Food supplements are essential products designed to enhance your diet by providing additional nutrients that may be missing. These nutrients can include vitamins, minerals, amino acids, herbs, and other botanicals. Available in various forms like tablets, capsules, powders, liquids, and gummies, food supplements are easily accessible either over the counter or through a prescription from a healthcare provider.
Vietnam’s economy has seen remarkable growth in recent years, resulting in rising incomes for the middle class. This economic boom has created a substantial demand for healthy products, especially food supplements that support workout routines, yoga practices, and active lifestyles. As more people prioritize their health and wellness, the market for nutritious supplements continues to expand, making it an exciting opportunity for businesses in Vietnam.
Discover the booming food supplement market in Vietnam and learn the essential regulations and processes for importing and distributing products. This comprehensive guide will help you successfully launch your business in this expanding market.
Navigating the Path: Your Guide to Importing and Distributing Food Supplements in Vietnam
To set up a business for importing and distributing food supplements in Vietnam. There are 3 main steps:
Step 1: Open a trading company
Step 2: Import Food Supplements into Vietnam
Step 3: Distribute imported products to the market
Step 1: Set Up a 100% Foreign-Owned Trading Company
To successfully conduct import and wholesale operations, it’s essential to register a business entity with trading functions. Remember, wholesale companies operate on a B2B (business-to-business) model, meaning they only sell products to other businesses. If your goal is to sell directly to end users (customers), obtaining a Retail License is necessary. This license allows you to engage in retail sales and reach consumers effectively. We’ll cover the details of obtaining a Retail License in a future discussion.
To register a company, it’s essential to obtain both the Business Registration Certificate (BRC) and the Investment Registration Certificate (IRC). These important documents are issued by the Department of Planning and Investment (DPI). The company registration process usually takes about 4-6 weeks, or roughly 30-45 days, to complete.
When registering a company, one of the key requirements is having a business address. This can be either a virtual or physical address during the setup phase.
Having a legal representative for your company is essential to comply with local regulations. This representative can be either a Vietnamese citizen or a foreign national, including yourself. However, to qualify as a resident, the representative must have a permanent address in Vietnam.
If you don’t have a suitable candidate for this position, you may want to consider utilizing a nominee resident director.
Determining the capital investment for your business is crucial for success. Once your company is fully incorporated, you’ll need to inject capital into it to ensure smooth operations. Although there is no legal minimum for capital requirements, it’s advisable to invest a reasonable amount to support your business growth. Proper capital allocation can significantly enhance your company’s stability and potential for success.
Learn more details about opening a Trading company in Vietnam – with 100% foreign ownership
Step 2: How to Import Food Supplement Products into Vietnam?
Once you’ve registered your business, you can begin importing food supplements into Vietnam. To successfully navigate this process, follow these key steps:
- Determine the HS code of the commodity
If you’re a company or investor planning to import food supplements, it’s crucial to identify the correct HS code for your products. This code helps determine the applicable taxes and ensures accurate Customs Clearance. Understanding the HS code system is essential for a smooth import process and can save you time and money.
Food supplement products in Vietnam are classified under HS code 210690 in the List of Import and Export Goods. It’s crucial to identify the correct HS code for food supplements to ensure compliance with import regulations and avoid potential issues.
- Obtain the Certificate of Food Safety
After successfully registering your business and determining the HS Code, the next important step is to obtain a Certificate of Food Safety from the Ministry of Health in Vietnam. This essential certificate verifies the specific products you plan to import, as each product needs its own unique certificate.
If you’re planning to import food supplement products into Vietnam, it’s important to know the certification process. For instance, if you want to bring in ten different food supplement items, you’ll need to apply for ten separate certificates. Previously, these certificates required renewal every three years, but recent changes mean they are now valid indefinitely.
To obtain a Certificate of Food Safety, it’s important to work with authorized agencies such as the Center for Standards, Metrology and Quality 1, the Quality Assurance and Testing Center 3 (QUATEST 3), or the National Institute for Food Control (NIFC). These organizations conduct essential food safety and hygiene inspections. Once you’ve completed the inspections and registered your findings, you can use the results to apply for your food safety certificate.
In practice, the certification process can take several months, and any discrepancies or issues with submitted documentation can further delay processing times. Therefore, it’s crucial to ensure that all necessary documents are complete, accurate, and submitted promptly to the relevant authorities. This is especially important for businesses and investors looking to speed up the certification process and launch their products to market quickly.
Customs Procedure of Import Food Supplements into Vietnam
After you obtain your Certificate of Food Safety, the next crucial step is to initiate the importation process. Start by submitting your application for importing and reserving goods. Along with the standard documents required for Customs Clearance—such as the Invoice, Packing List, Certificate of Origin (COO), Airway Bill, and Bill of Lading—you will also need to provide the Certificate of Food Safety obtained in the previous step.
To ensure a smooth customs clearance process, it’s crucial to provide all necessary documents. Typically, customs clearance will be completed within two business days. However, in certain situations, your shipment may be flagged for “Red Line” inspection by Customs. This means it will be opened and checked, potentially delaying the clearance process by a few days.
Step 3: How to Distribute Food Supplements in Vietnam?
As noted earlier, a trading company inherently operates with a wholesale function. This setup enables the company to instantly participate in import/export and wholesale operations, adopting a B2B model from the moment of its establishment.
If a company wants to sell food supplement products directly to consumers, obtaining a Retail License from the Department of Industry and Trade is essential. To secure this license, the company must submit a comprehensive business plan that outlines its operations and future plans. Additionally, a clear financial strategy is required, detailing how capital will be used and including liquidity statements.
After establishing your business in Vietnam, you can apply for a Retail License. This application must include an audited financial statement and a confirmation of no pending tax obligations from the Tax Department. Note that this requirement applies if your company is at least one year old.
The processing time for your dossier is typically 10 business days; however, it can take longer if government officials request additional clarifications or documents. This can extend the process by an additional 1 to 3 months. Investors should be aware of this potential delay when planning their timelines.
How Can Iris International Assist You?
Establishing a trading company in Vietnam is a straightforward process, making it an attractive option for entrepreneurs. Generally, there are no complicated requirements or conditions, and sub-licenses are typically not needed—except for retail businesses, which must obtain a Retail License.
However, for companies looking to import and distribute food supplements, the primary challenge is gathering all necessary documentation. Vietnam has strict regulations regarding food supplements, and obtaining the required permits and approvals can be complex and time-consuming. Fortunately, with the right guidance and support, navigating these regulations becomes manageable.
At Iris International, we specialize in helping businesses establish trading companies in Vietnam across various industries. Our extensive experience includes assisting numerous trading companies with their import processes. We handle everything from securing import permits and filing customs clearance dossiers to obtaining Retail Licenses.
With our deep understanding of the Vietnamese regulatory landscape, we provide effective and cost-efficient solutions for importing and distributing food supplements in Vietnam. By leveraging our expertise, you can ensure your business receives the essential support needed to thrive in the Vietnamese market. Let us help you succeed with your trading company in Vietnam!
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