REQUIREMENTS FOR SETTING UP A FOREIGN COMPANY IN VIETNAM

Fully serviced offices help foreign small companies optimize their costs

1. Vietnam becomes a market attracting international investment

After 30 years of national renewal, development and economic integration, Vietnam has now become a vibrant investment market and attracts investors from many countries around the world. Undeniably, after many years of building and developing the country, Vietnam has achieved success in many aspects: the poverty reduction policy has been effectively implemented; diversified economic development in industry, agriculture, fishery and forestry sectors (increasing vigilance and significantly reducing the rate of deforestation, increasing natural afforestation and planting trees for economic exploitation), tourism becomes the key economic sector of the country, trade in services is the foundation for building a modern economy in developing regions, education is improved, literacy rate reached 99% of population; Vietnamese cultural is known to international friends; the government keeps good and harmonious relations with other countries around the world; people’s lives have been improved both materially and spiritually.

>>>>> Office for lease in Ho Chi Minh City

Foreign investment in Vietnam has contributed to promoting the development of the domestic economy

Regarding natural and human conditions, because Vietnam is a country with a large population of nearly 100 million people, it dominates the labor force. The current labor force has high quality skills and White collar has also increased significantly. Universities are also gradually realizing that it is important to help students enhance life and work skills, so most graduates can adapt well to the new working environment. In addition to the human factor, Vietnam also has favorable natural conditions for economic development, such as a long coastline, a large amount of minerals, a large vacant land fund, unique natural landscapes, etc… These conditions bring great attraction to investors in potential areas across the country.

2. Many foreigners are living and working in Vietnam

According to statistics as of early April of the Ministry of Labor - Invalids and Social Affairs, in Vietnam, there are more than 100,000 foreign workers from 110 countries and mainly from Taiwan, China, Korea, and Japan. There’s 12% of foreign workers who hold managerial positions, 8% hold executive positions and 58% are experts in various fields. They are mostly concentrated in provinces such as Hanoi, Bac Giang, Ho Chi Minh City, Long An, etc… 

The large number of foreigners coming to work and live in Vietnam shows that the belief in innovation and development in the country is huge. They find a country that can meet their work, life and income needs. For most foreigners, the cost of living in Vietnam is considered low and suitable for both a stable career and a quality living space.

3. Foreign enterprise registration procedures in Vietnam

In order to carry out the procedures for establishing a company, first of all, foreign enterprises need to meet the conditions on business lines and must comply with domestic and international laws. The financial capacity of the company’s owner must be confirmed through the savings-book, account balance and others to ensure that the balance is not less than the capital contributed to the business project. Alos, business locations must be legally verified based on the rental contracts, certificate of land use rights, construction permit, household registration book, etc…

>>>>> Cheap office in District 2

With the support of local staff, foreign companies can easily understand the domestic culture of Vietnam

Required documents for business registration include:

• Proposal to establish a business.
• Draft of the company’s charter.
• If it’s a joint stock company, it’s necessary to provide a list of shareholders.
• Certified copy of passport.
• Certified copy of investment registration certificate.

The order of registration procedure is as follows:

• Register business information on the national information system.
• Submit the application to the Department of Planning and Investment or the Project Management Board at the business investment area.
• Monitor the processing of records to supplement, receive notifications and get results according to the appointment time.
• Processing time after 5 working days. In case of online registration, the working time is 3 days.

4. Factors affecting successful foreign businesses

Most newly established businesses face some difficulties in the process of operation. This is even more true for foreign businesses. When their business takes place in another country and does not speak the same language, it makes it even more difficult to run it smoothly. The important thing that foreign startups need to do is learn about the culture, the habits and customs of the country, local people, etc… in Vietnam. One way to make this easier is to build close relationships with local Vietnamese. They can be your friends, partners or employees who have competence and reputation as well as extensive knowledge of domestic issues and have expertise relevant to your business fields. Local friends help make the life of foreign businesses richer and expand the practical knowledge of the society for business people, thereby helping them better understand the culture and local people. Domestic business mainly serves the domestic market, so recruiting Vietnamese employees also helps when the company needs to carry out legal procedures, contact customers, etc…

In addition, business has to do with finding a location for headquarters, shops, restaurants, construction, etc… So knowing many services for businesses helps the search process faster. Brokerage companies, office leasing units, etc… are active in big cities. Enterprises need to choose a business area in accordance with the plan, then look for service providers in the area to cooperate.

>>>>> Office for lease in Thu Duc City

The international agreements on the international economy signed between Vietnam and other countries play a great role.

Regarding office leasing for small businesses, the fully serviced office is the optimal choice because they not only cut down a lot of expenses without hurting the image of foreign startups but also help the company's employees can work right after completing the lease contract. Businesses don't need to wait for the procurement, decoration and layout of a new office.