Vietnam’s economy has grown dramatically over the last decade, and it’s no surprise that it’s now referred to as the “alternative to China.” Its popularity as the next best investment destination is only punctuated by its hungry new middle class, which is growing exponentially. Danang is Vietnam’s third-largest city, however, it’s one of the most attractive in terms of Vietnam’s Alternative Investing Destination due to its strategic position in the center of the country along the coast as well as its business-friendly policies.
Invest in Vietnam: Check out Cekindo’s Company Registration Services
A favorable business climate is one of the most compelling reasons for entrepreneurs to operate from Vietnam. The country has a vast majority of the working-age population with skilled and cheap labor, providing foreign businesses a shot at operating in an economically efficient way.
Furthermore, Vietnam’s entrepreneur ex-pat and startup culture are tremendous, with 70% of the country’s population under the age of 30, who are youthful, ambitious, and bright, with potential that is helping the economy climb new heights with time.
For the past three decades, Vietnam has effectively transformed itself from one of the world’s poorest countries to a quickly expanding economy with a growing middle-income population, according to the World Bank. IItsthree major economic hubs, Ho Chi Minh City, Hanoi, and Danang, have been pivotal in this transformation.
The policies and relaxations in regulations brought in by Vietnam’s government are only further bolstering the streaming FDI into the country, with the majority focusing on the industrial parks where investors are subject to a myriad of incentives and perks for incorporating there.
Danang’s Industrial Park is one of such significant endeavors to promote international investment. Let’s look at the prospects that lay in investing in Vietnam’s Danang Industrial Park.
Why Invest in Danang’s Industrial Park in Vietnam
For foreign investors, the prime benefit of setting up their business in Danang’s industrial park is the reduction in transportation costs and time due to its strategic central position in the country. This industrial park is well connected to several major regions, north and south, allowing for efficient transportation and distribution.
In terms of policies and facilities, industrial park initiatives in Danang have received great backing from Vietnam’s government and the private sector.
Danang’s industrial output and trade did very well in 2019, with the industry’s worth reaching around USD 78 million, a growth of USD 13 million in less than a year.
Furthermore, the industrial index increased by 4.25%, owing to industries such as energy generation and distribution, processing and manufacturing, waste treatment, and water supply.
Danang’s commerce activity grew dramatically in the same year, with total retail sales of products and services reaching about VND 100 billion. The Danang City People’s Committee has requested that the Prime Minister approve the building of three new industrial parks at a cost of over USD 652 million.
Moreover, according to a decision made by the local Municipal Party Committee, Danang intends to be among the top three performers in digital transformation, information security, and e-commerce by 2030, which is good news for investors.
The city is working on an e-governance model to deliver all online public administrative services at level 4; 60% of level 3 and 4 non-business services will be available on numerous digital platforms and will be supported on mobile devices, and all government agencies will give open data, according to OpenGovAsia.
How to Set up a Company in Vietnam
In order to start a business in Vietnam, foreign investors must first establish a corporation in the country. In Vietnam, the most frequent incorporation entity is a foreign-owned business, which allows for 100% foreign ownership.
You’ll need two certifications for a successful business start-up: an enterprise registration certificate and an investment registration certificate.
Enterprise Registration Certificate
This certificate, abbreviated ERC, is a document containing information about the registered business. A hard copy or a soft copy of an ERC is available.
Investment Registration Certificate
An investment registration certificate, often known as an IRC, is a soft copy document that provides all of the details about a registered investment project. This certificate is required for foreign investors who possess 51% or more of the charter capital of an investment project.
Process of Company Registration in Vietnam
- Cekindo requires a comprehensive and legitimate set of company registration paperwork from the business owner.
- In three business days, Cekindo reviews and confirms that all papers are complete and accurate, then submits the document to the appropriate authorities on behalf of the owner.
- The applicant will get a written notification. The grounds for the denial of the application shall be provided.
- Owners may be required to meet additional standards under Vietnam’s Enterprise Law and Investment Law, depending on the kind of business category.
Related: Everything You Need To Know To Set Up a Company in Vietnam
Starting a Business in Vietnam with Cekindo
The Vietnamese government, including the Danang authorities, has developed an excellent investment climate in which multinational companies may survive and prosper. Cekindo is your one-stop business setup consultant in Vietnam, and we can help you simplify the process of starting a business in Vietnam.
Company registration, business license, visa application, PEO, EOR, nominee arrangement, and other ancillary services are available to both domestic and foreign investors and enterprises.