Under Vietnam Law, foreign company can also establish the Branch Office to carry out business activities in Vietnam.
However, this form is not very popular in practice except for branch office of foreign law firms, foreign bank and insurance company.
With respect to the foreign trade companies and foreign tourist companies, despite of that Vietnam Commercial Law and Vietnam Tourism Law clearly stipulates conditions and procedures for setting up branch office of foreign trade companies and foreign tourist companies, foreign investors are recommended to setup FIC as an alternative option in practice due to that under Vietnam-WTO Commitment, Vietnam does not commit to permit foreign investor to setup branch office in trade and tourism.
