Posted 9.09. 2020 by Cekindo / Last update on 22.10. 2020
Vietnam, strategically located in Southeast Asia, is an ideal international business hub for foreign investors looking to start their next business venture or establish a startup.
If you are interested in expanding your business to Vietnam, this is a must-read article about the 5 important things you should know before starting your business in Vietnam.
Vietnam has many inherent advantages as an investment paradise and they become the reasons for a great number of foreigners starting a business in the country.
Foreigners wishing to set up a Vietnam can choose a legal entity with 100% foreign ownership or a joint venture.
Both of the business entities have their shares of pros and cons. However, a company with 100% foreign ownership is the most common option for investors.
For example, with a 100% foreign ownership company, you have freedom in how your business operates without the restriction from a local partner or the interruption from a Vietnamese State.
However, without a Vietnamese partner, your access to natural resources in Vietnam is more difficult.
As for joint ventures, they allow you to have better access to local resources and earn significant market share faster. Plus, you will have more understanding of the social, cultural, economic attributes of Vietnam with a local partner.
One drawback is the possible challenges between you and your Vietnamese partners due to customs, business culture, and language differences. A joint venture is also under the control of the Vietnamese State.
All foreign investors must acquire an investment certificate before you can run your Vietnam startup. The investor is the legal person and is required to declare all foreign direct investments.
The requirements for obtaining an investment certificate in Vietnam vary, depending on the type of investment project that has to go through an investment evaluation procedure.
In addition to an investment certificate, you shall then apply for a registration certificate for your company registration. The process of company registration is almost the same for both 100% foreign-owned companies and joint ventures.
All foreigners setting up either type of company must submit their application to the planning and investment department where their company is located.
These innovative workspace solutions enable entrepreneurs to enjoy great flexibility in terms of location and time, low costs, advanced technology, and scalability.
Establishing a Vietnam startup is possible for almost any foreign companies and individuals.
Cekindo is a professional business consultant in Vietnam specialised in the registration of foreign businesses, application of certificates, outsourcing, and flexible workspace solutions.
We will assist you from the consultation stage regarding the correct type of legal entities, relevant permits and certificates, power of attorney, bank account opening, notarised translation, tax registration, and even visa and work permit application for your foreign directors and employees.
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