Vietnam’s legislation doesn’t currently allow trusts. Nevertheless, most purposes of having a local trust can be achieved through different means. Similar legal structures are available through: estate planning, asset management contracts, and certain financial services. In this guide, our company formation specialists provide essential information on the available types of trusts or rather the equivalent structures in Vietnam.
| Quick Facts | |
|---|---|
| Support in creating a trust in Vietnam (YES/NO) | We can assist with the establishment of alternative structures, as trust creation is not possible. |
Availability of Trust Law | Vietnam does not have a Trust Law, but it has the Trustee Act, which provides for the offering of such services. |
Trust arrangements available | – revocable living arrangements, – irrevocable wealth transfer agreements, – nominee agreements, – family offices, – directed management contracts. |
| Features of revocable living arrangements | The revocable living arrangement is the equivalent of a living trust in Vietnam, which enables the settlor to control the assets. |
| Characteristics of irrevocable wealth transfer agreements | The irrevocable wealth transfer agreement is similar to the irrevocable trust, which does not allow the change of the content of the agreement. |
| Features of nominee agreements | Nominee agreements enable a foreign investor to set up a company under the name of a local registered agent. |
| When can family offices be used? | Family offices are service providers that can handle the estate of one or more families. |
| Features of direct management services | Direct management contracts enable settlors to use a custodian and an investment manager to administer an estate. |
| Other trust alternatives in Vietnam | Property entrustment contracts and investment trusts. |
| Is testament creation available in Vietnam? | Yes, wills can be used as an alternative to trusts. |
| Licensed trustee services availability (YES/NO) | Yes, such services are offered by licensed professionals only. |
| Possibility for Vietnamese citizens to create trusts in other countries (YES/NO) | Yes. |
| Possibility for Vietnamese to be beneficiaries in foreign trusts (YES/NO) | Yes. |
| Possibility to hold Vietnamese assets in a foreign-owned trust (YES/NO) | Yes, it is possible for settlors to keep such assets in a foreign-owned trust. |
| Requirements to comply with international laws (if any) | Yes, anti-money laundering rules must be respected. |
Table of Contents
Types of trusts structures in Vietnam
Vietnamese law does not explicitly recognize trusts as in common law systems. However, comparable structures exist, particularly in estate planning and wealth management services. The most common types of trust arrangements in Vietnam include:
- Revocable living arrangements (through contracts);
- Irrevocable wealth transfer agreements;
- Asset protection through nominee agreements or family offices;
- Charitable or educational funds under foundation law;
- Directed management contracts for investment purposes.
The fact that there are multiple legal tools for obtaining the results as owning a Vietnamese trust means that valuable legal advice can only be offered to clients after verifying each case. Legal advice is thus personalized for each client and might imply a few different contracts to be signed as well as certain legal entities to be incorporated. Of course, our Vietnamese company formation team can help identify the structure that best suits your goals.
The living trust in Vietnam
In Vietnam, a living trust equivalent can be created through a private asset management contract, established during the lifetime of the owner. This arrangement allows the grantor to retain control over their wealth while planning its future distribution. Key benefits of the living trust in Vietnam include:
- On-going control over assets during the owner’s life;
- Private transfer of wealth;
- Estate planning flexibility;
- More confidentiality and asset security.
These structures may be revocable, giving the grantor the option to modify or cancel the agreement during their lifetime. Our company formation specialists in Vietnam can assist with proceedings to set up a Vietnamese trust.
Here is also an infographic on this subject below:
Direct trust arrangements in Vietnam
Vietnamese investment structures similar to trusts in Vietnam can include directed management contracts, where asset control is split among multiple parties:
- A legal custodian who handles the administration;
- An investment advisor who makes financial decisions.
This structure similar to opening a trust in Vietnam is useful in:
- family wealth planning;
- foreign investment vehicles;
- cross-border asset management.
Our specialists can offer more information and support regarding company formation in Vietnam, especially establishing a Vietnamese trust.
Why choose our company formation experts
Setting up any form of wealth planning or trust structure in Vietnam requires compliance with local laws and an understanding of available legal instruments. Our specialists in Vietnamese company formation, legal structuring, and cross-border planning are here to assist you in creating a customized solution that meets your financial goals.
Data on Vietnamese investments
With strong economic growth and increasing foreign investment, Vietnam is gaining attention from international investors alike, as official data mentions:
- The Foreign Direct Investment (FDI) reached $37 billion in 2024;
- Vietnam Holding, a leading investment trust, reported a 16% rise in share price in January 2024;
- Export revenues had a total of $190 billion in 2024.
Furthermore, our specialists in company formation in Vietnam offer a broad spectrum of services related to corporate registration and business matters, like setting up a company in Vietnam from the beginning. For instance, you can benefit from the support offered by our accountants in Vietnam in the matter of taxation issues, annual registrar and payroll situations.
For more information and professional assistance in opening a trust in Vietnam, do not hesitate to contact our company formation agents.