A prediction from S&P Global indicates that Vietnam’s economy will rise significantly in 2021, at least 10.9%, compared to an increase of 2.91% in 2020. This forecast growth figure is more than any Asia-Pacific country.
Due to its effective measures and successful control of the COVID-19 pandemic, Vietnam was the only one of the six countries that had seen economic growth in the challenging 2020.
Therefore, for foreign investors looking for profitable business opportunities amid the COVID-19 pandemic and in the post-pandemic world, Vietnam is your go-to investment destination.
Present Business Opportunities in Vietnam
The COVID-19 crisis has brought upon many challenges to global businesses, but it has also revealed various business opportunities that foreign investors can focus on. These business opportunities are also the sprouting of a wide array of startups in the following industries:
- Mobile commerce and digital wallet
- Real estate
- Delivery app
- Online teaching
How to Set up a Business in Vietnam in 2021
The legal entities available for foreign investors and entrepreneurs to set up a Vietnam company are of two types: limited liability company (LLC) and joint-stock company (JSC).
The below steps detail how you can set up a foreign-owned limited liability company in Vietnam – the most common type that most foreigners opt for:
1. Obtain an Investment Registration Certificate (IRC)
Applying for an investment registration certificate at The Department of Planning and Investment is mandatory. It takes approximately a month for the entire IRC registration procedure, including the certificate issuance.
However, if a foreign company’s business category is not under the regulation of the World-trade Organization’s agreements or Vietnam’s local laws, the IRC registration process will take much longer. These foreign companies of specific business lines will need approval from the particular ministries.
2. Apply for an Enterprise Registration Certificate (ERC)
A business registration certificate in Vietnam is also one of the foreign company setup’s requirements. Vietnam’s Department of Planning and Investment is also the authority that issues the ERC.
3. Register Tax and Pay Business License Tax
The company tax number is the number of business license certificates. Every company in Vietnam must pay taxes, submit tax reports, and declarations via an electronic system. Access to this online system is only possible when businesses in Vietnam obtain an electronic signature.
4. Contribute to the Capital
Once you have received your BRC, you have to submit your capital contribution within 90 days starting from the receipt date of the BRC. Fines apply when you fail to meet the deadline and are unable to pay for the capital.
5. Obtain Other Applicable Permits and Licenses
Some business lines require specific licenses and permits to operate. Some examples of the business lines that need sublicenses and special permits are logistics, manufacturing, lodging, recruitment, trading of particular services or products, and several other business categories.
Setting up a Business in Vietnam Hassle-free with Cekindo
Cekindo is here to help global investors and entrepreneurs successfully set up a business in Vietnam. We want you to have a growing and sustainable business with our expert business advisors’ guidance, practical and easy-to-implement.
Whether you are registering or setting up a company in Vietnam or want to get help for legal work for your current business, Cekindo has all the support you require at every stage – all in one place. For anyone who is thinking of starting a new business in Vietnam or a business owner, Cekindo’s experts are here to push your business towards success.
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