Companies selling businesses in Nha Trang. What are the possible options for starting a business in Vietnam? How much does it cost to open a Vietnamese company?

21.09.2019

Vietnam is a socialist state that is pursuing “market” reforms by leaps and bounds. Despite the fact that communism is still the main ideology, we are seeing how private property is gradually replacing state property, and foreign capital is only welcome.

The dream of opening a business in Vietnam is not so far-fetched. Moreover, there is no need to set yourself up for failure in advance, taking into account socialism, ignorance of the language, and the bureaucratization of Vietnamese society.

In fact, many of our compatriots have long understood that business in Vietnam is a profitable and profitable activity for Russians if they find their own niche, unoccupied by anyone. Before opening a business in Vietnam, carefully and thoroughly study the market conditions. You should not try to outdo your Vietnamese colleagues in areas where technology is quite high. Try to come up with something that the Vietnamese consumer is not yet familiar with, or do something “well forgotten old”, but with the introduction of innovation. Also, a business that is not subject to changing fashions and crises will always be successful: food, hotels, clothing, etc.

For example, you can open a Russian dumpling shop or a pancake shop - this will be exotic for the Vietnamese, which they may be interested in, and for foreign guests. A few “friends” also flock in droves to the establishment, which smells of the Motherland.

Russian dumplings is something new and unusual that will surely attract the Vietnamese

There are also prohibited areas for foreign businessmen: rice cultivation, pearl farming, etc. Here we are talking about native Vietnamese national activities, to which outsiders are “forbidden” entry. And it’s unlikely that you’ll be any better at them than the Vietnamese.

Now let's find out what circles of bureaucratic hell you will have to go through to open a business in Vietnam.

Let's look at it step by step using the example of a cafe (restaurant).

You look for a premises to rent and enter into a lease agreement. At the same time, immediately agree on the rental period (this is required condition) and try to keep it as high as possible, since if you change your address you will have to pay $400 for re-registration. Immediately indicate a possible increase in rent, otherwise next year you may be cheated by 100%. When you submit documents to open a cafe, you just need to indicate the address.
You come up with a name that does not yet exist in nature, and also indicate it.
Open a personal bank account and deposit $5,000 into it as authorized capital, but this is only for one. If there are more founders, the amount increases with each person.
Hire an accountant. He will handle all documentation, calculations and provide reports to the tax office.
You receive a License if you successfully complete registration. You no longer need a work permit, since a license replaces it, but other workers whom you subsequently hire need to buy a permit.
You apply for a residence permit based on the received license. You don’t have to apply for it, but renew your visa all the time, but it will be more expensive. Do you need it?

It is very important to know some tricks. For example, it may take six months or even a year to open a company in which 100% of the shares are owned by foreigners. But a company that belongs to a Vietnamese is registered in 2 weeks. There are special figureheads who will be provided to you by law firms that assist in registering businesses for Russians.

Quite a lot of our compatriots live and work in Vietnam, and many of them may have the idea of opening a business in Vietnam and reaching the next professional level.

What opportunities, from the point of view of organizing a business in Vietnam, will be interesting, popular, scalable, and most importantly long-term from the point of view of working in the market?

What risks may be associated with starting a business in Vietnam? — we will try to briefly consider these issues in this note.

I will say right away that organizing any business requires certain skills, dexterity and, of course, luck, and building a business in Vietnam is no exception. It should also be understood that both success and failure in business depends on many factors:

ability to communicate,
ability to establish and use necessary contacts,
desire to promote your products and services,
analyze the market, search for and evaluate opportunities.

What are the possible options for starting a business in Vietnam?

Consulting in Vietnam. Today Vietnam is beginning to interest many Russian businessmen, many of them have already worked with China, many simply consider the issue of supplies from Asia as promising for their business. While in Vietnam, you can create your own consulting company and support such clients, providing them with services: meeting, searching for Vietnamese supplier companies, negotiating, and exercising control functions for the manufacture/shipment of products. Of course, you can “tackle everything,” or you can focus on a “chosen product niche” and specialize in it.

Buying/Opening a cafe, hotel, store in Vietnam. Of course, it is very tempting to buy a ready-made business in Vietnam and make a profit, but not everything is so simple: it is necessary not only to understand the nuances of local legislation, but also to understand how this business competitive and truly profitable. It’s easy to buy, but to make a profit is much harder! And you shouldn’t trust the numbers that they show you - you should double-check everything in practice.

Independent supply of products to Russia. On the one hand, this is consulting, on the other hand, your task will be to find buyers or build a network of product orders from Vietnam to Russia. Which? - a topic for separate consultation and study.

Become a representative of a Russian company. Many Russian companies strive to supply their products to Asian markets; Vietnam is quite interesting in this regard and promising direction. You can become a representative of several Russian companies and ensure interaction with Vietnamese business - a kind of consulting “in reverse”.

I consider each of the possibilities in detail on my own.

Basic risks of starting a business in Vietnam

Business as a source of income. You should not be under any illusions and think that doing business in Vietnam will immediately bring you a lot of money:

any business has a break-even point and a payback period, and unfortunately few people can predict all the risks and foresee the future.

Therefore, if you now have a job in Vietnam, do not rush to give up everything, but try to work and develop your business in parallel: yes, it is difficult; Yes, it may seem ineffective, but by doing so you will significantly reduce the risks, especially if you have a family.

Legislation and Taxation. Of course, every country has legislation and taxation. When organizing a business in Vietnam, you should think about and consult with local lawyers about the specifics of company registration, taxation, and possibly any benefits and nuances. I recommend not relying on publications on the Internet and the opinions of people that are not supported by documents - be sure to contact a local law firm and consult this issue, in order to avoid possible penalties.

What kind of business can be opened for Russians in Vietnam?

Most often, visitors want to open a restaurant, bar, shop, travel agency, or start exporting Vietnamese goods to Russia.

By the way, in most cases, if you come to a Vietnamese consulting agency, most likely they will tell you that these are the only possible types activities for a foreigner or opening such a company “costs a lot of money,” but this is not so. Actually the list is quite wide. View full list.

It should be noted that these types of businesses are designed for Russian tourists and are highly dependent on many factors, for example, on fluctuations in the ruble exchange rate, the season and the solvency of tourists in general.

As a rule, the most successful projects are designed for the local population or tourists from other countries.

How much does it cost to open a Vietnamese company?

The approximate cost of opening a company with 50% foreign investment is VND 14,000,000 (approximately $620).

This price includes:
- Package of company documents.
- Round stamp.
- Opening a current account in a bank.

The processing time is 10 working days.

The final cost is calculated individually and depends on the type of activity and the share of capital.

First, the company is opened under the name of a Vietnamese citizen, after which the founders include foreign founders (investors).

What documents are needed to open a business in Vietnam?

1. Notarized foreign passport of the investor and signatures of the investor on the necessary documents.

2. Vietnamese partner, in whose name the company is initially opened.

3. Legal address.

4. There is no need to post the authorized capital through accounts.

5. A certificate of no criminal record is NOT REQUIRED, however, it may be needed in some cases to obtain additional permits and licenses.

Does opening a company in Vietnam give you the right to obtain a residence permit?
Yes. A temporary residence permit is issued for 2 years for citizens Russian Federation and former Soviet republics (with the exception of Kyrgyzstan, Tajikistan, Uzbekistan, Kazakhstan). This process takes about a month and a half. The service for such registration costs $120 for each member of the company, a citizen of the Russian Federation, and $265 for citizens of the former Soviet republics.

Each company member has the right to register the legal stay of his family. Family means spouse (marriage certificate), children (birth certificate), mother and father (participant’s birth certificate). The price for registration of accompanying family members is $60 for citizens of the Russian Federation and $205 for citizens of the former Soviet republics.

Is it possible to open an “empty company” just to get a visa?

Last year this option was still quite workable. However, at present, the “Department of Planning and Investment” is paying increased attention to the opening of new companies with 5-8 foreign founders, so now it is quite difficult. In some cases, this ends with the closure of companies and the cancellation of visas.

Is it possible to buy a ready-made business in Vietnam?

It is possible, but currently the ecosystem of small and medium-sized businesses in Vietnam is in its infancy, so, as a rule, obviously unprofitable projects are sold. Most often these are restaurants.

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Moving to another country for permanent residence is associated with a large number of legal subtleties and problems. No less difficulties arise for foreigners who decide to open a profitable business on foreign soil. Vietnam is often chosen for these purposes, offering investors and entrepreneurs excellent conditions for doing business. This is how it seems to our compatriots from the outside. But is this really so?

Before you finally break ties with your homeland and plunge headlong into matters related to setting up your own company in Vietnam, you need to become more thoroughly acquainted with the peculiarities of doing business in this country.

What is business immigration in general?

The concept of “business immigration” is not very familiar to Russians. Its essence is the transfer of business interests beyond the borders of one’s homeland.

Entrepreneurs are attracted abroad:

Special conditions for doing business;
Cheap labor;
Tax benefits and more.

All this looks extremely attractive against the backdrop of Russian realities:

Corruption;
Lengthy and complex registration of your own company;
High loan rates;
Ignoring the needs of small and medium-sized businesses.

Business immigration is beneficial to the receiving party, as it receives:

Financial injections into the economy;
New workplaces.

In countries with a high influx of foreign entrepreneurs:

The market is developing;
The quality of goods improves;
The list of services in various fields of activity is expanding.

The Vietnamese authorities understand all the advantages of business immigration and willingly accept businessmen from all over the world on their territory.

What is a business visa and what type of visa can you get in Vietnam?

A business visa is a document that allows foreigners to legally stay in the territory of another state and conduct business with various companies.

Russians have the opportunity to obtain a business visa of the DN category when entering Vietnam. It is issued for different periods:

1 month;
3 months;
Six months;

In addition, the document is classified according to the number of entries into the country:

One-time;
Multiple.

These points are discussed at the stage of submitting documents.

What type of business is more profitable to open in Vietnam?

Immigrants prefer to realize their business plans in one of the following ways:

Investment;
Relocation of an existing business from its homeland;
Opening a company in a new location;
Purchasing a business abroad from a citizen of the country.

Vietnam joined the WTO more than 11 years ago, and all these years the country's economy has been growing steadily. This is partly facilitated by changes in legislation that attract foreign businessmen to the country.

The most interesting and profitable areas for them are the following:

Travel business(unfortunately, it is difficult for foreigners to break into this industry);
Innovative entrepreneurship– the country welcomes projects using modern technologies(small production would be a good investment, but do not forget about the high cost of electricity in the country);
Information Technology– to the Vietnamese authorities in last years This niche is very interesting, and they give foreigners the opportunity to work in this direction;
– in a country with developed tourism, various cafes will always be in demand.

Our compatriots abroad often choose small businesses because:

It is easier to open;
The business requires less costs;
It is possible to easily change direction;
Fewer employees are easier to manage.

Migrants themselves believe that it is difficult to bet on one type of business or another in Vietnam. Therefore, they try to be sensitive to all changes and adapt to them.

In the medium-sized business segment, you can think about opening production for the future. Vietnam suffers from electricity shortages, so there are few companies in the country engaged in production. But the problem is being solved, and in 5 years the situation will radically change.

Enterprises opened today will begin to make a profit, and the cost of production will decrease several times. Therefore, those who want to settle in Vietnam for a long time are recommended to consider this type of business.

Conditions for immigration to Vietnam for entrepreneurs

It is important for foreign businessmen to understand exactly how to organize their move to Vietnam, and what awaits them in the first months of their stay in the country. You need to start by resolving visa issues.

Choosing the right visa and conditions for obtaining it

In order to freely conduct business in Vietnam, you need a business visa.

It is issued upon arrival in international airports four cities:

Ho Chi Minh City;
Hanoi;
Danang;
Nha Trang.

Before traveling, the entrepreneur must receive a confirmation letter. Without it, the visa will not be issued.

The cost of a permit for Russians consists of two types of commission:

For services;
Stamp duty.

The first group includes payment for the services of companies involved in visa preparation. Most often, businessmen turn to them, as it simplifies the paperwork process. And many companies even meet migrants on the spot and accompany their activities for the first months.

The stamp duty is payable on site upon receipt of the visa. Its price depends on the length of stay in the country:

A single entry permit for up to 3 months costs $25;
A multiple-entry visa for the same period of time will cost a foreigner $50;
A six-month visa costs $95;
For a permit for a year you need to pay $135.

Consideration of an application from a businessman usually takes no more than 2 days. If you wish, you can pay about $40 extra and receive a confirmation letter in 4-8 hours.

Most business visa applications are approved by the Vietnamese Embassy.

Conditions for obtaining a residence permit, permanent residence, citizenship

It is quite difficult to obtain a residence permit in Vietnam, since the policy of the Communist Party is aimed at limiting the number of foreigners who have such a right. The easiest way to obtain a residence permit is for highly qualified foreigners seeking to work in the country.

The main conditions for obtaining a residence permit are the following:

Age over 18 years;
Education above average;
No criminal record at home or in Vietnam;
Availability of a work visa;
A valid contract with the employer for a period of more than 3 months.

Marriage in itself is not a reason for issuing a residence permit to a foreigner. But as a person who has entered into a marriage with a Vietnamese, a foreigner may well qualify for a residence permit.

Not everyone can obtain permanent residence in Vietnam. To do this you need to meet a number of requirements:

Reside permanently in the country for 5 years;
Go through the naturalization procedure.

The last point is the most difficult for a foreigner to fulfill, since the applicant must:

Learn Vietnamese;
Prove knowledge of the country's history;
Have an idea of the traditions of the new homeland.

The procedure for obtaining Vietnamese citizenship is extremely complicated, and a foreigner can only obtain a passport with the personal approval of the head of government.

The methods by which you can change citizenship are divided into 2 groups:

Automatic;
Non-automatic.

Children who:

Found in the country;
Born from parents who do not have citizenship, but permanently reside in Vietnam;
Born from a person who has citizenship of the country;
They were born from the Vietnamese in every corner of the globe.

Other foreigners need to obtain citizenship by fulfilling a number of conditions:

Live in the country for more than 5 years;
Regularly visit migration services;
Comply with all laws;
Learn the language and history of the state;
Renounce existing citizenship.

Foreigners rarely seek Vietnamese citizenship because normal life and business enough residence permit in the country.

Buying an existing business and starting from scratch

These types entrepreneurial activity in demand among Russians.

Buying a business

For many Vietnamese, this is a great way to make money. Often they sell the business for initial stage immediately after registration of the company. Legally, the process is expressed in the change of the Vietnamese founder to a foreign one.

Some subtleties:

Conducting a transaction without the support of a large law firm is not entirely reasonable, as this increases the chances of meeting with scammers;
The law firm must provide potential clients with a license to conduct such cases, otherwise the transaction may be declared invalid;
Before purchasing a business, thorough due diligence is required permitting documentation and his condition, since the absence of insignificant paper will cause long bureaucratic delays in the affairs of the new owner;
Selling a business is allowed not only to Vietnamese, but also to foreigners.

Starting a business from scratch

It is important for aspiring entrepreneurs to consider that:

For each type of activity you will need to obtain a license;
The choice of activity should occur after careful market research;
Opening a company will have to be done with the help of a law office;
A good accountant is extremely important for Vietnam, since tax payment is carefully controlled by the state;
Each employee must obtain a separate permit, so the easiest way is to family business(family members working in the company must be included as co-founders).

Our compatriots consider the main difficulty in doing business tax burden. In some cases, it “eats” up to 40% of the profit.

What business options in Vietnam are most common among Russian immigrants?

Most often, our compatriots open catering establishments: restaurants, cafes, canteens. For success, it is important to take into account the flavor and demand of the service. Naturally, Russian tourists with great pleasure visit cheburek shops, dumpling shops and cafes with well-known “home-made” cuisine.

But you shouldn’t expect big profits from such a business:

If you have experience, you can break even in 1 year;
The second year, as practice shows, is decisive - entrepreneurs go into the red or remain at zero;
In the third year, those who managed to stay on zero begin to make a profit - you can aim for $2,000 a year.

The production of furniture and bamboo is an extremely profitable and popular business among Russians. But it is only available to entrepreneurs with experience in this area. In this case, already in the 2nd year you can achieve an insignificant, but plus.

The service sector, namely hotels and hostels, attracts Russian businessmen. Although it will be very difficult to promote such a business in Vietnam:

High competition;
Confused tax base;
High cost.

With daily hard work and a little bit of luck, the entrepreneur will be able to break even by the third year. In the future, profits can range from $3,000 to $15,000 per year.

Business ideas with minimal investment

If a migrant does not have even $10,000 available, he can try to enter a small business in Vietnam.

You can try your hand at the following industries:

Internet cafe– such establishments are extremely popular, and to promote them you only need creative idea for registration and interesting offers for clients;
Web design– own good specialists in Vietnam there is practically no activity in this area, so the demand for companies providing such services is high;
Marketing research– it is quite possible to make a name and fortune for yourself in this type of activity.

Some real examples

Our compatriots who managed to survive and develop their business in Vietnam write a lot about it and willingly. Here, for example, is the opinion of Smitson, who has lived in the country for more than 7 years: “I thought I was in heaven when I moved to Vietnam. But...I had to literally plow.

I started by selling souvenirs– I simply resold them to tourists. Over time, I managed to open a small production, and now, together with my brother, I own a company that successfully supplies its products to several countries around the world.”

One of our compatriots, Andrey, had a difficult time after moving from Vladivostok: “I closed an advertising company and, together with 5 employees, came to Vietnam to open a cafe. What happened?

Much: we lost money, we were deceived more than once, we changed our job profile and finally, after 3 years of hellish work, we made a profit! Now we are successfully combining the formats of a regular establishment with an Internet cafe and we believe that a great future awaits us!”

Society with limited liability– ideal for small and medium-sized businesses, since this form has a simple structure, and company members can have different percentages of shares;
Open Joint-Stock Company– in Vietnam this form is typical for middle and big business;
Branch - about opening similar companies investors are hesitant because they are not interested in opening a new legal entity;
Representation – this form will not allow you to earn income, but will provide an opportunity to establish business connections.

Decor own business is divided into several stages:

Searching for a law firm that will take care of all the intricacies of Vietnamese legislation;
Decide on the amount of starting capital - there are no strict requirements for it in Vietnam, but the most optimal amount would be $10,000;
Submitting an application to open a company to the Planning and Investment Department indicating the name;
Assigning an individual number and entering it into the database of the General Department for Taxation;
Obtaining a certificate;
Print order;
Opening a bank account;
Purchasing invoices from the Municipal Taxation Department;
Posting a registration message on the National Enterprise Registration Portal;
Payment of tax for the entire first year;
Depositing the amount of the authorized capital into the Planning and Investment Department (the deadline is set at 3 months after the opening of the company;
Registering personnel with the local employment office;
Entering employees into the Social Insurance Fund database to pay for medical and social insurance.

Taxation

The main tax burden of Vietnam includes:

VAT (3 options – 0%, 5%, 10%);
SPT (special consumption tax - from 10% to 75%);
Income tax (average 22%).

Entrepreneurs in the field of educational and medical services, as well as publishers;
In production areas software, education, healthcare, a reduced income tax rate is provided - 10%.

Other nuances

Companies with 100% foreign capital are registered within six months;
Firms where part of the capital is owned by the Vietnamese will be open during the working week;
To open a business you need to pay 15-20,000,000 dong;
The courts never take the side of a foreigner, therefore legal subtleties When conducting business, businessmen need to pay special attention.

Advice for Vietnamese business immigrants and examples of failed business attempts

Unsuccessful examples of entrepreneurial activity can cool the ardor of migrants, but it is recommended to take into account the experience of such businessmen.

Not long ago, a cafe owned by Russians closed in Nha Trang. The establishment lasted 2 years, but in the end the family gave up trying to run the business. They consider their initial mistake to be relying on Russian employees. They were brought from Russia, and the owners had to maintain a consistently high level for Vietnam wages.

Many Russians also underestimate corruption in Vietnam. Bribery is common here. Without additional money, officials are able to delay the opening of a company for a year. A migrant from Novosibirsk faced this.

His company opened for 10 months, during which he had to spend most of the money set aside for business on living. Now his idea of opening a language school is in jeopardy.

Experienced businessmen give beginners simple advice:

Do not skimp on a professional translator when registering a company;
Do not trust the smiles of the Vietnamese and the word “yes” - this means nothing to the locals;
Be careful - gullibility abroad is very expensive;
Do not count on quick super profits - Vietnam is a poor country and big income rare here.

Open successful business in a foreign country it is difficult and expensive. Vietnam welcomes foreign investors with open arms, but does not guarantee them an easy path.

More and more Russians are moving to Vietnam for permanent residence, and many are faced with logical question: But how can you make money and run a business here?

Some people manage to get a job in Vietnamese companies (such as Coc Coc), some go to work in the tourism sector (tour operators Pegasus and Anex Tour), but there are also many who open their own businesses.

Considering that the Vietnamese themselves have a rather weak understanding of marketing and good service and not everyone speaks Russian or English, then starting a business in Vietnam is not difficult for an enterprising person.

Advantages and disadvantages

Combined with exotic nature and pleasant climate, Vietnam is an ideal place to live. But, as they say, “in every barrel of honey there is a fly in the ointment”:

underdeveloped economic infrastructure;
heavy, pervasive government bureaucracy;
embryonic legal system.

Business infrastructure of Vietnam

Vietnam has the third largest population in Southeast Asia after Indonesia and the Philippines. The population is quite young. 80 percent of its 73 million people are under 40 years of age. They are usually well educated. The country's literacy rate is approaching 90 percent. Moreover, despite two decades of communist “socialism,” the Vietnamese have retained a strong work ethic and entrepreneurial spirit.

Add to these facts the country's low labor costs (average annual per capita income is about $500) and you can see why foreign companies and investors are flocking here.

To successfully compete with local companies, you will have to make an effort to adapt to the Vietnamese culture. You need to treat her with understanding and respect. This article will give some insight into doing business and interpersonal communications in Vietnam.

How to invest in Vietnam

Features of investing in Vietnam

Vietnam has policies that encourage investment in various economic sectors and geographic regions. This is reflected in the following government actions:

corporate income tax exemption or reduction for several years;
reduction in land rent;
exemption from import duties on capital goods;
deferred VAT payment.

The investment license is valid for up to fifty years with the possibility of extension. The Foreign Investment Agency fia.mpi.gov.vn is the central authority for licensing investors. Its departments are located throughout the country - in 63 provinces - and are ready to assist foreign investors. In some cases, an investment license must be approved by the Prime Minister. Investments in Vietnam can be made by purchasing shares. You can contact the Vietnam Chamber of Commerce and Industry or business consultants. They will help you choose an investment object, taking into account the best geographical location for your industry, as well as raw material and labor requirements.

Communication Differences

How to communicate correctly with business partners in Vietnam

For successful international business relations It is important to be mindful of cultural differences. Most commercial disputes arise from misunderstandings between the business partner. For example, while in our society it is customary to look your interlocutor closely in the eyes during a conversation, in Asia, including Vietnam, this is considered impolite. To express your respect, you need to keep your gaze lowered until your counterpart finishes his speech. In Asian culture, the meeting place and nonverbal behavior are often more important than spoken words.

Smiles and nods do not always mean a yes to your proposal.

Vietnamese people believe information that is passed on by word of mouth. Therefore, if you are recommended by an influential expert in this industry, your chances of winning will increase many times over. There are still prejudices among the people, for example:

Made in Japan - means reliability and durability;
in the UK - quality and high cost;
Germany is associated with excellent technology;
France, Italy - this is gloss, fashion, cosmetics.

Dispute Resolution

In Vietnam, it is extremely important to save “face”, i.e. good reputation. Therefore, if disagreements arise between you and the Vietnamese side, it is better to settle everything peacefully. Bringing the case to trial will be the end commercial relations, and the dispute resolution process itself is very scrupulous and pedantic.

Transparency and personal relationships

How to greet partners correctly

It is very difficult to obtain information in the country. If you can find out about something officially, publicly, this means that the information is not particularly valuable. Truly important data can only be obtained through personal relationships.

Key areas for business

In which area to open a business in Vietnam

Ho Chi Minh City is the largest commercial center with a population of over 7 million people. There are entire industrial parks around Ho Chi Minh City and Hanoi. Russian companies can approach the Vietnamese market in several ways:

direct export;
creation of an agency;
distribution;
opening a representative office;
creation of a joint venture;
creation of a 100% Russian company;
conclusion of a cooperation agreement;
creation of an “assembly-operation-transfer” contract;
franchise/licensing.

Internet and correspondence

Vietnamese are active Internet users, so online advertising is very effective. Most companies have websites, but not all of them invest in technical support, updates and functionality. It is not customary here to respond to emails without first getting to know each other in person. Vietnamese people prefer to do business with people they know. If you are unable to meet in person, please call after sending your email. This way, your email will not be perceived as spam, and the recipient will understand how valuable your cooperation is to you.

Rules business communication in Vietnam

Try to get direct contacts of the person you need. Start the conversation by asking for a meeting. If they answer yes, then you are interesting from a business point of view. Although email is widely used, face-to-face meetings and paper correspondence still predominate. Government agencies especially like to do this. For the Vietnamese, a real signature and an ink stamp are very important.

Customs

There is a wide network of brokers and forwarders in the country who can help with customs clearance. Most imported goods are subject to import duties and VAT. The cost varies depending on what exactly is being imported.

Vietnam currency, taxes and customs

Currency

The State Bank of Vietnam strictly controls foreign exchange transactions. State-owned enterprises and Vietnamese private companies, as well as foreign ones operating in import-substituting and other important industries, are allowed to buy currency from commercial banks. They are usually included in the so-called investment license. Please be aware that currency conversion eligibility does not guarantee availability. Transfer of foreign currency from Vietnam is only permitted in the following cases:

when a licensed importer makes payment for goods and services;
carries out transactions with foreign documents (sale and purchase agreement, invoice, customs declaration, etc.);
to repay foreign loans and interest;
to pay wages, bonuses and benefits to foreign workers.

Taxes

Vietnam has a complex tax system:

corporate income tax;
value added tax;
special sales tax;
income tax;
capital gains tax;
national resource tax;
property tax;
environmental protection tax;
personal income tax, etc.

You may be able to get tax benefits.

Tenders

The Vietnamese government does not have a monopoly in procurement, giving preference to local companies and open tenders. There are many competitive bids that are governed by international tender rules.

What documents are required to start a business in Vietnam

Documentation

Your company's local representative will take care of the documents required to import goods. By visiting the website of the Vietnam Customs Committee www.customs.gov.vn, you can familiarize yourself with their list.

Transportation of goods

Sea and air are acceptable options for delivering goods to Vietnam. The most suitable for these purposes are the international seaports of Haiphong, Da Nang and Saigon and the airports of Noi Bai and Tan San Nhat.

Main type of delivery from Vietnam

Standards

Vietnam has its own standards and technical requirements(including labeling). Simplification or complete exemption from them occurs by mutual agreement between countries. Please ensure that you have the necessary technical licenses before exporting.

Intellectual Property Rights

Vietnam has laws protecting intellectual property. If you encounter violations in this area, help:

market surveillance inspectors;
customs investigators;
economic police.

Meetings and presentations

Features of business relations in Vietnam

When making an introduction, hand over your business card with both hands. Greet the person you are talking to by name - take the trouble to find out how to pronounce it correctly. To break the ice during communication, start a conversation about football match Premier League. Most Vietnamese support Manchester United.

Many business relationships begin after recommendations from more established business partners.

Unlike Western business relationships, where it is not customary to cross the line professional communication, in Vietnam they become close and even related. The more partners share personal life events, hobbies, political views and goals, the stronger the connections between them.

Subordination

In Vietnam, position and chain of command are very important, especially if you are dealing with government agency or an official. Instead of addressing yourself as “Mr” or “Madam”, use your position, for example: chairman, director, manager, etc. When presenting a business card or brochure with information about your company, start with the most senior and work your way down. Similarly, according to rank, arrange seating in the conference room or at the dining table. The person who is senior in age and position always enters the room first.

Business Etiquette in Vietnam, chain of command

Whenever you meet a Vietnamese friend or potential business partner, try to smile sincerely. In a group of people, say hello to everyone, including children. Following the Confucian tradition, greet the oldest person first. Use a handshake when meeting and parting with members of the same sex. Many Vietnamese people use the so-called two-handed shaking, holding left hand on the right wrist. A woman always takes the initiative herself. If she doesn't, bow your head slightly. At the first meeting there is an exchange business cards, they are usually presented with both hands. Don't put them in your pocket right away, be careful.

Business lunch and dinner

Most business lunches and dinners are organized in hotels, restaurants or government agencies. If a potential partner invites you to dinner, then as a sign of gratitude, they expect the same from you. Business issues can be raised over lunch, but they are not discussed during dinner. Exchanging toasts is a tradition. The organizer of the feast speaks first. At this time, you should stand up, pointing your glass with both hands as a sign of respect towards the oldest person at the table by age or position. During a toast, you can, for example, say how beautiful and picturesque landscapes in Vietnam, about friendship and prospects for joint business.

Business lunch or dinner in Vietnam

It is not customary to come to Vietnamese business parties with your spouses. In case you don't know how to eat with chopsticks, most good restaurants have Western cutlery. At the end of dinner they bring a tray of fruit and confectionery products. After this, the guest should be the first to say goodbye, do not keep yourself waiting. Before leaving, be sure to shake the hand of everyone who was at the table with you, and eloquently thank the organizer (if it was not you).

Business dinner or lunch. How to behave at the table

Table manners

Respect age and remember that the oldest person sits first at the table.
Use both hands while eating.
Please note that finishing the contents of the plate is good manners.
Do not stick chopsticks vertically into a plate of rice. It reminds Vietnamese people of funerals and the dead. In addition, you should not roughly press the chopsticks on the bottom of the plate - in the old days, beggars did this.
Make as little sound and noise as possible while eating.
If you want to know more about what's on the table, don't hesitate to ask your colleagues. A polite guest will always be given an answer.

If you are a business woman in Vietnam

If you are a businesswoman and planning a business lunch with a Vietnamese man, choose a restaurant with a lot of customers. If you are the initiator of this lunch, you must insist in every possible way on payment for it.

Peculiarities of behavior of a business woman in Vietnam

Business gifts

In Vietnam, it is quite common to give each other business gifts during a business lunch or at the end of a meeting. They should be small and inexpensive. For example, a souvenir representing a country or with your company logo. Remember that this is not a required gesture. But, if you want to give something, avoid sharp objects (a symbol of discord) and handkerchiefs (a symbol of farewell in Vietnam).

Language of the body

Even if you feel very well received, avoid hugging or kissing someone in public. You rarely see this on the streets of Vietnam. Avoid touching the other person's shoulders or head. In Asian culture the head is considered symbolic highest point person, and touching a person of the opposite sex is considered impolite. Remember that Vietnam is a conservative country whose traditions and customs are sacred. Listen to your mind and constantly observe what is happening around you.

Some tips on how to gain a good reputation in Vietnam:

Give sincere compliments.
Distract attention from your person, transfer all praise to mentors and partners. Vietnamese people value modesty.
A business meeting can be scheduled several weeks in advance.
Hire a local representative for your company. He will be able to act as an assistant and translator.
Vietnamese people are punctual and expect the same from others.
Dress conservatively.
If your friend gets into an awkward situation, find a way to help him get out of the situation without losing face.
Don't make promises you can't keep.
Know how to be silent. This is a fairly common practice in Vietnamese culture. Silence can occur during negotiations as one side expresses its disagreement with the other.
Your business partner should feel valued around you.
Never lose your calm, avoid shouting and arguing, and especially don’t resort to insults.

Company formation in Vietnam

Depending on the industry you want to do business in, you can create the appropriate type of company:

Limited Liability Company. Most suitable for small and medium-sized businesses. It has a simple corporate structure. Instead of shareholders, an LLC has members who can own different percentages of the company.
Public corporation. This type will be optimal for medium and large businesses, since it has a more complex corporate structure. A JSC is a business entity and is referred to in Vietnamese law as a joint stock company, the shares of which are owned by several original shareholders.
Branch. Suitable for foreign investors who want to carry out commercial activities and receive income in Vietnam without creating a separate legal entity.
Representation. Office of the main company without any business operations. Is the most simple option, If foreign company does not plan to earn any income in Vietnam.

Starting capital requirements in Vietnam

For most enterprises entering the market, no mandatory starting amounts are prescribed; they can be anything. As practice shows, this is usually 10,000 US dollars. This principle opens up wide opportunities for budding entrepreneurs. Based on the Business Law, the capital must be paid ninety days after receiving the business registration certificate. This procedure is carried out by the Department of Planning and Investment.

Starting a Small Business in Vietnam

How to start a small business in Vietnam

If the capital is less than 10,000 US dollars, you can also get permission to invest in the Vietnamese economy. The main thing is that the field of activity is not very expensive. Below are examples of business lines for such conditions:

Web design;
management and consulting;
marketing research.

Registration of rights to distribute goods

Enterprises with foreign capital that have an import license and have not received the right to distribute:

can sell their products to Vietnamese sellers;
do not have the right to organize a distribution network for goods.

In other words, they can trade on the local market with the help of agencies, which entails additional costs. Why are there barriers to registering distribution rights? Vietnam wants to prevent excessive imports of goods by protecting the domestic market. On the other hand, the country encourages foreign investment in domestic production and technology. Such companies automatically receive the right to sell products.

Business etiquette, presentation, contract conclusion

What you need to do to register your business

It is necessary to indicate which products will be introduced to the Vietnamese market.
Since Vietnam is a member of international trade organizations, documents must comply not only with internal but also with external regulations.
It takes thirty business days to register distribution rights.
All documents provided by foreign management must be original in the country of which the investor is a citizen.

Nothing is impossible

Don't take the first "yes" too optimistically and don't get discouraged when you hear the word "impossible." This usually means you have to work harder to get your business partner interested. Or he hasn't yet decided on a final answer. Always try to dig deeper. What is hidden behind the word “impossible” is precisely the solution to the problem.

Additional sources

How to open a restaurant: https://duan.asia/ru/art/restaurant-cafe-bar-1
Rules for opening a company in Vietnam: