Find this video below where 🎥 I share with you everything you need to know if you want to start a business in Vietnam 👇. The Department of Planning and Investment is the authority that determines the amount of capital required in the field of activity for foreign investors. If you want to see how tax incentives could potentially affect your business in Vietnam, just read our overview of tax incentives in Vietnam. Notably, Decree No. 22/2020/ND-CP, which enters into force on February 25, 2020, offered the BLT tax exemption in the first year for newly established companies, BOs, branches, business premises established during the tax exemption course, general education enterprises, households or individuals for the initial establishment of enterprises in Vietnam and SMEs (three-year exemption under certain conditions). At this point, you have gained a basic understanding of the Vietnamese business context and it is up to you to decide what to do next. In general, you will need certain documents to complete your business installation in Vietnam. The documents depend on the business structure you choose. Vietnam is a growing economy and is expected to be one of the largest economies in Asia by 2050. It has an economic growth of 4% to 8%. This is a big difference from many developed countries, which are now experiencing slow or even stagnant growth. Another reason to settle in Vietnam now is the increase in the purchasing power of the middle class. This means that you will expect more and more customers and/or users.

If you are a business owner (being a shareholder or working for your company), you can sign an employment contract, pay your taxes and obtain a residence permit. It is therefore a sustainable solution to work in Vietnam, to be officially registered as a resident, to pay your taxes and to be able to live there for several years. Your business license certificate number also serves as your company`s tax number for the tax department of the Vietnamese Ministry of Finance. You will also receive a digital signature that will allow you to access the online portal to pay your taxes. Before we dive into the details of Vietnamese foreign companies, it is best that we first give you a brief overview of why Vietnam is currently an investment paradise. To illustrate these concepts, let`s take a look at 5 business areas and opportunities that have been booming in Vietnam in recent years. As provided for in Vietnamese trade law, foreign companies can also establish their presence in Vietnam in the form of a branch or representative office. BCC is a legal agreement between investors on cooperation to conduct business activities and profit sharing. Investors often use this type in certain sectors such as oil or telecommunications. It is not a common form of foreign direct investment and is only permitted in a few sectors. The local branch could mean that it is a franchise of a foreign company in Vietnam. Common examples would be clothing chains or food chains.

This type of enterprise allows investors to carry out business activities in Vietnam. Need more information about starting and starting a business in Vietnam? Contact our economic expert Recently, the Investment Law of 2021 added new “conditional business investments” while eliminating sectors such as commercial arbitration or logistics. Note: In addition to investments made by foreign investors or foreign investors or foreign-owned companies representing more than 51% of the company`s charter capital, the requirement to obtain IRCs is not necessary for other business owners. Knowing what types of businesses are available to you will help you better understand what suits your needs. It will also help you not to get too many fees due to your investment in Vietnam. Trying to start a business is difficult, but not knowing the language and not having a wealth of information about the types of Vietnamese foreign companies can make things worse. Retail businesses, of course, need a sales space where you will sell your goods. You will need a physical address ready when you register. So you searched around to find the best country and city to grow your business and found that Vietnam was a good choice because of its economic growth. Maybe you`ve been living in Vietnam for a while and want to have your own business and leave expat life. Having your own business is great for giving you financial freedom, but it also has its difficulties.

In a foreign country, this is even more difficult and you can be susceptible to many scams and mistakes. In rare cases where a company is not covered by WTO guidelines or local laws, you will need to contact the ministry responsible for that industry, which can make this process longer and more laborious. Some restrictions on owning a business in Vietnam can be found in the following documents: Contact one of our friendly advisors and get practical tips for your business! There is no fixed minimum capital requirement for foreign investors to start a business in Vietnam, with the exception of certain conditional business areas. Whatever business structures you operate in Vietnam, you have to pay your taxes. The main advantage of a local company is that you can get your foreign company registered in Vietnam faster. Yes! You can start a business in Vietnam as an outsider through foreign direct or indirect investment. Note that any foreign ownership of companies is regulated by the World Trade Organization. Some countries also have trade agreements with Vietnam. However, these rules only apply to certain industries. As mentioned earlier, for most industries, there are no minimum capital requirements to start a business in Vietnam. Specifically, however, the Vietnamese government requires that a new company have “sufficient capital.” This means that you need to have enough capital to cover your expenses until the business becomes self-sufficient. We note that most businesses open with about VND230 million ($10,000).

Still, we`ve also seen a few small businesses open with just 69 million VND ($3,000). In any case, the planning and investment department will review your capital to make sure it`s enough to get your business off the ground. This capital is recorded on your business certificate, and any change in your capital requires changes to your business documents. Article 6 of the Investment Law (2020) (LAW) prohibits foreigners from carrying out certain business activities in Vietnam. Read on to learn more about common forms of business investment and important considerations when starting a business in Vietnam as a foreigner. Fortunately, there are no minimum or maximum capital requirements to start a business in Vietnam (with a few exceptions), making market entry extremely accessible. You can also invest in your business using any currency to ensure maximum flexibility. Whether you intend to form an LLC or a joint venture, a head office is mandatory when setting up a business in Vietnam.

It also depends on the sector of activity or the type of business you want to register in Vietnam, whether or not you need to have a co-owner as a Vietnamese. There are mainly six main types of business licenses in Vietnam. In practice, it can be useful to have a Vietnamese partner on board, especially for some limited and difficult areas of activity with possibly some “bureaucracy”. For example, if you are starting a business in Vietnam as a bar or school, it may be easier to have a Vietnamese partner. But it is not mandatory. If you have a simpler field of activity such as consulting or catering or retail, IT, software development, it is very important to have a good lawyer and accountant, whether you have a Vietnamese partner or not. Starting a business in Vietnam involves many questions to consider, as well as various factors to determine. Details of these questions can be found in the next section.

I will share with you the benefits of investing in Vietnam and starting a business, how to avoid mistakes that ruin your chances of a flexible and sustainable structure that endures, the hottest industries you can enter. I digest for you the different types of structures, the advantages and disadvantages and those I recommend for your situation. In reality, the total cost depends on the structures of your company. Additional costs to consider may include: Licensing for local businesses is not mandatory. Only certain types of businesses are required to have it. Check if your business falls into this category. You are not limited to activities with “conditional business investments”. However, you need to meet certain criteria to access the Vietnamese market.

In this article, you will find a practical guide to starting a new business in Vietnam. We have also summarized some key factors of the Vietnamese business context that you should consider. Let`s find out! If you want to start a business in Vietnam in 2021, you are in good company – Vietnam is one of the fastest growing economies in the world with GDP growth of 4.48% in 2020. So it`s no wonder Vietnam is incredibly popular for those looking to start a business – the prospects are good and the local middle class is considered the fastest growing in Southeast Asia. In most cases, foreign investors doing business in Vietnam may have a 100% foreign stake in the share capital of a Vietnam-based company. However, if the foreign investment is made, for example, in a Vietnamese bank, the total foreign property of the investor should not exceed a ceiling of 30%. 💡 Many of you have asked me for information about the type of business I run in Vietnam. And of course, since I`ve been living there for several years, I decided to record an in-depth video on this topic. Do you want to start a business in Vietnam but feel overwhelmed by the challenges and difficulties that await you as a foreigner? We`re here to help you move forward.