Complete Guide to Setting Up a Trading Company in Vietnam
Various trade agreements and increasing openness to foreign investment have resulted in lucrative opportunities for foreign investors in Vietnam’s trading sector. Foreign investors are allowed to set up 100% foreign-owned trading companies in Vietnam and can now do it without having prior experience in trading business as required previously.
In this article, we will demonstrate the step-by-step process of setting up a trading company in Vietnam.
Minimum capital requirement in Vietnam
There is no official minimum capital requirement for setting up a trading company in Vietnam. However, founders need to ensure that the injected minimum capital is sufficient for covering all their planned expenses.
For example, you must consider the following costs when establishing a trading company in Vietnam:
Whether a storage room is necessary for your products
What are the transportation expenses
Whether you need a retail outlet for selling your products
Trading company’s business plan
Foreign investors aiming to establish a trading company in Vietnam must first present a business plan including the following points:
Business activities and methods of doing business
Business plan and market development
Evaluation of the implications and socio-economic efficacy of the business plan
Labor use
Financial plan
In addition to a business plan, foreign investors also need to submit a financial plan. Documents that need to be included in the financial plan are:
Representation of capital
Sources of funds and fundraising plans
Other financial documents
If your enterprise has already been established in Vietnam for at least 1 year, you also have to submit an income statement on the basis of your last audited financial statement.
#1 Investment license
The first step of registering any foreign business in Vietnam is to obtain an investment license from the Department of Planning and Investment. The investment registration certificate is the primary license necessary for conducting any business in Vietnam.
It usually takes up to one month to acquire it.
#2 Business registration certificate
The second step is to acquire an enterprise registration certificate. In general, the Department of Planning and Investment will issue the business registration certificate in one week.
Also, take note that after you have received the certificate, you have 90 days to make the initial capital contribution.
#3 Trading license
The third step of registering a trading company in Vietnam is to obtain a trading license. The process of getting a trading license consists of three sub-steps.
First of all, we will send an application to the Department of International Trade (DIT). The DIT will then give an approval or ask for additional documents, if necessary.
Secondly, after a response from the DIT, they will prepare an official letter and submit it to the Ministry of Industry and Trade (MIT).
Thirdly, the Ministry of Industry and Trade will then either confirm your request for the trading license or ask for additional documents. If the application is approved, the Department of International Trade will issue the trading license within one week.
If the application is rejected, however, you need to provide supplementary documents and the DIT will then prepare a new official letter for the Ministry of Industry and Trade.
#4 Product registration/announcement/approval for sale
The last step before any import or export in Vietnam can take place is to register your products and get an approval for sale. Also, note that not all products need a registration. We can assist you with registering your products in Vietnam.
Article provided by law firm.