Industry

Accounting for foreign-owned in Vietnam: WFOE compliance and group reporting

Specialist accounting and tax for 100%-foreign-owned companies in Vietnam: WFOE setup, group reporting, transfer pricing, and profit repatriation.

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Overview

Foreign-owned companies (WFOEs) in Vietnam have a specific set of obligations: SBV capital and loan reporting, transfer pricing documentation, inter-company agreement maintenance, and group reporting. Our WFOE team has worked with thousands of foreign-owned companies across sectors.

Who needs this service

  • 100%-foreign-owned companies in Vietnam
  • Joint ventures with complex inter-company flows
  • Regional headquarters with multi-entity Vietnam operations

Legal requirements

SBV reporting

WFOEs must report capital contributions, loan drawdowns, and loan repayments to the State Bank of Vietnam.

Transfer pricing

WFOEs with related-party transactions of VND 50 billion or more must prepare a Local File.

Group reporting

WFOEs typically report to the parent on a monthly / quarterly / annual basis, with consolidation in the parent's reporting currency.

Pricing

Indicative fees

ItemFee
WFOE monthly compliancefrom USD 1,500 / month
Group reporting reconciliationfrom USD 1,000 / month

Fees are indicative and depend on transaction volume, complexity, and reporting requirements. Request a tailored proposal.

Timeline

Typical engagement timeline

Phase 1 · Month 1

Setup

Chart of accounts, group mapping, SBV registration, TP framework.

Phase 2 · From month 2

Steady state

Monthly close, group reporting, TP documentation, SBV filings.

Watch out

Common mistakes we help you avoid

  • 01Treating inter-company management fees as deductible without the benefit test
  • 02Not reporting capital contributions to the SBV
  • 03Missing the TP Local File deadline
  • 04Failing to amend the IRC for material changes
Why us

What you get

WFOE expertise

We work with WFOEs across sectors and understand the SBV, TP, and group reporting obligations.

Group-ready

Reporting that reconciles to the parent group's chart of accounts and reporting calendar.

Audit defence

We represent you in GDT and SBV audits, presenting the documentation and negotiating adjustments.

FAQ

Frequently asked questions

What is the difference between a 100% foreign-owned company and a joint venture?
A 100% foreign-owned company (Wholly Foreign-Owned Enterprise, WFOE) is wholly owned by the foreign investor. A joint venture is owned by both a foreign and a local partner. The choice depends on the sector, the local-partner value, and the strategic goals.
What are the obligations specific to WFOEs?
WFOEs have specific obligations: SBV reporting on capital and loans, transfer pricing documentation, IRC amendments for material changes, and stricter approvals for share transfers. We help WFOEs navigate these obligations.
How is profit repatriation handled for a WFOE?
After-tax profits can be distributed as dividends. There is no Vietnamese withholding tax on dividends paid to a foreign corporate shareholder. The remittance is processed by the bank with SBV notification.
What is the role of a local service-of-process address?
A WFOE must maintain a registered address in Vietnam for service of process. The address is recorded on the ERC. We provide registered-office services and mail handling for clients that do not maintain a physical office.
Get Started

Ready to discuss foreign-owned companies?

Free 30-minute consultation. We'll review your situation and outline a fixed-fee engagement.

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