Many international companies, including China companies, and Vietnam’s importers have gradually shifted their production from China to Vietnam due to the intensifying US-China trade war.
Not only does it benefit Vietnam greatly as the manufacturing market is thus burgeoning, but it also allows business owners to save more costs with the same or better quality and outputs.
Currently, Vietnam is not just a great place for manufacturing textiles and footwear, but it is also home to electronic manufacturing, machinery manufacturing, and automotive manufacturing.
Thanks to its manufacturing expertise and capability, low-cost workforce, industry maturity, and efficient logistics and infrastructure, Vietnam has topped many countries to become the go-to region for manufacturing businesses.
That’s why more and more big brands are moving their productions to this dynamic country. Take Nike for example, Vietnam has been the principal manufacturer for Nike footwears since 2010 – producing 47% of all Nike’s shoes in 2018 while China is only producing 26% of them.
This is absolutely a good time for investors to enter the manufacturing market in Vietnam. We will tell you how in this article.
Available Legal Entity Options
There are two common types of legal entity options for manufacturing company setup in Vietnam:
- Joint-stock company: a more complex structure optimal for medium to large-sized companies
- Limited liability company: one to fifty members, suitable for small to medium-sized companies
Requirements and Procedures for Company Setup in Vietnam
The positive growth of the manufacturing sector is urging numerous investors to enter the market in Vietnam. You can do this by starting a manufacturing company.
Here are the requirements you need to be aware of to set up one:
The foreign ownership for manufacturing companies is set at 100% in Vietnam. In other words, a foreigner can have a fully foreign-owned manufacturing company.
Minimum Capital Requirement
Generally, there’s no fixed minimum capital requirement for setting up a manufacturing company in Vietnam, as long as your proposed capital is realistic for your planned business activities.
Steps for Setting up a Manufacturing Company in Vietnam
The average time taken to accomplish the entire company setup process is approximately four months:
- Decide on the factory’s location. The factory’s location can be outside or within industrial parks, high-tech zones, economic zones, and export processing zones.
- Get the investment registration certificate regarding the chosen location and investment project from Vietnam’s Department of Planning and Investment. This process takes one to three months.
- Obtain the business registration certificate from the same department and receive it within 3 days.
- Contribute to capital within 90 days upon the issuance of the business registration certificate.
- Extra licenses may be necessary depending on your manufacturing product types, business lines, and if the process would cause environmental impact. These additional licenses take 10 to 30 days to complete.
How Cekindo Can Assist with Manufacturing Company Setup in Vietnam
Vietnam attracts investments in various industries including the manufacturing sector. The government has also implemented investor-friendly policies that can make your ventures as smooth as possible.
However, as a foreigner, you must understand the type of business and activities that are permitted under Vietnamese laws. Being prepared and obtaining professional advice can be beneficial for you, allowing you to achieve your business goals effectively in the shortest time.
Cekindo’s team of committed and talented professionals can help local and international clients to get ready for the complex paperwork. We also assist in submitting the applications and obtaining required licenses and approvals for company setup in Vietnam.
You can get in touch with Cekindo to get expert advice for your company setup in Vietnam. You can contact us by filling in the form given below. Our business consultant will get back to you with regard to your queries promptly.