In Vietnam, a signed contract is not always an enforceable one. Many foreign investors are surprised to learn that a fully negotiated and executed contract can be declared invalid by a court, simply because it failed to meet specific, overlooked, legal formalities. This critical gap between a contract’s formation (the moment of signing) and its […]
Vietnam's strategic location in Southeast Asia, combined with its skilled workforce and potential for significant cost savings, is rapidly positioning it as a prime destination for global business process outsourcing.
As companies worldwide seek greater cost efficiency, the demand for high-quality call center services is surging.
However, for foreign investors, navigating the legal roadmap for setting up a call centre in Vietnam can be complex, particularly as the sector falls into a regulatory grey area.
This comprehensive guide provides the clarity you need.
Drawing from our experience helping hundreds of foreign investors, we will break down the legal framework, outline a step-by-step process, and explore strategic alternatives to turn regulatory challenges into a competitive advantage.
Key Takeaways:
- Market Potential: Vietnam is a rising hub for business process outsourcing, driven by competitive labor costs and improving digital infrastructure.
- Core Legal Hurdle: Call center services (Industry Code 8220) are not committed under Vietnam's WTO agreements, requiring a multi-authority approval process for foreign investors.
- Structured Process: Establishing a legal entity involves a clear, albeit lengthy, process of obtaining an Investment Registration Certificate (IRC) and an Enterprise Registration Certificate (ERC).
- Capital Requirements: While there is no fixed minimum investment capital, investors must propose a reasonable amount to cover operational expenses and demonstrate the project's financial viability to obtain approval.
- Strategic Alternatives: Options like registering similar business lines or engaging in center outsourcing with a local partner offer viable, lower-risk pathways to enter the market.
Vietnam’s Call Center Services Landscape And Outsourcing Potential
Vietnam’s role in the global business process outsourcing landscape is expanding rapidly. The country’s young, educated, and increasingly multilingual population creates a skilled workforce capable of handling complex customer communications.
This human capital advantage, coupled with low labor costs compared to regional peers, provides a strong foundation for cost-effectiveness.
A report from Vietnam Briefing (2025) highlights that ongoing upgrades to the country's telecom infrastructure are ensuring a more stable internet connection, which is critical for modern contact centers.
While many analyses focus on cost, Vietnam's true advantage lies in its growing service maturity.
We've seen clients successfully build a dedicated center team that delivers not just basic support, but sophisticated technical support and proactive customer care, directly enhancing customer satisfaction and fostering long-term customer relationships.
The Legal Foundation For Setting Up A Call Centre In Vietnam
Under Vietnamese law, operating a call center requires registering under Industry Code 8220: “Call-related service activities.”
This classification covers the essential services of a modern call center.
| Service Type | Description |
| Outbound Calls | Proactively making phone calls to potential customers for marketing, sales, conducting surveys, or gathering information. |
| Inbound Calls | Managing incoming customer calls, providing product information, handling inquiries, and collecting valuable customer feedback. |
Why Foreign Investors Face Restrictions
Here lies the critical distinction. For local companies, Code 8220 is an unconditional business line.
For foreign investors, it’s a different story.
Because this sector is not listed in Vietnam's WTO commitments, it is not automatically open to foreign investment. An analysis from Acclime (2025) clarifies that "uncommitted" does not mean "prohibited."
It means the Vietnamese government reviews applications on a case-by-case basis. In practice, any foreign-invested center business project must obtain approval from multiple authorities, which can significantly extend the timeline.
In fact, according to our experience, granting investment licenses to foreign investors in the call center field requires consulting and approval from at least 03 relevant ministries and branches: Ministry of Finance, Ministry of Science and Technology and Ministry of Industry and Trade.
In addition, depending on the field of service provision, it may be necessary to consult other relevant ministries and agencies.
Conditions And Capital Requirements For A Foreign Call Center Setup
A frequent question from clients is about the required investment capital. Legally, there is no prescribed minimum.
However, this is where practical experience is vital. The proposed capital must be sufficient and logical for your business plan, covering initial operational expenses like physical facilities, technology, and employee salaries.
The Department of Finance will scrutinize financial projections to ensure the project is viable. Proposing an unreasonably low investment capital is a common reason for application delays or rejections.
The entire call center setup process is designed to ensure that only serious, well-capitalized legal entities enter the market.
Successfully navigating this requires a meticulously prepared application that clearly articulates the project's economic benefits.
Step-By-Step Process To Establish A Foreign-Invested Call Center Company
While challenging, the process for a proper call center setup is structured.
Based on legal precedents outlined by sources like Lexology (2025), the procedure demands careful documentation and adherence to Vietnamese law.
Step 1: Apply For The Investment Registration Certificate (IRC)
This is the foundational step where you seek permission for your investment project. The application is submitted to the provincial Department of Finance.
Because this is an uncommitted sector, the Department of Finance will circulate your file to other competent authorities and require approval from them. The success of your center setup hinges on the quality and persuasiveness of this application.
Step 2: Obtain The Enterprise Registration Certificate (ERC)
Once you have the IRC, you can proceed with formally establishing your company. The ERC acts as the official birth certificate for your business in Vietnam.
This step is generally more straightforward, as the major regulatory hurdles were cleared during the IRC stage. At this stage, you will also appoint the company's legal representative.
Step 3: Fulfill Post-Licensing Obligations
With the IRC and ERC secured, your company is legally established. To become fully operational, you must:
- Make the official company seal.
- Open a capital bank account and a current account.
- Complete initial tax registration.
- Contribute the registered investment capital within the stipulated timeframe.
- Recruiting staff, starting a business
- Set up the call center infrastructure, including your center team, CRM systems, and telecom services.
Strategic Alternatives To Direct Investment In Center Outsourcing
Given the complexities, many foreign investors explore alternative strategies to minimize risk and accelerate market entry.
1. Registering Similar Business Lines
Some companies choose to register less restricted business lines which have been committed to open for foreign investors, such as market research or data processing. These services can sometimes serve as an entry point.
However, I always advise clients that this approach requires strict data compliance. All of your contracts and activities must align precisely with the registered business lines to avoid legal issues.
2. Partnering Through Call Center Outsourcing Contracts
A highly effective and lower-risk strategy is to enter an outsourcing agreement with an established Vietnamese service provider. This allows you to leverage a local partner's existing infrastructure and center agents.
This center outsourcing model enables you to test the market, refine your processes through quality assurance programs, and build customer relationships without the upfront capital commitment and regulatory burden of a direct center setup.
Key Success Factors For A Sustainable Call Center Operation
Establishing the legal entity is only the beginning. Long-term success depends on operational excellence.
- Compliance and Data Security: Ongoing adherence to Vietnam's regulations on data, telecom, and labor is non-negotiable. Implementing robust data security protocols is essential to protect customer information.
- Investment in People: The quality of your customer interactions depends on your people. Investing in human resources through continuous training programs is crucial for finding qualified candidates and developing a highly skilled center team.
- Technology and Analytics: Leveraging cutting-edge technology, including interactive voice response systems, improves efficiency. Tracking key performance indicators (KPIs) is vital for continuous improvement and delivering superior customer experiences.
- Customer-Centric Approach: Ultimately, the goal is to drive customer satisfaction. Every process, from handling inbound calls to analyzing customer feedback, should be optimized to strengthen customer care.
Turning Vietnam’s Regulations Into A Growth Opportunity
Vietnam’s potential as a call center hub is immense, but it is protected by a complex regulatory framework.
For foreign investors, this landscape demands strategic planning, patience, and precise execution. Those who prepare diligently can transform these hurdles into a significant first-mover advantage.
The key is not to view the regulations as a barrier, but as a filter that rewards serious, well-advised investors who are committed to long-term success.
Frequently Asked Questions
Why is setting up a call centre in Vietnam so complex for foreigners?
The primary reason is that call center services (Code 8220) are not included in Vietnam's market-opening commitments under the WTO. This means every foreign investment project in this sector must be reviewed and approved by multiple competent authorities on a case-by-case basis.
How long does the approval process for a foreign-invested call center really take?
Based on our experience managing hundreds of investment cases, the process can take anywhere from 6 to 12 months, sometimes longer. Unlike committed sectors that can be processed in weeks, the need for inter-ministerial consultation requires a much longer timeline to obtain approval.
Is it safer to just outsource to a local call center instead of setting up my own company?
For investors looking to minimize initial risk and achieve a faster market entry, outsourcing is an excellent and safe strategy. It allows you to utilize local expertise and infrastructure without the significant capital investment and complex legal process. Many of our clients use this as a first step before committing to a full foreign-invested entity.
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