Success tips when doing business in Vietnam
Tips when setting up your business
- It is imperative that you are well versed with all the requirements pertaining to registration and licensing applicable to your business;
- Multiple Vietnamese Government agencies handle registration and licensing of business and navigation of these processes can be taxing;
- In this regard, we encourage our Clients to consistently use and sign contracts of service with suppliers when setting up;
- The level of bureaucracy in Vietnam can be challenging and processing of official documents and permits can take quite a long time;
- Always make sure to appoint a nominee partner knowledgeable in your field of business and its challenges in Vietnam.
Tips when doing business with Vietnamese
- Negotiations can be prolonged since most decisions must go through group consultation, it is therefore vital to maintain patience;
- Make sure to invest time in building solid relationships as this is crucial to successful business partnership;
- It is important to engage the services of a local firm to help you understand the ever-changing laws and regulations in Vietnam;
- When a Vietnamese disagrees with you during a business argument, they are likely to remain silent to help the involved parties “save face”;
- Seniority is very significant in Vietnam, it is important to address the other party by his designation, for instance Director or Chairman is preferred to Mr or Mrs.
Interesting facts about Vietnam
History and culture
- Vietnam is a Southeast Asian nation on the South China Sea bordering China, Cambodia, Laos and the Gulf of Thailand;
- The country is the world’s 14th most populated country with a populous of 95million inhabitants with 13.5% of the population living below the poverty line;
- The Vietnamese language is quite difficult to learn; it contains six different tones and a change in tone can completely change the meaning of the word;
- The most common surname in Vietnam is Nguyen and almost 40% of the country’s population share the name;
- The traditional Vietnamese culture evolves around core values of community, humanity, family and harmony.
Current events and economy
- Vietnam is the second largest exporter of rice and world’s largest exporter of cashew nuts;
- Although still a developing country, Vietnam has a high literacy rate of 94%;
- The country also has one of the lowest unemployment rates of just 2.06% among developing economies;
- The most popular mode of transport in Vietnam is motorbikes with at least 10 million bikes on the road daily;
- According to Save the Elephants Organization, Vietnam has one of the biggest illegal ivory markets in the world.
Frequently asked questions
What are the problems of setting up a 100% foreign owned company?A foreign owned company is prohibited from operating 100% foreign-owned entities for the distribution of imported and domestically-produced goods, investment in the securities businesses, warehouse services and freight transport agency services, and maintenance and repair services of household equipment.
Am I required to visit Vietnam to incorporate a company there?No. Healy Consultants can legally incorporate your Vietnam company without you needing to travel.
What is the minimum number of directors required for a Vietnam company?Under statutory regulations, a Vietnam company requires a minimum of one director.
Can my company be 100% foreign-owned?Yes, a company in Vietnam can be 100% foreign-owned in selected sectors.
What is the minimum number of shareholders required for a Vietnam company?A Vietnam company requires a minimum of two shareholders.
Are shareholder/director details available for public viewing?Yes.
Is a Vietnam company required to submit an annual tax return and/or financial statements?All foreign companies in Vietnam are obliged to submit an annual return and are required to have their financial statements audited annually.