The country is one of the fastest-growing Asian economies with high GDP growth in recent years, and looks to foreign direct investment and the private sector.
It has wisely targeted high-end manufacturing and favours industries that will be sustainable and attractive to Vietnam’s highly skilled young workers—70% are under 35-years-old and 60% are of working age.
There is no minimum capital requirement for setting up a manufacturing company in the country, but the authorities will approve an investment only if it covers what you plan to do. As to shareholding, 100% foreign ownership is allowed for manufacturing companies.
In setting up the business, the two most common legal entities for foreign investors are a joint stock company (JSC) and a limited liability company (LLC), with the latter the most popular and suitable for small- to medium-sized firms. An LLC has a fairly simple corporate structure and can have up to 50 members.
For larger businesses, however, a JSC is usually the best option—it’s more complex than an LLC, but has shareholders rather than members.
Overall, setting up a manufacturing company in Vietnam has a similar process to that for any foreign investment company. But there are documentary add-ons.
Initially, official permission to conduct business activities in Vietnam means you must have an Investment Registration Certificate from the Department of Planning and Investment. Secondly, you’ll need a Business Registration Certificate. And thirdly you’ll need additional documentation depending on what you plan to build and manufacture — eg:
• A construction permit if you plan to build a new factory/warehouse
• Fire protection and fire safety license
• Environmental impact assessment, and
• Technical regulations conformity document.
Sounds like a lot of work? Relax, DEEP C Industrial Zones can take care of all that for you and more, including:
• Legal services covering licensing and general advice
• Expert local guidance in process and project management
• Human Resources (HR) backing — from hiring staff to finding accommodation
• Overall facility management and maintenance of its industrial park, through to machinery and equipment maintenance if desired.
It can also help with Vietnam’s business culture and how to successfully conduct business—more about that in the next blog.