Markets for expansion
all about investing in
Vietnam
why vietnam should be your targeted expansion Market
Vietnam’s booming economy, strategic location, and a young, tech-savvy workforce make it an ideal expansion market. With a growing middle class and favorable business climate, tapping into Vietnam offers tremendous growth potential for businesses of all sizes. Let us explore why Vietnam has become so attractive to investors and companies who want to establish their business in this country.
Frequently Asked Questions & Answers
See our brief explanations to some of the mostly asked questions from our clients, details can be provided by our experts
Incorporation Topic
Many industries in Vietnam, for instant consulting, trade, IT, and retail, allow 100% foreign ownership. Nevertheless, it’s crucial to note that sectors like logistics, advertising, and media might have limitations on the degree of foreign ownership permissible.
Read more: Setting Up Offshore Business In Vietnam
Both foreign and local investors have several options for establishing a Vietnamese legal entity for their projects, including:
- Limited liability company (LLC): Can be a single-member (SLLC) or have up to 50 members (MLLC).
- Shareholding or joint stock company (JSC): Requires at least three shareholders with no maximum limit.
- General partnership or limited liability partnership.
- Private enterprise (similar to a sole proprietorship).
As per the regulations, the invested funds are usable for the company’s purposes, covering expenses like rent and employee salaries. However, if you use up all of your initial capital and plan to infuse more funds, you’ll need to modify your business license, which can be a lengthy procedure.
Read more:
Setting Up Offshore Business In Vietnam
The Ultimate Guide to Starting a Business in Vietnam on a Budget
Typically, setting up a company in Vietnam takes 1 to 2 months, but it can vary based on conditional or unconditional categories. The specific city where registration occurs also affects processing times, with cities like Ho Chi Minh City often processing faster than Hanoi or Danang.
Read more:
Essential Information for incorporating an offshore business in Hanoi
Danang: Top Choice For Offshore Business Formation In Vietnam
Many businesses typically don’t have a set minimum capital requirement, giving you flexibility in choosing an appropriate amount. However, having a significant capital is advisable if you plan to use the company for your investor visa. Certain specialized businesses might have specific capital requirements.
Operation Topic
- Corporate income tax of 20% charged annually on total profits, with possible exceptions like tax breaks or lower rates for certain industries
- Value added tax of 0%, 5% or 10% applied based on the product or service, with imports and exports attracting different rates
- Personal income tax from 5% to 35% imposed on individual income, both local staff and foreign residents, with multiple influencing factors like deductions
- Foreign contractor tax of 2-5% levied on services provided by offshore companies to local Vietnamese firms, depending on service type
- Annual business license tax mandated in the first fiscal month, calculated based on capitalization, ranging from $45 to $140
Read more:
An Employer of Record (EOR) is a local entity assuming legal responsibilities, such as payroll, taxes, benefits, visas, and more, on behalf of a hiring company, making offshore company registration in Vietnam more straightforward. EOR services aim to simplify complexities in managing employees for foreign company formation in Vietnam.
Read more: Employer Of Record (EOR) Services For Hiring Employees In Vietnam
To obtain a long-term stay permit in Vietnam, you need to meet specific criteria based on your purpose of stay, such as investment, work, study, or family relationship. For investors, owning or co-owning a Vietnamese company is required. Work permits and sponsorship are necessary for work-related permits.
Read more: Types, Eligibility, And Application Process For Vietnam Long-Term Stay Permits
Vietnam does not offer citizenship through investment. However, it offers Temporary Resident Cards (TRCs) based on substantial capital investments, allowing extended stays. Another option is the Investor Visa, renewable for ongoing businesses. These avenues facilitate residency but do not grant citizenship. Citizenship is not available through investment in Vietnam.
Read more: 6 Things You Need To Know Before Doing Business In Vietnam
A Temporary Resident Card (TRC) is a long-term visa for foreigners, allowing residence in Vietnam for up to 5 years. It eliminates the need for yearly visa renewals, grants the right to sponsor family members, and requires meeting specific criteria, including a clean record and a Vietnamese sponsor’s invitation.
Read more:
Small Business Owners’ TRC Application In Vietnam
Types, Eligibility, and Application Process for Vietnam Long-Term Stay Permits
Standard Business Incorporation Process in Vietnam
A foreign owned company in Vietnam will go through the following steps to be fully incorporated in Vietnam
Step 1 - Obtain the IRC
Obtain the Investment Registration Certificate from the Department of Planning and Investment (DPI).
Step 2 - Obtain the BRC
Obtain the Business Registration Certificate from the Department of Planning and Investment DPI.
Step 3 - Bank accounts
Open a business bank account to inject the amount of initial capital that you have registered.
Step 4 - Capital Injection
Inject the capital to the bank account within 90 days from the day acquired the BRC.
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Things Need to Know for Setting Up An Office in Ho Chi Minh City
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A Step-by-Step Guide to Applying for a Work Permit in Vietnam
A work permit is required for foreigners who want to work in Vietnam. The application process can be complex and time-consuming, so it is important to start early. Here is a guide to help you apply for a work permit in Vietnam.
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What We Offer
Our business consulting service offers unparalleled strategic insights for Vietnam and international markets. Our experienced consultants analyze market trends, competition, and opportunities to develop tailored strategies that drive growth.
Tailored Solutions
We take the time to understand your unique challenges and craft customized solutions for setting offshore company in Vietnam and other countries. Our recommendations directly address specific pain points showing a commitment to client success.
Measurable Results
Tangible results matter. Our consulting service concentrates on generating quantifiable improvements in key performance indicators, thereby making the company formation process in Vietnam and Asia so simple that can amaze you.
Responsive Support
Prompt and responsive support is our outstanding character. We are always here for you to address questions, concerns, and unexpected challenges you may face along the way of company incorporation in Vietnam or in other countries.
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