprises or relevant specialized laws. The core change at this stage lies in the authority to control market entry conditions: the business registration authority (or the competent authority corresponding to the type of economic organization) will directly undertake the assessment and review of market access conditions for restricted sectors applicable to foreign investors. The standardization of dossiers, sequences, and procedures at this step will strictly comply with the Law on Enterprises, ensuring consistency and reducing the processing time for initial administrative procedures.<\/p>\n<p>Only after the economic organization has been legally established and granted legal entity status may it proceed with the investment procedures for the project in accordance with investment laws. However, to prevent the creation of shell companies or the circumvention of investment regulations, the draft Decree establishes a strict time-bound barrier. Accordingly, within a maximum period of six months from the date of incorporation, the economic organization is required to complete the procedures for obtaining the Investment Registration Certificate (IRC) to implement the project in line with its registered business lines. This is a resolutory condition, should the investor fail to secure the Investment Registration Certificate within the aforementioned six-month period, the applicable sanction will be the mandatory dissolution of the economic organization under the regulations on enterprise registration.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_The_Separation_of_Charter_Capital_and_Investment_Capital\"><\/span>2. The Separation of Charter Capital and Investment Capital<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The flexibility of the new legal framework extends beyond licensing sequences to the capital management mechanism. Departing from the traditional approach of strictly linking or equating charter capital with total investment capital, the new regulations affirm that the charter capital of an economic organization established by foreign investors is not necessarily have to equal the investment capital of the project. This separation provides investors with an efficient capital structuring tool, allowing them to design flexible financial frameworks based on actual disbursement schedules and access to various fundraising channels. Consequently, the economic organization is held strictly accountable for complying with the capital contribution schedule and mobilizing other funding sources to execute the project, as recorded in the Investment Registration Certificate.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_Impact_Assessment_and_Compliance_Recommendations\"><\/span>3. Impact Assessment and Compliance Recommendations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>From a practical legal perspective, the transition to the &#8220;ERC-first, IRC-after&#8221; model is a significant highlight, enabling investors to quickly establish legal entity status and execute essential transactions (such as signing land lease agreements, recruiting key personnel, and opening bank accounts\u2014at an earlier stage). However, the six-month window imposes substantial compliance pressure. For complex investment projects involving technology explanations, environmental impact assessments, or land-use planning hurdles, any delay in obtaining the Investment Registration Certificate beyond the deadline puts the enterprise at risk of mandatory dissolution.<\/p>\n<p>Consequently, foreign investors must conduct comprehensive legal due diligence and feasibility assessments well before filing for the Enterprise Registration Certificate (ERC). Preparing both sets of dossiers (corporate and investment) in parallel is the optimal strategy to ensure a seamless transition from the incorporation stage to the project approval stage, thereby avoiding unnecessary financial and legal losses resulting from statutory deadline violations.<\/p>\n<p><strong><em>Time<\/em><\/strong><strong><em> of writing<\/em><\/strong><em>: 13\/03\/2026<\/em><\/p>\n<p><em>The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer \u00a0at\u00a0 <a href=\"https:\/\/mail.google.com\/mail\" target=\"_blank\" rel=\"noopener\"><strong>info@cdlaf.vn<\/strong><\/a><\/em><\/p>\n<div class=\"content-post-nd\">\n<div style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5519 size-full aligncenter\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png\" alt=\"\" width=\"1080\" height=\"600\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png 1080w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-720x400.png 720w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-768x427.png 768w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/><\/div>\n<\/div>\n<div class=\"content-post-nd\">\n<p><strong>Why choose CDLAF\u2019s service?<\/strong><\/p>\n<ul class=\"li-content\">\n<li>We provide effective and comprehensive legal solutions that help you save money and maintain compliance in your business;<\/li>\n<li>We continue to monitor your legal matters even after the service is completed and update you when there are any changes in the Vietnamese legal system;<\/li>\n<li>Our system of forms and processes related to labor and personnel is continuously built and updated and will be provided as soon as the customer requests it;<\/li>\n<li>As a Vietnamese law firm, we have a thorough understanding of Vietnam&#8217;s legal regulations, and grasp the psychology of employees, employers, and working methods at competent authorities;<\/li>\n<li>CDLAF&#8217;s team of lawyers has many years of experience in the field of labor and enterprises, as well as human resources and financial advisory.<\/li>\n<li>Strict information security procedures throughout the service performance and even after the service is completed.<\/li>\n<\/ul>\n<\/div>\n<p><strong style=\"color: #a32411;\">You can refer for more information:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/the-mediation-mechanism-in-civil-procedure-legal-nature-and-the-risk-optimization-problem-for-enterprises\/\">The Mediation Mechanism In Civil Procedure: Legal Nature And The Risk Optimization Problem For Enterprises<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/special-investment-procedures-new-policies-applicable-to-high-tech-and-semiconductor-projects\/\">Special Investment Procedures: New Policies Applicable to High-Tech and Semiconductor Projects<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/applying-the-force-majeure-clause-to-exempt-liability-under-the-contract\/\">Applying the force majeure clause to exempt liability under the contract<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/conditions-for-granting-a-license-for-establishment-of-a-representative-office-of-foreign-traders-in-vietnam\/\">Conditions for Granting a License for Establishment of a Representative Office of Foreign Traders in Vietnam<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/closure-of-a-representative-office-of-a-foreign-trader-in-vietnam\/\">Closure of a Representative Office of a Foreign Trader in Vietnam<\/a><\/li>\n<\/ul>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2681-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"2681\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form 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For a long period under the framework of the Law on Investment&#8230;<\/p>\n","protected":false},"author":4,"featured_media":13182,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[],"class_list":["post-14405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/14405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/comments?post=14405"}],"version-history":[{"count":2,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/14405\/revisions"}],"predecessor-version":[{"id":14407,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/14405\/revisions\/14407"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media\/13182"}],"wp:attachment":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media?parent=14405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/categories?post=14405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/tags?post=14405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}