Economic and political reformation launched in 1986 spurred the rapid economic growth of Vietnam. Today, it is one of the fastest growing economies with an expected average annual expansion of up to 7% from 2016 to 2020. Given that it is one of the emerging markets, businesses are proliferating to benefit from new prospects it offers. In addition, business environment improved in the fourth quarter of 2017 which resulted in an optimistic outlook for businesses in 2018.
Additionally, Vietnam’s population of 93.6million and its strategic location accessing to both China and Southeast Asia market, it provides new foreign companies opportunities to set up their business. Find out more about company formation processes and top reasons why many businesses are investing in this country.
Company Formation In Accordance With Vietnam’s Economic Climate
Vietnam joined the World Trade Organisation in 2007 which opened their doors to foreign businesses and investors. However, when forming a company in Vietnam, the processes involved has to be considered.
The next few sections will provide an overview of the company registration process. Hopefully, this will provide you a direction into setting up your company in Vietnam.
Setting up an Offshore Company in Vietnam
To start, always remember to determine the business structure of your company which fits your goals and objectives.
When setting up a business in Vietnam, prioritize the acquisition of an Investment Certificate (IC), also known as a Business Registration Certificate.
Take note of these additional documents necessary for business registration:
- A certificate of incorporation
- A company charter or articles of association
- Audited financial statements for the past 12 months
- Valid personal identity card or passport of any of the business’ authorised representatives
In order to allow a smooth registration process, all necessary documents should be prepared beforehand.
Incorporating a company in the country may be daunting for now. Nevertheless, the advantages of setting up an offshore company in Vietnam outweighs this minor setback. Moreover, the country’s governing system is focusing its efforts to make the company formation process easier.
Additionally, here are some of the top reasons why foreign investors continue to setup a company in Vietnam:
Business operations are getting easier
As part of the overall effort in promoting economic growth, Vietnam’s government has been fine tuning its policies to encourage foreign businesses and investors. This initiative by the government allows company formation process to be more convenient and creating more transparency in business law.
Openness to foreign investments
There are several incentives to foreign investors who will invest in a certain field or geographical area. Some of the tax benefits are:
- Lower corporate income tax rate or exemption from the tax
- Exemption from import duty, e.g. on raw materials
- Reduction of or exemption from land rental or land use tax
Young demographics and skilled workforce
Vietnam’s demographics is young with a median age of 30.8 years. Moreover, the government is greatly investing in its education system. For businesses, this means that they will have access to a large pool of dynamic and skilled workforce.
Learn More About Vietnam’s Business Climate Today
With the international business community being optimistic about Vietnam’s stable economic growth in 2018 and the country’s stable growth in GDP over the years, more foreign investors are enticed to go to Vietnam.
If you want to have a great head start when investing in Vietnam, you can consider consulting a company formation agent. Do look for a company formation agency that provides comprehensive knowledge and expertise in Vietnam’s governing policies for company formation. This will help speed up your process of setting up your business in the country. This is definitely a significant investment that will provide exceptional benefits throughout your business’ journey to success.
Starting a Business, Angloinfo.com
Optimistic business trends up in 2018, Vietnamnews.vn
Top 11 Reasons Why to Invest in Vietnam, Emerhub.com