Consider expanding your business to Vietnam, a booming tech hub with friendly locals, a low cost of living, and promising economic growth. Despite COVID restrictions, the country continues to see remarkable expansion. To establish a company in Vietnam, navigate the process by understanding local regulations, finding suitable business partners, and securing necessary permits. With strategic planning, the Vietnamese market offers lucrative opportunities for potential success. Here is an initial roadmap for opening a business in Vietnam.
1. Conducting research
Before embarking on your venture into setting up a company in Vietnam, thorough research is essential. Many experts advocate for a preliminary visit to Vietnam as a tourist to gain insight into the culture and immerse oneself for at least a month before initiating the company formation process. This hands-on approach allows for a deeper understanding of the local business environment and cultural nuances, which can significantly contribute to the success of your enterprise.
Moreover, considering the widespread proficiency in English among Vietnamese individuals, akin to other Asian countries like Thailand, India, Hong Kong, or China, language barriers may not pose a significant obstacle. Supplementing how to open a business in Vietnam with literature such as “Startup Vietnam” by Andrew Rowan or “Crossing the Street: How to Make a Success of Investing in Vietnam” by Andy Ho can provide invaluable insights into the intricacies of Vietnam’s business landscape, aiding in making informed decisions throughout the setup process.
2. Line of business
To set up a company in Vietnam, you need to determine your business activities beforehand and apply for the relevant business licenses, bearing in mind that some are restricted to foreigners. Each business line requires a specific initial capital investment, which is assessed individually by local authorities. Once granted a business license, you must contribute the capital within 90 days.
3. Consulting with a lawyer
Personal connections hold significant weight in Vietnam, where laws can be subject to interpretation based on location and the individual applying. Success often hinges on securing a reputable lawyer, typically found through personal recommendations rather than online searches. Navigating applications independently requires fluency in Vietnamese and extensive paperwork.
Opting for an investment visa
The investment visa route offers a straightforward path for eligibility, requiring investment in a business in Vietnam. The duration of the visa can vary based on investment capital, with higher amounts potentially extending the period up to 10 years, reaching a maximum with an investment of USD 5,000,000.
Premia TNC’s assistance to Opening a business in Vietnam efficiently
Opening a business in Vietnam has become increasingly feasible, especially with the rise of remote procedures amidst the pandemic. The process involves identifying your desired business sector and engaging reputable legal counsel to navigate the necessary procedures. Whether you are eyeing Vietnam or other Asian markets, our team stands ready to provide expert assistance in establishing your business presence. Reach out to Premia TNC for comprehensive support tailored to your needs.
4. Applying for IRC
To invest in Vietnam, obtaining an Investment Registration Certificate (IRC) is imperative for any foreign business, regardless of ownership percentage. The application process necessitates demonstrating a specified capital investment, supported by bank statements reflecting the availability of the required funds. Additionally, if forming a partnership, decisions regarding ownership distribution (e.g., 50/50, 60/40) and delineating business lines are pivotal, impacting the maximum capital contribution permissible in the joint venture.
In essence, securing an IRC entails furnishing evidence of capital investment, such as bank statements, alongside decisions regarding ownership distribution and business lines, particularly crucial for joint ventures. This certification is indispensable for foreign businesses seeking to invest in Vietnam, serving as a gateway to engagement in the country’s economic landscape.
5. Applying for ERC
After obtaining your Investment Registration Certificate (IRC), the next step is to apply for an Enterprise Registration Certificate (ERC), which typically takes one week for approval. The ERC allows you to utilize your investment to establish a company in Vietnam. With the ERC, you can proceed to obtain your company stamp, sign, and open a bank account for your company in Vietnam.
6. Applying for a visa
After obtaining your ERC, the subsequent step involves applying for visas to facilitate your long-term stay in the country. Permanent residency is only feasible for those born Vietnamese with access to a Vietnamese passport and family books. Instead, temporary residence and visa renewals are attainable through two avenues while employed by the company.
Opting for a labor visa
The labor visa route offers a pathway to obtain a temporary residence card valid for 2 years, allowing individuals to apply for work within their own company, setting their own salary and work contract to fulfill the requirements for the card. Recent legal changes may necessitate demonstrating either a Bachelor’s degree or three years of management experience, reflecting tightened regulations. However, as Vietnam gradually reopens to the world, these requirements may evolve in the future.
