Is It Difficult To Set Up A Business In Da Nang?

Is it difficult to set up a business in Da Nang?

Located between Hanoi and Ho Chi Minh City, Da Nang possesses the potential of a city worth living in Vietnam. However, many foreign enterprises who want to invest in this city often wonder about administrative procedures, consumer demand, office space, …

Vietnam has many provinces with relatively large development potential. Especially in the Central region with a long and beautiful coastline. Even so, not all provinces take advantage of their advantages. Da Nang is one of the few provinces that has had certain effects in taking advantage of its position and becoming one of the five most developed provinces in Vietnam nowadays.

How to set up a business in Da Nang?

1. Learn market characteristics and consumer culture of people in Da Nang

The difference between consumer culture in Da Nang is relatively large compared to Ho Chi Minh City or Hanoi. People here tend to live slower. Migrants from other provinces come here less. However, Da Nang still has relatively strong urban development with the investment of many businesses and the number of tourists coming here every year. Find out about the characteristics of the business market here if you really intend to seriously set up a company

2. The support of the Da Nang government with foreign-invested enterprises

Your set up a company will be able to benefit from the initial steps by the support of the city government. The legal procedures to set up a business will be completed by the local support services, tax issues are minimized.

However, you will still face difficulties if you do not know Vietnamese and the legal regulations for establishing a company. This forces you to plan to find intermediary companies to help complete the initial procedure.

3. How many types of companies are in Da Nang (Permitted by Vietnamese law)?

Currently, there are 2 types of companies popular in Da Nang. These are FDI companies and joint ventures.

• FDI Companies:  The company with foreign direct investment is the type that the owner of the company is 100% foreigner. This type mainly appears in technology, hotel, financial enterprises, …

• Joint ventures companies: The joint venture company must have at least 2 owners, 1 Vietnamese and 1 foreigner. The common areas of use of this type are tours, advertising, real estate, …

4. The space office and staff

The important role in setting up a business is office space and staff. Da Nang City has not had the development of social services and human resources such as Hanoi or Ho Chi Minh City. However, this will not cause planning for your company, if you have the best preparation.

You can easily choose office space with a diverse rental price. Finding the indigenous staff is not too difficult. However, considering the plan to set up a company may take a long time due to the city's socio-economic characteristics.

Da Nang city is an ideal place for those who want to find a stable life and plan carefully to set up a business. Sometimes you may not be too excited about a different life here, however, if you feel fit, you can easily start a business here.