Vietnam is calling, and it’s not just the landscapes or the warm smiles of its people. Vietnam is now covered in global news as a growing potential in Southest Asia for ambitious entrepreneurs and global investors. Whether you dream of expanding your business empire or starting fresh, there has never been a better time to establish a company in Vietnam.
Let us explore why Vietnam should be your next big business move and answer all the questions you might have about the benefits of doing business here.
The Allure of Vietnam: Why Foreigners Are Flocking Here
Imagine this: a country where economic growth defies global downturns, where opportunities span from bustling metropolises to serene industrial zones, and where government policies actively welcome foreign investors. Vietnam is not just a country of potential—it is a land of promise realized. Here’s why foreigners are captivated:
- Stunning Economic Growth: Vietnam has consistently achieved GDP growth rates of 6% to 7%, making it one of the fastest-growing economies in the world.
- Strategic Location: Nestled in the heart of Asia, Vietnam offers unparalleled access to ASEAN markets, China, and beyond.
- Proactive Reforms: The government’s investor-friendly policies and streamlined processes make it easier than ever to establish a company in Vietnam.
Whether you’re motivated by Vietnam’s rising middle class or its strategic positioning in global trade networks, this country is a beacon of opportunity.
Why Establish a Company in Vietnam? 7 Compelling Reasons
Booming Economy with Resilient Growth
Vietnam has emerged as an economic miracle in Southeast Asia. Over the past decade, its GDP has consistently ranked among the top performers in the region, even in the face of global challenges.
Economic Highlights:
- GDP growth has averaged between 6% and 7% annually over the past decade.
- Exports, a backbone of the economy, have grown by 15% annually, making Vietnam a global manufacturing hub.
Big names like Samsung, Intel, and LG Electronics have established significant operations in Vietnam, benefiting from its robust economy and competitive advantages.
Vietnam’s stability and growth potential make it an ideal location to invest and expand your business. Establishing a company in Vietnam means riding the wave of one of the world’s most dynamic economies.
Strategic Access to Regional and Global Markets
As a member of trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), Vietnam is a gateway to global markets.
Key Benefits of Vietnam’s Trade Agreements:
- Reduced tariffs and increased market access.
- Proximity to major markets like China, India, and ASEAN.
Companies like Nike and Adidas have leveraged Vietnam’s strategic location to establish supply chain hubs that connect them to markets worldwide. By establishing a company in Vietnam, you can tap into these agreements, gaining access to over 2.2 billion consumers across participating countries.
Young, Educated Workforce
Vietnam boasts a population of nearly 100 million, with over 60% under the age of 35. This youthful demographic brings energy, adaptability, and innovation to the workplace.
Workforce Highlights:
- Literacy rate exceeding 95%.
- Increasing focus on technical and vocational training.
Companies like Foxconn and Intel have praised the skill and productivity of Vietnam’s workforce, making the country a key part of their global operations. Competitive labor costs combined with high skill levels create the perfect environment for companies seeking to reduce expenses while maintaining quality.
Favorable Government Policies
Vietnam’s government actively supports foreign investment through tax incentives and simplified regulations. Key reforms include:
Tax Benefits:
- Corporate income tax standard rate: 20%.
- Reduced rates for high-tech and priority sectors
Ease of Business:
- Vietnam ranks 70th globally in the World Bank’s Ease of Doing Business Index.
- Simplified company registration processes.
Global giants like Toyota and Unilever have benefited from these favorable policies, solidifying their long-term presence in Vietnam. Establishing a company in Vietnam is not just a transaction; it is a partnership with a government that wants you to succeed.
Strategic Infrastructure Development
Vietnam is heavily investing in infrastructure to support economic growth. The government has allocated over $240 billion for projects spanning transportation, energy, and telecommunications.
Key Developments:
- Modern sea ports and logistics hubs.
- Expansion of highways and rail systems.
These advancements not only reduce costs for businesses but also enhance operational efficiency when you establish a company in Vietnam. Companies like Maersk and Cargill rely on Vietnam’s improved logistics to streamline their operations.
Thriving Domestic Market
Vietnam’s rising middle class is reshaping the domestic economy, driving demand for goods, services, and technology.
Market Trends:
- Retail sales have consistently grown at double-digit rates over the past decade.
- Urbanization rates are projected to reach 44% by 2030.
Foreign companies like Starbucks and McDonald’s have successfully tapped into Vietnam’s growing consumer base, making it an ideal time to establish a company in Vietnam to cater to local demands.
Competitive Cost Advantages
Vietnam offers significantly lower labor and operational costs compared to regional competitors like China and Thailand.
Cost Breakdown:
- Average monthly wage: significantly lower than neighboring countries.
- Affordable utilities and real estate options.
By establishing a company in Vietnam, firms like IKEA and H&M have optimized their cost structures while maximizing profitability, securing their foothold in the Asian market.
FAQs About Establishing a Company in Vietnam
1. What Types of Business Can Foreigners Establish in Vietnam?
Foreign investors can establish various types of businesses, including:
- Set up Wholly Foreign-Owned Enterprises (WFOEs).
- Set up Joint Ventures with local partners.
- Set up Representative Offices.
2. Are There Restrictions on Foreign Ownership?
Certain sectors, such as banking, insurance and telecommunications, may have restrictions, but many industries now allow 100% foreign ownership.
3. What Are the Initial Costs of Establishing a Company in Vietnam?
Costs vary depending on the business type, but they typically include registration fees, office leasing, and capital investment.
4. How Long Does It Take to Establish a Company in Vietnam?
The process can take 1-3 months, depending on the complexity of the business model and industry.
How to Start: A Step-by-Step Guide
Step 1: Choose the Right Business Structure
Decide types of business that suits your goals.
Step 2: Register Your Business
Submit required documents depending on types of business to be set up.
Step 3: Obtain Necessary Licenses
Industries like manufacturing or education may require additional permits.
Step 4: Open a Corporate Bank Account
Set up an account to facilitate transactions and capital contributions.
Step 5: Hire Local Talent
Leverage Vietnam’s skilled workforce to build your team.
Future Looking: Make the Leap
The opportunities in Vietnam are too significant to ignore. From its booming economy to its strategic location, establishing a company in Vietnam can be a transformative step for your business. With competitive costs, favorable policies, and a thriving domestic market, Vietnam is the ultimate destination for ambitious entrepreneurs and forward-thinking investors.
Now is the time to act. Establish a company in Vietnam and unlock the potential of one of the world’s most exciting markets. Don’t wait for the future to come to you; build it in Vietnam.
About ANT Consulting and Market Entry Services in Vietnam
ANT Consulting is here to assist you from the outset; providing intelligence, information, advisory, management or support services that assist market entrance, and ensure efficient business start-up operation.
Research Service
Company Profiling and Due Diligence
Policy and Regulatory Research
Assistance in Setting-up Business Venture
M&A Origination & Execution
For legal advise, consult with ANT Lawyers
How ANT Consulting Could Help Your Business?
Please click here to learn more about ANT Consulting or contact our lawyers and consultants in Vietnam for advice via email ant@antconsult.vn or call our office at +84 28 730 86 529