Executive Summary
Expanding manufacturing operations from Germany into Vietnam requires much more than incorporating a local company. Foreign investors must coordinate investment licensing, tax planning, employment, corporate governance, banking, customs, and ongoing regulatory compliance across multiple jurisdictions.
In one recent cross-border project, a German industrial manufacturer engaged ECOVIS professionals in both Germany and Vietnam to support its expansion into Vietnam. While the German team coordinated with the parent company’s management and advisors, ECOVIS Vietnam executed the local implementation, enabling the client to move from investment planning to operational readiness through a coordinated cross-border approach.
(Client details have been anonymised to preserve confidentiality.)
By Attorney Vu Manh Quynh
Managing Partner, ECOVIS Vietnam Law
Last reviewed: 11 July 2026
Project Snapshot
| Item | Details |
| Industry | Industrial Manufacturing |
| Investor Origin | Germany |
| Investment Destination | Vietnam |
| Entry Strategy | Wholly Foreign-Owned Manufacturing Entity |
| ECOVIS Offices | Germany + Vietnam |
| Matter Type | Market Entry & Corporate Governance |
| Sourcing | Grounded–Anonymized |
Vietnam: A Strategic Manufacturing Destination
Vietnam continues to attract German manufacturers seeking to diversify supply chains, establish regional production capacity, and strengthen access to Asian markets. For many Mittelstand companies, Vietnam represents a long-term strategic investment rather than simply a lower-cost production location. However, successful expansion depends on managing a wide range of legal and operational issues, including:
- investment licensing;
- corporate establishment;
- industrial land selection;
- labour compliance;
- tax registration;
- customs procedures;
- post-licensing implementation.
These workstreams frequently involve advisors in multiple countries.
The Business Challenge
The client, a German industrial manufacturer, planned to establish manufacturing operations in Vietnam while maintaining its existing corporate structure in Germany. The management team needed to coordinate:
- headquarters decision-making in Germany;
- implementation in Vietnam;
- communication across multiple stakeholders;
- project timelines;
- regulatory compliance.
Rather than engaging separate advisers independently, the client sought a coordinated cross-border approach.
A Cross-Border Advisory Model
The project demonstrated how different ECOVIS member firms can complement one another while remaining focused on their respective jurisdictions.
ECOVIS Germany
The German team primarily supported:
- communication with headquarters;
- understanding the group’s commercial objectives;
- coordination with management;
- alignment with German reporting requirements;
- project management across jurisdictions.
ECOVIS Vietnam Law
ECOVIS Vietnam was responsible for local execution, including:
- investment structuring;
- Investment Registration Certificate (IRC);
- Enterprise Registration Certificate (ERC);
- corporate governance documentation;
- regulatory filings;
- employment compliance;
- legal review of commercial documentation;
- implementation support after incorporation.
Each office focused on its own jurisdiction while maintaining continuous communication throughout the project.
Why Cross-Border Coordination Matters
Many international expansion projects encounter delays because legal, tax and operational advice is fragmented. Common examples include:
- parent company decisions made without considering Vietnamese licensing requirements;
- inconsistencies between group structure and local investment documentation;
- delays in capital contribution;
- employment planning occurring after incorporation;
- commercial contracts being signed before regulatory approvals are completed.
Cross-border coordination helps reduce these implementation risks.
Lessons for German Manufacturers
Companies considering expansion into Vietnam should begin with a structured implementation roadmap rather than treating incorporation as the first milestone. In practice, successful projects generally involve:
1. Aligning commercial objectives with legal implementation
Corporate strategy should drive the legal structure—not the reverse.
2. Planning licensing before signing commercial commitments
Investment approvals should be incorporated into the overall project timeline.
3. Coordinating multiple advisers
Headquarters, local management, tax advisers and lawyers should work from the same implementation plan.
4. Viewing compliance as part of project execution
Investment licensing is only one stage of establishing operations. Employment, customs, tax registration and ongoing corporate compliance remain equally important.
5. Maintaining communication across jurisdictions
Cross-border projects succeed when advisers understand both the local legal framework and the client’s international business objectives.
Common Misconceptions
“Company incorporation means the project is complete.”
In reality, incorporation marks the beginning of implementation.
“German documentation can simply be translated for Vietnam.”
Vietnamese regulatory requirements often require documents to be adapted rather than translated literally.
“Legal, tax and accounting can be handled separately.”
In practice, these workstreams frequently overlap during market entry.
How ECOVIS International Creates Value
One advantage of the ECOVIS International network is the ability to combine local execution with international coordination. Rather than relying solely on referrals, member firms collaborate throughout the lifecycle of a project while each remains responsible for advice within its own jurisdiction. For international investors, this can simplify communication and improve consistency across multiple workstreams.
How ECOVIS Vietnam Law Supports Foreign Investors
ECOVIS Vietnam Law regularly advises international investors on:
- Vietnam market entry;
- foreign direct investment (FDI);
- manufacturing and factory setup;
- corporate governance;
- M&A transactions;
- employment and immigration;
- commercial contracts;
- post-licensing compliance;
- cross-border dispute resolution.
Working alongside ECOVIS member firms worldwide, we help international businesses navigate Vietnam’s legal and regulatory framework while coordinating effectively with overseas stakeholders.
Frequently Asked Questions
What licences does a German manufacturer need to establish a factory in Vietnam?
Typical requirements include an Investment Registration Certificate (IRC) and an Enterprise Registration Certificate (ERC), together with any sector-specific or environmental approvals depending on the manufacturing activity.
Why coordinate legal advisers in both Germany and Vietnam instead of using one?
Headquarters decisions, group reporting requirements and commercial objectives are governed by German and group-level considerations, while licensing, employment and implementation are governed by Vietnamese law. Coordinating both reduces the risk of decisions made in one jurisdiction conflicting with requirements in the other.
How long does it take to move from investment planning to operational readiness?
Timelines vary by project scope, but licensing, land arrangements, employment set-up and implementation are typically planned as a single sequenced roadmap rather than separate, uncoordinated steps.
What corporate governance issues arise when German headquarters oversee a Vietnamese subsidiary?
Common issues include delegation of authority to local management, legal representative appointments, and aligning Vietnamese statutory governance documentation with German-group reporting lines.
How can ECOVIS Vietnam Law help German manufacturers expand into Vietnam?
ECOVIS Vietnam Law handles the Vietnamese legal workstream — investment structuring, licensing, governance and implementation — while coordinating directly with ECOVIS Germany on headquarters-side requirements.
Related Services
- Vietnam Market Entry Advisory
- Factory Setup & Manufacturing Licensing
- Investment Registration Certificate (IRC) & Enterprise Registration Certificate (ERC)
- Corporate Governance Advisory
- Labour & Employment Compliance
- Cross-Border Coordination with ECOVIS International
About ECOVIS Vietnam Law
ECOVIS Vietnam Law is the legal practice of the ECOVIS International network in Vietnam, advising foreign investors on market entry, corporate governance, manufacturing investment, employment, commercial transactions and regulatory compliance. Our clients include multinational corporations, family-owned businesses, private investors and growing international manufacturers expanding into Vietnam.
Related Articles
- Factory Setup in Vietnam: A Practical Roadmap for Foreign Manufacturers
- IRC vs ERC: Understanding Vietnam’s Investment Licensing Framework
- Germany–Vietnam Manufacturing: Key Legal Considerations for Market Entry
- Corporate Governance for Foreign-Invested Companies in Vietnam
- Post-Licensing Compliance Checklist for FDI Enterprises in Vietnam
Disclaimer: This article is provided for general informational purposes only and should not be regarded as legal, tax or accounting advice. Every investment project involves its own legal and commercial considerations. Professional advice should be obtained before making business or investment decisions.
