Whether you establish a local company or set up a branch of an existing company in Vietnam, you need to get prepared for that. Exploring the local market, recent economic trends, and the specifics of the working environment in Vietnam would be a great start. Here you will find more information about the current economic situation, discover reasons to start a business in Vietnam, and learn how to get prepared for all that.
Why Doing Business in Vietnam?
The economic growth of Vietnam is obvious according to the recent data for the Q4 of 2022. Vietnam has recovered after Covid and regains the attention of investors in various spheres. The most obvious progress is shown in tourism, travel, and manufacturing are the fastest-growing sectors.
If you plan to set up a new enterprise or open a local representation of your firm, you will benefit from a taxation system for investors. The country has a stable government and promising workforce – these factors are also advantageous for doing business in Vietnam.
Things You Need to Know for Doing Business in Vietnam
Doing business in Vietnam might seem easy at first glance, though there are certain country-specific nuances to consider. Below you will find valuable recommendations ranging from setup steps to employee training that will help you to manage your business in Vietnam.
Set Up Your Office
Before any business registration and investment procedure, you need to establish your legal business address. That could be an office in rent or an owner building that you will indicate in the business registration documentation.
Prepare Documents
Decide on whether you want to establish a brand office, a local representation, or a limited liability company (LLC) in Vietnam. Depending on the chosen form, the registration time and documentation may vary. In general, such documents as an application for investment, an idea of the investment project, and financial stability proof are necessary to get the investment registration certificate (IRC).
Register Company
After obtaining IRC, you will need to apply for the enterprise registration certificate (ERC). Once issued, you will obtain the entity registration number and the tax number that would be used for financial statements and other business-related reports.
Registration of your company in Vietnam will also be followed by opening a bank account and the official announcement of the company registration. You will also need to find accounting and taxation specialists with financial statements and quarterly reports.
Hire People
Doing business in Vietnam would be impossible without a local workforce known for its diligence and persistence. When hiring people for your enterprise, comply with the local HR and employment policies. Those usually define the percentage of the local workforce in foreign investment entities and require compliance with national holidays as days off.
Develop Employee Training Plan
The next step is to develop a holistic plan for employee training and skills development. Consider ITD World Vietnam as an ISO-certified training provider for that as it offers comprehensive coaching programs. ITD World Vietnam educates leadership team personnel as well as other employees for your business success.