Vietnam has one of the strongest economies in Southeast Asia region and offers many advantages for global companies and investors. Starting a business in Vietnam can be relatively simple, thanks to the recent open policy and fewer barriers for foreign investors to enter Vietnam.
However, you can only ensure your business in Vietnam will run successfully by getting yourself familiar with the local regulations and necessary legal assistance from the expert.
In 2007, Vietnam became one of the members of the World Trade Organisation (WTO). This big step has definitely opened the door for many global investors and businesses looking to expand their businesses in Vietnam.
In accordance with Vietnam Company Law, investors are free to choose their fields of investment, company structures and capital funding methods, as long as all these steps comply with the relevant laws and regulations set out in the country.
In this guide, we will provide you with some insights on how you can start a business in Vietnam and what is ahead.
However, we need to emphasize that this can only serve as a brie guide as laws and regulations in Vietnam may change from time to time. To avoid regulatory conflicts and misinterpretations, we highly suggest that you talk to our legal consultant at Cekindo for more details.
Types of Businesses in Vietnam
Setting up your business in Vietnam can be both exciting and challenging. In addition to being prepared, you will first need to know the types of business and business structure in Vietnam.
For foreign investors, three common business structures in Vietnam include the following:
- Foreign-owned company with 100% ownership (sole proprietorship or partnership)
- Joint venture enterprise
- Business cooperative
In addition, foreign investors are encouraged by the government of Vietnam to invest in the following sectors in Vietnam:
- Goods production for export
- Animal husbandry and farming; processing of agricultural, aquaculture and forest products
- High technology utilisation and modern manufacturing techniques
- Research and development
- Ecological environments protection
- Labour-intensive fields
- Raw materials processing
- Natural resources utilisation
- Infrastructure facilities constructions and industrial production establishments
- Investments in remote and mountainous regions
- Investments in difficult economic and social conditions regions
Foreign investors must bear in mind that not all types of business in Vietnam are open for foreign investments. Some businesses related to the following natures are closed to foreign participation:
- National security
- National defense
- Traditions and customs in Vietnam
- Historical and cultural preservation in Vietnam
- Natural environment in Vietnam
Required Documents to Set up A Business in Vietnam
To establish a business in Vietnam, you must submit the following documents to relevant authorities in Vietnam:
- Authorised business representative’s personal identity card or passport
- Incorporation certificate
- Company’s articles of association
- Previous 12-month audited financial statements
Currency Restriction for Businesses in Vietnam
All money that belongs to the established business in Vietnam has to be converted into Vietnamese Dong or transferred into a Vietnamese-based foreign currency bank account.
Certain restrictions apply when a foreign business wants to transfer money out of Vietnam. Please seek professional advice from Cekindo regarding the restrictions.
How Cekindo can Assist with Business Setup in Vietnam
Starting your own business in Vietnam can be easy and a life-fulfilling adventure if you have the right resources. Cekindo is at your service to provide you with legal advice and guide you through the regulatory steps involved in the process.
Whether you are a small business or a multinational corporate ready to expand in Vietnam, Cekindo offers you suggestions to choose the right company structure and subsequent business consultation to start your own business in Vietnam.
Send us an enquiry now and our expert consultant will get back to you within 24 hours.