What is the difference between Foreign-owned enterprise (FOE) and Representative office (RO) in Vietnam?

As the legally permissible business lines for Representative Offices (ROs) differ from foreign-owned entities (FOEs), namely that ROs are not allowed to directly conduct profit-generated business activities, therefore the annual reporting requirements are different for ROs as well.

Prior to the final working day of January of the following year, ROs must submit a report of their operations during the previous year to the Department of Industry and Trade in the province in which the RO is based.

This report, which must follow a form issued by the Ministry of Industry and Trade, is generally comprised of the information described here, namely:

• basic information,
• human resources situation, and
• annual operation activities.

In addition, ROs should handle personal income tax finalization and annual social insurance obligations.