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Vietnam Business Legal Articles

Browse our 2 legal articles about Business in Vietnam written by expert lawyers.

Starting a Company in Vietnam: Capital Contribution
Business
Most foreign investors operate in Vietnam through a limited liability company (LLC) or joint stock company (JSC); both are governed primarily by the Law on Enterprises 2020 and the Law on Investment 2020. The "90-day rule" on charter capital is now strictly enforced: you must fully inject registered capital within... Read more โ†’
Selling Online in Vietnam? New Tax Withholding Rules for E-Commerce
Business
From July 2025, major e-commerce platforms in Vietnam (such as Shopee, Lazada, TikTok Shop) must withhold and declare taxes on behalf of sellers under Decree 117. For trading goods, the standard withholding rate is 1.5% of gross revenue (1% VAT + 0.5% PIT) for individuals and household businesses that fall... Read more โ†’

About Business Law in Lam Dong, Vietnam

Lam Dong is a highland province in Vietnam known for agriculture, horticulture, forestry, and tourism - with Da Lat as the provincial center. Business law that applies in Lam Dong is based on national statutes - such as the Enterprise Law, Investment Law, Land Law, Labor Code, Tax Law, and environmental regulations - but local authorities and provincial departments handle implementation, licencing, inspections, and administrative procedures. Local rules and practice can affect permits, land use, environmental approvals, and sector-specific licence requirements for hospitality, agro-processing, and manufacturing.

This guide explains common legal issues for businesses in Lam Dong and gives practical steps for seeking legal help locally.

Why You May Need a Lawyer

Business activities in Lam Dong can trigger legal issues where professional advice or representation is valuable. Typical reasons to hire a lawyer include:

- Company formation and registration - choosing the best legal form, preparing charter documents and shareholder agreements, and obtaining business registration or investment certificates.

- Land and property matters - negotiating leases, buying land use rights, handling land-use conversion, or resolving disputes about boundaries and compensation.

- Regulatory compliance - meeting environmental impact assessment requirements, food safety and hygiene standards for tourism and agriculture, fire and construction permits, and specialised sector licences.

- Contracts and transactions - drafting and negotiating supply contracts, distribution agreements, franchise agreements, and M&A due diligence.

- Employment and social insurance - preparing labour contracts, handling disciplinary actions, redundancies, social insurance and trade union matters, and defending employment disputes.

- Tax and customs - tax registration, VAT and corporate income tax compliance, handling tax audits and disputes, and customs procedures for import-export businesses.

- Dispute resolution and litigation - representing clients in commercial disputes, administrative appeals, arbitration, or enforcement of judgments.

- Liaison with local authorities - a local lawyer can expedite paperwork, advise on local practice, and represent clients at provincial agencies and one-stop windows.

Local Laws Overview

Key legal areas important for Business in Lam Dong include:

- Company and Investment law - Enterprises register under the national Enterprise Law; foreign-invested projects may require an Investment Registration Certificate from the provincial Department of Planning and Investment. Local implementation may include additional provincial requirements or conditions for certain sectors or land use.

- Land law and land use rights - Vietnam does not grant private freehold of agricultural and forestry land; individuals and businesses hold land use rights issued in the Land Use Right Certificate (the "Red Book"). Converting agricultural land to commercial or residential use often requires approvals and payment of fees to local authorities.

- Environmental and agricultural regulations - projects may need environmental impact assessments, environmental protection plans, or permits for waste treatment. Agriculture, forestry and flower production have specific regulations on pesticides, seeds and supply chain traceability.

- Labour and social insurance - employment relationships must comply with the Labour Code, including written contracts, minimum wage rules, working hours, termination procedures and registration for social insurance, health insurance and unemployment insurance.

- Taxation - businesses must register for tax, file VAT and corporate income tax returns, and comply with local tax authority procedures. Incentives or preferential tax treatments may apply to certain investment projects, subject to provincial and national rules.

- Industry-specific licences - hospitality, food processing, construction, and export sectors require sector licences and compliance with safety, hygiene, and technical standards enforced by provincial departments.

- Administrative procedures and dispute resolution - the provincial one-stop shop at the Department of Planning and Investment and other departments is the common point for registrations and licences. Disputes can be handled by negotiation, arbitration, administrative review, or court litigation at provincial courts.

Frequently Asked Questions

How do I set up a company in Lam Dong?

To set up a company, choose the legal form (limited liability company, joint-stock company, partnership, or sole proprietorship), prepare founding documents and company charter, complete the online application and submit to the provincial Business Registration Office at the Department of Planning and Investment. Foreign investors may need an Investment Registration Certificate before company formation. Local lawyers or service providers can help prepare documents and file at the one-stop window.

Can a foreigner buy land in Lam Dong?

Foreigners cannot directly own land freehold in Vietnam. Foreign-invested enterprises may be granted land use rights or lease land from the state for a term, and foreign individuals who meet legal conditions can lease or have long-term land use rights for residential purposes in certain cases. Land purchases by Vietnamese entities controlled by foreigners are subject to close legal scrutiny and may require specific approvals. Always seek legal advice for land transactions.

What permits are commonly required for tourism or hospitality businesses?

Tourism and hospitality businesses typically need a business registration, fire safety approval, food safety and hygiene certificates for restaurants, construction permits for building works, and sometimes tourism operation licences for travel services. Environmental and waste management permits may also apply. Requirements vary by type and scale of activity and local authority practice.

How long does company registration usually take?

Company registration at the provincial one-stop window often takes a few working days for straightforward cases where documentation is complete. Foreign-invested projects that require investment registration or licences, land approvals, or complex sector licences can take longer - several weeks to months depending on approvals needed.

What are the main tax obligations for businesses?

Businesses must register with the tax authority, issue invoices for sales, file monthly or quarterly VAT returns, file annual corporate income tax returns, and submit annual financial statements. Employer obligations include personal income tax withholding and social insurance contributions. The Lam Dong Tax Department administers local tax procedures and audits.

How are land lease and land-use conversion handled?

Land leases and conversions require written agreements and approvals from the Department of Natural Resources and Environment and the relevant district or provincial Peoples Committee for conversion of land use purpose. Payment of land use fees or land rent may be required. Legal checks should confirm the land status, encumbrances, and whether conversion is permitted for the intended business purpose.

What should I include in commercial contracts in Lam Dong?

Contracts should clearly define the parties, scope of work or goods, price and payment terms, delivery and performance schedules, quality standards, liability and indemnities, dispute resolution mechanism, governing law (Vietnam law is usual), termination clauses, and signatures and seals. For cross-border deals, attention to currency, tax withholding, and export-import obligations is important.

How do I hire and terminate employees legally?

Employers must sign written labour contracts, register employees with social insurance and tax authorities, and comply with wage, working hours, and leave rules. Termination must follow the Labour Code - either by mutual agreement, resignation, or lawful dismissal with documented grounds and notice. Severance, final payments and references should follow statutory procedures. A local labour lawyer can help manage risks and documentation.

What happens in a commercial dispute in Lam Dong?

Parties often first try negotiation or mediation. If that fails, disputes can go to arbitration or to the local court system. For administrative disputes with authorities, administrative appeals or complaints may be available. Legal representation by a lawyer experienced in local courts and procedural rules is important for effective outcomes.

How do I find a reliable local lawyer or law firm?

Look for lawyers with experience in your industry and with specific Lam Dong practice, such as land, investment, tax or labour law. Ask for references, review prior local experience, check credentials with the Vietnam Bar Federation, and request a written engagement letter outlining scope, fees and timelines. Meeting in person or via video to confirm communication and local network is recommended.

Additional Resources

- Lam Dong Provincial Peoples Committee - the top provincial authority overseeing local policy and approvals.

- Department of Planning and Investment of Lam Dong - company registration, investment certificates and one-stop procedures.

- Lam Dong Tax Department - tax registration, filing and audits.

- Department of Natural Resources and Environment - land use rights, land-use conversion and environmental requirements.

- Department of Industry and Trade - market regulation, business licences and trade issues.

- Department of Agriculture and Rural Development - regulations related to agriculture, forestry and plant protection.

- Department of Culture, Sports and Tourism - guidance for tourism enterprises and hospitality operations.

- Lam Dong Social Insurance Office - employer registration and social insurance obligations.

- Provincial Courts and Arbitration Centres - for dispute resolution; local law firms and experienced local lawyers for representation.

- Vietnam Bar Federation and local bar associations - resources to check lawyer credentials and professional standards.

These agencies and organisations can provide forms, procedural guidance and contact points. Visiting the respective provincial offices in Da Lat or seeking advice from local law firms is common practice.

Next Steps

- Identify your main legal needs - company formation, land, licences, contracts, tax, labour or dispute resolution.

- Gather essential documents - identification, company documents if existing, land certificates, contracts, financial records and any official notices.

- Contact a local lawyer with relevant experience - ask about experience in Lam Dong, fees, timeline and obtain a written engagement letter.

- Conduct due diligence where needed - title checks for land, compliance checks, tax health checks and regulatory gap analysis.

- Prepare and file required applications - use the one-stop windows at provincial departments to submit registration and licence paperwork, with your lawyer supporting communications.

- Keep records and maintain compliance - file tax returns, renew licences on time, maintain labour records and respond promptly to inspections or notices.

- If a dispute arises - seek legal advice quickly, consider negotiation or mediation first, and preserve evidence and documents for potential arbitration or litigation.

Remember - this guide provides general information and does not replace professional legal advice. Laws and local procedures change, and a qualified local lawyer can provide tailored guidance for your situation in Lam Dong.

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Disclaimer:

The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.

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