Vietnam’s increasing demand for high-quality raw meat, combined with supportive regulations and minimal competition, presents a lucrative opportunity for foreign investors seeking to enter the importation and distribution market. However, potential investors must navigate challenges such as infrastructure limitations, cultural differences, and the specific requirements for establishing a business in Vietnam.
In this article, we offer detailed insights for foreign investors looking to start a successful raw meat import and distribution business in Vietnam. Firstly, we cover essential conditions and requirements. Additionally, we outline crucial steps to help you navigate the process effectively. Whether you’re a seasoned investor or new to the industry, this guide will equip you with the knowledge needed to thrive in this growing sector.
Steps to Import and Distribute Raw Meat in Vietnam
Importing raw meat into Vietnam involves three essential steps:
Step 1: Establish a Trading Company
Step 2: Import Your Products
Step 3: Distribute to the Market
Step 1: Establish a 100% Foreign-Owned Trading Company
In Vietnam, registering your company for trading activities is essential if you plan to import goods and engage in wholesale operations. Moreover, this registration allows for business-to-business (B2B) sales by default. However, if you’re looking to sell directly to consumers, you must obtain a Retail License.
To start a business in Vietnam, you’ll first need to secure two essential documents: the Business Registration Certificate (BRC) and the Investment Registration Certificate (IRC). Furthermore, the Department of Planning and Investment issues these certificates. Generally, the entire process usually takes about 4-6 weeks, or 30-45 days, to complete.
The great news is that the registration process is simple and user-friendly. You only need to meet the standard requirements to get started. These essential requirements include:
Business Address Requirements
Every business in the country is required to have a registered business address. When setting up your business, you can choose between a virtual address or a physical address. Selecting the right business address is crucial for compliance and can impact your visibility and credibility.
Using a residential address as your business address is prohibited by Vietnamese law. It’s essential to exercise caution when someone suggests using their home address for business registration. Ensure compliance with the legal requirements to avoid potential issues.
A Legal Representative
To start the company registration process in Vietnam, it’s crucial to have a designated legal representative. This representative can be a Vietnamese resident or a foreign national, including yourself. However, they must have a permanent address that meets the residency requirements.
Capital Investment
When starting a business in the trading industry, it’s essential to register with a reasonable amount of capital, even though there is no legal requirement for a fixed sum. The trading sector, for instance, often requires substantial funds for activities like importing goods, storing inventory, and managing daily operations. Therefore, by ensuring you have a fair amount of capital registered, you can ultimately provide your business with the necessary financial resources to operate smoothly and effectively.
After obtaining 2 certificates there are a few more steps to complete the registration process which include:
- Make the company stamp/seal
- Open your company bank account
- Inject committed capital
- Tax registration
Đọc thêm: 10 steps to have a company opened and ready to run in Vietnam
Step 2: Importing Raw Meats into Vietnam
After successfully registering your company, the following step is importing meats into Vietnam. This procedure would follow the below steps:
Eligible Raw Meat Exporters
To successfully import raw meat into Vietnam, the first step is to ensure your chosen exporters are authorized to do so. According to Vietnamese regulations, only exporters from a list of 24 approved countries are allowed to import meat into Vietnam. Each of these countries has designated companies authorized for meat export. By selecting the right exporter from these approved companies, you can navigate the import process more smoothly and comply with local regulations.
If your preferred exporters are not on the approved list, you can request permission from the Ministry of Agriculture and Rural Development to have them approved. However, keep in mind that this process can be time-consuming and may be denied. To save time and ensure compliance, it’s best to choose exporters who are already on the approved list.
Determine the HS Code
To facilitate a seamless import process, accurately defining the HS code for your products is vital. The HS code is crucial for determining import taxes and is required for correctly completing the Customs Clearance form. For raw meat products, the designated HS code is 0202. Paying close attention to these details is essential to avoid potential delays or penalties in the import process.
Certificate of Food Safety
For businesses involved in food and related products, obtaining a Certificate of Food Safety is an essential step in the import process. Each food product requires its own certificate, so if you plan to import multiple items, you’ll need to secure a separate certificate for each one. Fortunately, the process for acquiring these food safety certificates is typically straightforward and similar across products.
The certification process can often take several months in practice, so any discrepancies or issues with submitted documentation can lead to significant delays. To avoid this, it’s essential to ensure that all necessary documents are complete, accurate, and submitted promptly to the appropriate authorities. This is especially important for companies and investors looking to fast-track their certification process and bring their products to market quickly.
Customs Procedure for Importing Raw/Frozen Meats into Vietnam
After successfully obtaining your Certificate of Food Safety, the next crucial step is to initiate the importation process. This involves submitting an import application and reserving your goods. Alongside the standard documentation needed for Customs Clearance—such as the Invoice, Packing List, Certificate of Origin (COO), Airway Bill, and Bill of Lading—you must also present the Certificate of Food Safety acquired earlier.
It’s important to remember that depending on the type of meat you are importing, additional specific documents may be necessary. To navigate this complex process smoothly, consider consulting with an experienced import compliance firm.
If all necessary documentation is submitted, the customs clearance process usually takes about two business days. However, shipments can sometimes be flagged for inspection by Customs, resulting in a “Red Line” status. In these cases, the clearance process may be delayed for several days while the shipment undergoes inspection. To ensure a smooth customs clearance experience, it’s essential to provide complete and accurate documentation from the start.
Step 3: How to Distribute Raw Meat in Vietnam
Starting a trading company allows you to begin wholesale operations immediately. However, if you want to engage in retail operations, you’ll need to obtain a Retail License from the Department of Industry and Trade. This license is essential for legally selling your products to consumers.
The standard processing time for essential documents is typically 10 business days. However, it’s crucial to be aware that this timeline can be extended if government officials request additional clarification or documentation. In some instances, this may result in delays of 1-3 months. Therefore, investors should consider these potential delays when planning their timelines to ensure smooth business operations and avoid disruptions.
How Can Iris International Assist You?
Starting a business in a foreign country can be challenging due to complex legal requirements, customs clearance, and daily operations management. Iris International is here to simplify the process for you. Our expert team provides comprehensive support to help you navigate every step of establishing your business abroad.
Iris International is a top business consulting firm in Vietnam, specializing in end-to-end solutions for foreign investors. Moreover, we help clients navigate the complexities of doing business in Vietnam with our expert team. Specifically, our services include guiding you through the incorporation process, securing the necessary certificates, and, ultimately, facilitating smooth customs clearance.
Iris International provides comprehensive incorporation services along with EOR (Employer of Record) solutions. Our services include recruiting top talent, managing payroll and taxes, delivering employee benefits, and overseeing daily operations. Partnering with Iris International allows you to focus on business growth while we take care of essential administrative tasks, ensuring your company runs smoothly and efficiently.
At Iris International, we proudly serve as a trusted partner for thousands of foreign investors in Vietnam. Our dedicated team specializes in delivering high-quality business consulting services, ensuring your operations run smoothly and efficiently. If you’re thinking about expanding your business in Vietnam, Iris International is your go-to source for expert guidance and support.
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