How to Start a Trading Company in Vietnam

Looking to start a trading company in Vietnam? This article discusses the requirements and how to establish one.

Foreign investors understand that Vietnam offers fascinating business and investment opportunities. Owing to the government’s substantial support and trade agreements, as well as the increasing middle-income groups and changing consumer lifestyles, Vietnam’s trading industry has become an interesting market for international investors. An increasing number of foreigners are entering Vietnam to invest in trading companies thanks to the country’s favorable economic landscape. In this article, we’ll discuss the prerequisites and procedures to start a trading company in Vietnam.

Read About InCorp’s Company Registration Services in Vietnam

Requirements to Establish a Trading Company in Vietnam

Business Structure of Your Trading Company

If you are considering the establishment of a 100% foreign-owned business in Vietnam, you will have four distinct options to explore:

Minimum Capital Requirements

In the establishment of a trading company in Vietnam, it is noteworthy that there exists no official minimum capital requirement. However, in accordance with the provisions delineated in the Enterprise Law, it is incumbent upon the entity to remit the entirety of its charter capital within a ninety-day timeframe subsequent to the issuance of the business registration certificate.

To ensure a judicious commencement of operations and sustained business activities over the course of a year, it is imperative that prospective entrepreneurs ascertain the adequacy of their capital resources.

Read Related: Minimum Capital Requirement in Vietnam For Foreign Companies

Business Plan for Your Trading Company

Before embarking on the journey of establishing a trading firm in Vietnam as a foreign investor, it is imperative to craft a comprehensive business plan. This plan should encompass essential details such as:

  • Trading Company’s Business Activities
  • Strategies and Operational Methods
  • Business and Market Development Plan
  • Workforce and Labor Utilization
  • Efficacy and Feasibility Review

Read More: A Step-by-step Guide to Making a Business Plan when Doing Business in Vietnam

Trading Company’s Financial Plan

Before setting up a trading company in Vietnam, the authorities will review the financial plans in addition to the business plans.

The following are some key points and documents that a financial plan must include:

  • Funding plans and sources
  • Capital Representation
  • Relevant financial documents
  • Income statement based on the latest audited financial statement (only for a trading company that has been incorporated for a minimum of 12 months)

Related: All You Need to Know About Compliance with Financial Statements in Vietnam

Procedure to Set up a Trading Company in Vietnam

The incorporation of a trading company in Vietnam can be broken down into four steps:

1. Obtain an Investment License

Initiating the setup process of a trading company in Vietnam mandates foreign investors to commence by applying for the investment registration certificate (IRC). This application entails the submission of essential documents such as a comprehensive business plan, passport copies of the company’s proprietors and directors, address verification, and financial capacity proof to the Department of Planning and Investment (DPI).

Upon obtaining the requisite approval, the DPI proceeds to issue the IRC. This pivotal document facilitates the subsequent acquisition of the investment license, ultimately authorizing the company to lawfully conduct its business operations within Vietnam. The DPI typically completes this process within an approximate duration of a month.

Read: Your Easy Guide to Investment Registration Certificate (IRC) in Vietnam

2. Acquire a Business Registration Certificate

Securing the Enterprise Registration Certificate, alternatively referred to as the Business Registration Certificate, constitutes the subsequent phase. The Department of Planning and Investment is the governing body responsible for the issuance of this pivotal certificate.

Remarkably, this certificate can be acquired expeditiously, typically within a concise span of 7 working days. It is imperative to note, however, that within a stipulated window of 90 days following the certificate’s issuance, the initial financial investment must be effected.

See InCorp’s Company Registration Services in Vietnam here

3. Apply for a Trading License

The application for a trade license is the third stage in establishing a trading firm in Vietnam. A trade license application requires the submission of relevant papers and the completion of an application form to the Department of International Trade. Following this, the department will dispatch an official letter to the Ministry of Industry and Trade, and you must subsequently file it.

The Ministry of Industry and Trade will determine whether to approve or reject your application after obtaining the official letter. If required, they may also seek further documentation. Within 7 working days of receiving the granted application, the applicant should obtain their trade license.

4. Product or Sale Approval Registration

It is imperative to ensure the legal aspects of the products and services one wishes to sell in Vietnam. Moreover, while selling products, ensure to have the official product registration done as per the law.

One can begin importing products with their trading company once they have completed all of the preceding procedures. Please note that the restrictions for export and import in Vietnam must be understood thoroughly. It’s recommended to double-check that all of the shipping paperwork is up to date.

We have meticulously crafted an extensive step-by-step guide for investors, offering unparalleled insights into the process of establishing a business in Vietnam.

Discover our comprehensive guide, now transformed into an interactive checklist for your convenience.

InCorp Vietnam Business Setup Checklist

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Ian Robin Comandao

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Ian Robin Comandao

Ian Robin Comandao is the Head of the Business Consulting Department of Incorp Vietnam. He is a Sales and Marketing professional with 15+ years of experience in key accounts management.