Set up a Foreign Owned Company in Vietnam
Vietnam has many competitive advantages when it comes to being an attractive destination for foreign investment, whose booming economy offers a lot of investment opportunities. Here are six reasons why you should invest in Vietnam:
Fast Growing Economy
As one of not only Asia’s but also the world’s fastest growing economies, Vietnam’s GDP has seen a steady growth, averaging by 6.5 % per year since 2000 ( according to the World Bank). These figures demonstrate that Vietnam is becoming among the most attractive destinations for foreign investors doing business here.
Vietnam has a very stable socio-political environment with a free-trade market and significantly improved ease of doing business index in the past years, ranked 69th as for the country with favorable investment conditions for foreign investors in 2019. Political stability is one of the biggest advantages for Vietnam to pursue economic development and accelerate overseas investment.
Vietnam’s economic achievements can be attributed to proactive reforms implemented by the Government in the context of a politically stable business climate, which has contributed to creating a better legal environment for foreign investors by protecting their rights to do business and prohibiting unfair competition in conformity with the WTO’ rules.
Integration to Global Economy
Vietnam is in a profound integration process which results in many huge opportunities for foreigners doing business in Vietnam. These agreements bind Vietnam to a multilateral rulesbased trading system, and have been incredibly successful at powering Vietnam’s export story.
Infrastructure in Vietnam is booming
In Vietnam, the focus of its infrastructure reforms will mostly revolve around the transport and logistics sectors. Data from the G20, Global Infrastructure Outlook 2017 report shows that Vietnam will require US$605 billion in infrastructure investments by 2040. New infrastructure, high-rise buildings and private housing projects are shaping the skylines of cities across the country.
Young and competitive workforce
Labour market with young workers is another attractive point to foreigners doing business in Vietnam. With approximately 54 million of energetic and hardworking workers, Vietnam is a the most promising labour supply market in Asia. In additon to abundance of human resources, low-cost labor force is also an attraction for foreign investment in Vietnam.
The process of setting up a foreign company in Vietnam
Investment procedures in Vietnam are quite fast and simple. It usually takes about 30 working days to set up a foreign-owned company in Vietnam.
1. Find a professional law firm
Meet with a local law firm to get legal advice on which kind of business is the most suitable for investors’ business planning and choose a location for headquarters or factories in Vietnam.
2. Apply for a business license
After choosing appropriate business lines, an application for business license shall be submitted to Department of Planning and Investment to obtain an Investment Registration Certificate and Enterprise Registration Certificate.
3. Make a company seal
The company obtains a company seal from a seal maker. The company has the right to decide on the design, content and quantity of its seal.
4. Open a company bank account
Investors open investment capital accounts to transfer money into Vietnam. Investors are entitled to remit profits to foreign countries under the legal conditions.
5. Register initial tax and accounting procedures
The company submits the applicationfor registration of license tax, registration of tax calculation method, issuance of invoice after establishment.
6. Run your business
After meeting statutory conditions, the company can operate normally and look for potentials as well as profitable opportunities in Vietnam.
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