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How to start a business in Vietnam as a foreigner
☉ While Vietnamese startup companies go to other countries for starting their businesses, there are also various people from many different countries, choosing different types of businesses that have successfully established their businesses in Vietnam. However, how to start a business in Vietnam as a foreigner is still a big question for many startup companies.
Language, culture and legal are the first factors should be aware when foreigners start their businesses in Vietnam. This article will help you understand some of these important factors as the answer for the question “how to start a business in vietnam as a foreigner”
☑ Factor 1: Learning business culture in Vietnam is the way of how to start a business in Vietnam as a foreigner
Learning business culture in Vietnam is the way of how to start a business in Vietnam as a foreigner
It can be said that business culture is the soul of an enterprise, because it influences, even dominates production activities, business decisions, internal and external relationships. Here, it is possible to understand the business culture of a business as perceptions, objectives and cultural values that must be included in every activity.
Vietnam is located in the Eastern cultural region of the Southeast corner of the world; therefore, there is a typical agricultural culture that is full of characteristics of eastern culture.
- With a businessman when he meets up with a Vietnamese partner: Let’s start the story by introducing yourself. Don't be surprised if they want to know your age. It is a way for Vietnamese people to choose their roles when they talk, due to the abundance of personal pronouns in Vietnamese.
- Gift is an extremely popular cultural expression in Vietnam. In particular, on the occasion Tet holiday of Vietnamese people, do not forget to give gifts and greeting cards to your partners and relationships here!
- Eating and drinking is an essential part of community activities and business activities in Vietnam. Dinner with local representatives or customers to help develop relationships and make your local partner
- The way Vietnamese people drinking in a party is also different. If you drink alone, it is impolite. Everyone's habit is to drink only after toasting
- During the work, the Vietnamese side often said, "we will consider", "we will answer". So if you need to decide early, it's best to send all the necessary documents before the meeting. If it is a document sent to state agencies, please write it in Vietnamese!
- At the beginning of the negotiation will always be the story which do not relate to your main discussion. Don't be impatient, that's called 'creating atmosphere'! You should not mention about your lawyer because the Vietnamese people do not want to see him when negotiating and also dislike the subject from the legal aspect.
- Sometimes Vietnamese entrepreneurs are always slow to catch business situations. It can be said that the slow attitude of rubber hours is a daily attitude in modern Vietnamese people.
☑ Factor 2: Learning laws in Vietnam is the way of how to start a business in Vietnam as a foreigner: Establishing businesses with foreign elements in Vietnam
You need to update on the Law on investment and the Law on enterprises in Vietnam when you have a plan to start a business in Vietnam as a foreigner
With the enactment of the Law on investment and the Law on enterprises 2014, Vietnam has established a legal framework to regulate investment participation and business establishment of foreign investors in Vietnam.
Thereby, it will improve the investment environment in the direction of creating a fair competitive environment while protecting national security. Based on the current law, foreign investors looking for investment opportunities in Vietnam can choose one of two options for how to start a business in Vietnam as a foreigner with foreign elements as follows:
Option 1: Request for the first investment registration certificate (whether it is a 100% foreign-invested enterprise or a joint-venture enterprise) and then carry out the procedures to apply for a Certificate of registration enterprise.
Option 2: Invest in the form of capital contribution, purchase of shares in Vietnamese companies, then participate in managing the company as agreement by the parties.
Each of the above options has certain advantages and disadvantages related to the conditions, administrative procedures and governance issues when you implement investment projects in Vietnam.
Client's of LHD Law Firm
Hopefully, this article will help you know thoroughly about how to start a business in Vietnam as a foreigner. The above is two factors, in our opinion, it is also the two main difficulties of foreign businesses when they start their businesses in Vietnam. However, about corporate culture, you can gradually get used to but the law must be clear from the beginning. Therefore, if you want to be more clear about business laws when you start a business in Vietnam, you can contact with LHD Law Firm (Free Quotation and legal advise)
A foreign investor (just like a local investor) may select one of the following Vietnamese legal entities to carry out a project:
What are the Vietnam Corporate Income Tax (CIT) rates?
Can my company be 100% foreign-owned?
Yes, a company in Vietnam can be 100% foreign-owned in selected sectors.
Can a foreigner open a bank account in Vietnam?
What is the process to register a company in Vietnam?