Why should the representative office in Vietnam be upgraded?

A number of restrictions on representative offices may disadvantage their operations, namely:

1. Representative offices are not allowed to sign contract directly with any clients without valid power of attorney from the parent company;
2. Representative offices cannot directly issue financial invoices;
3. Representative offices cannot bid on projects that are for companies with permanent establishment status;
4. Representative offices do not enjoy tax, land or labor cost incentives;
5. Representative office cannot take advantage of the ASEAN Free Trade Area and Vietnam’s free trade agreements.