Success tips when doing business in Vietnam in 2023
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
- Business success depends on personal relationships. As a result, it is important to invest time in establishing good working relationships and building trust with Vietnamese business people;
- Preparing presentations, minimising the use of words and maximising graphs, charts and visuals eases communication with Vietnamese-speaking businesspeople;
- Negotiations in Vietnam can be prolonged, since most decisions are made by group consultation. Maintaining patience is vital;
- Great respect is placed on authority and seniority in Vietnam. To be taken seriously, a high ranking representative of your company should be present in all important meetings with Vietnamese suppliers and Clients;
- Ideally, the most senior person in the team should enter the room first and greet the most senior Vietnamese representative;
- The aim of initial meetings is usually to get to know one another. Do not expect business negotiations to begin immediately;
- Allow your counterpart plenty of time to express his/her opinion. Avoid dominating the conversation but try to listen to and understand what your counterpart is thinking.
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.