Making an investment in Vietnam has been a popular undertaking for many foreigners. The majority of investments in Vietnam lie in the private markets, especially in sectors that have gained traction in recent years. Apart from its tourism, Vietnam used to be a country that many people do not think much about in business terms. However, this has changed since the 1990s. Among the six largest ASEAN nations, Vietnam has been ranked the third most active startup ecosystem, following Singapore and Indonesia.
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Vietnam has so much to offer culturally and financially. It’s not only one of the fastest-growing economies in the world, but it has also one of the largest increases in foreign investments compared to the other Southeast ASEAN countries. All has to do with the cheap manpower, low business costs, new and emerging markets, governmental initiatives, etc.
The growth of Vietnam’s GDP is also recorded at 7% annually. Many foreigners are now eyeing the markets they believe will bring them the most return-on-investment.
How to Make an Investment in Vietnam
Before anything else, you should give a thought about the type of legal entity you would like to set up to make an investment in Vietnam.
The following covers some common options that most foreigners go for:
1. Establish a New Company
Investing in Vietnam through the establishment of a new entity is ideal when investors want to have a solid presence in Vietnam. In general, you can choose between a limited liability company (LLC) or a joint-stock company (JSC).
To establish an LLC or a JSC, investors shall register an investment project. You will only get an investment registration certificate when the authority has approved your project. Then, you should proceed with obtaining the enterprise registration certificate to officially set up your new company.
2. Establish a Representative Office or a Branch Office
An investment in Vietnam is also doable by setting up a representative office or a branch office. These structures only permit certain business activities and are not separate from their parent company.
A representative office is prohibited to engage in commercial activities that bring in income. Also, only particular types of businesses can open their branches in Vietnam when they have been doing business in their specific fields for at least five years.
You can read more about Representative Office vs. Branch Office in Vietnam
3. Purchase a Shelf Company
You can purchase a shelf company as your investment in Vietnam and do business right away. A shelf company is a ready-made company that allows you to start your business operations immediately.
4. Engage a Professional Company Providing Professional Director/Shareholder/Commissioner Services
An alternative for investing in Vietnam is to engage a local nominee company, also known as the above.
The nominee structure makes running a local company by foreigners possible, especially when certain business sectors are closed to a foreign company. In this structure, a local nominee will act on the foreigner’s behalf to hold the company’s assets and perform daily administrations. The foreigner’s rights are protected through a loan agreement.
Invest in Vietnam with Cekindo’s Assistance
Investing in Vietnam has never been easier with Cekindo’s assistance. Cekindo has designed a simple and intuitive company incorporation process for foreign individuals and businesses to invest in Vietnam.
We will handle all the paperwork and liaison with the authorities on behalf of you, ensuring that the company registration process is completed accurately. Thus, there will be no delays in getting your company set up and you will be ready to grow your investment in Vietnam in no time.
Cekindo provides a seamless, worry-free experience to form your business and invest in Vietnam. Start with your company registration today. You can also get the most insightful information related to investment and company formation in Vietnam from our incorporation specialists.
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