The food and beverages sector in Vietnam is experiencing rapid growth. According to Statista, this sector will hit a US$ 559 million revenue in 2021, and its annual growth rate from 2021 to 2025 is expected to reach 5% — giving an estimated total market volume of US$678 million by 2025. Company registration is often required to start a business in Vietnam. And to start a food and beverages business, in addition to company registration, you must also have product registration in Vietnam. However, for enterprises engaging in food product selling, there is an alternative, undername importer/importer of record and local nominee arrangement.
Undername Importer or Importer of Record in Vietnam
An undername importer or importer of record is a legally registered Vietnam structure that helps with import and entry documents and requirements when a company wants to import goods or material to the country. The undername importer holds proper and legal permits and licenses to conduct companies and business owners’ import activities.
Companies use an importer of record in Vietnam because they can help with the provision of valid and complete customs clearance documents, tariff, fines, and duties payments, as well as product classification and certification. Simply put, an importer of record makes a business owner’s life easier as they don’t have to register a Vietnam company to deal with the tedious process.
Other benefits that an undername import agency can offer include the following:
- No need for the establishment of an import company in Vietnam
- You get to import from different countries with no legal complications
- You bear no customs risks such as penalties or delays of shipments even if you don’t have the required import and entry documents
- The clearance and shipment process is much simpler
- A fully compliant and transparent shipment and clearance process
Local Nominee Arrangement in Vietnam
Local nominee arrangement is a common business practice in Vietnam for foreign investors. For foreigners to use a local nominee arrangement to start a business in Vietnam, the process is relatively much more straightforward than incorporating a brand new import company.
On behalf of the real owner or beneficial owner, a local nominee (also known as a registered owner) will take charge of the business assets and carry out daily administrations via a loan agreement.
The main reasons foreign investors use this type of investment instrument are either they want to take part in business lines that are not open for foreigners or to remain anonymous to their competitors. Foreigners may utilise this mechanism when a business sector requires them to obtain specific special permits or licenses.
Although the local nominee acts on the beneficial owner’s behalf, the beneficial owner still has full control of the company, especially when arranging finances and preparing resources.
Here are some benefits of a local nominee arrangement:
- Investment process simplification, especially in restricted sectors for foreigners
- Anonymity advantage to avoid competition
- No legal and technical implications due to its locality
- Tax benefits for local companies
- Full control and rights of the company
How Cekindo can Assist with Product Registration in Vietnam
Cekindo’s local nominee arrangement, undername importer or importer of record services can provide you many benefits when selling food products in Vietnam. Our solutions save you a significant amount of costs and time as you no longer have to worry about setting up a brand new company or go through the long and tedious process of product registration in Vietnam.
The support Cekindo offers is entirely legal, and it is especially beneficial for foreign companies who are not familiar with the Vietnamese market and laws or are just getting started. With a nominee arrangement or undername import solution, you are still the one who is in complete control of your business rights, shares, operations, and decision-making.
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