Vietnam Market Entry Strategy

How to set up Business in Vietnam?

Vietnam's sound economic growth for the past two decades and a huge inflow of foreign direct investment have brought the country to the centre stage as an attractive region for setting up an industrial base. The surplus manufacturing capabilities of this country have catapulted the semi-finished and finished goods export. To legally carry out business activities in Vietnam, foreign investors must register their investment with the appropriate licensing authorities. Under the new Law on Investment and Law on Enterprises, foreign investors now go through the following steps:

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  Select the location for the business

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  Obtaining an investment registration certificate

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  Obtaining an enterprise registration certificate

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  Public notification in local newspapers

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For a branch office or a representative office the you will have to obtain RO/Branch license and Seal/Tax Id registration. As part of the setup procedures, various types of documents will be required depending on the kind of company/business activities that are being set up, etc. All legal documents issued by overseas authorities must be translated into Vietnamese and must be validated by the Vietnamese Embassy in the home country of the investor.

Here are a few tips on planning, legal issues, hiring, immigration, and taxes & an overview of Vietnam market that would help you to build a expansion strategy for your business.

Top 3 Sectors for Investment in Vietnam

Vietnam is one of the most aggressively growing economies in the world. The strong growth in food processing, automotive, building infrastructure, transportation, and logistics sectors is happening at a breakneck pace. Factors like favorable investment policies, demographics, low cost of doing business, and strong diplomatic ties help sustain growth in trade and industry. Here are the top three potential sectors for investment in Vietnam:

DOWNLOAD THE VIETNAM MARKET ENTRY REPORT FOR FREE

Vietnam is offering a variety of tax benefits for entities doing business in its country. New investment projects can enjoy tax incentives based on the sector, location, and size of the project conducted. To facilitate the industrial and processing industries, the government has made Economic zones and industrial parks in the country. This has expedited the manufacturing sector's growth, especially energy, food processing, rice, sugar, tea, coffee, mineral exploration, manufacturing, IT, and automotive components. You can find a detailed report covering different facets and market intelligence related to Vietnam here.

Visa and Immigration

The Investor (DT) visa for Vietnam is a type of visa granted to foreign investors in Vietnam and foreign lawyers practicing in Vietnam. Entry, exit, transit, and residence of foreigners in Vietnam Investor Visa is categorized into:

Visa DT1 – to be granted to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution of at least VND100 billion ($4.3 million), or investing in the business fields and areas of investment incentives decided by the Vietnam Government. Valid for up to 5 years.

 

 

Visa DT2 – to be granted to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution of VND50 – under VND100 billion ($2.15 – 4.4 million) in the business fields of investment encouragement decided by the Vietnam Government. Valid for up to 5 years.
Visa DT3 – to be granted to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution of VND3 – under VND50 billion ($1,32,000 to $2.14 million). Valid for up to 3 years.

 

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