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.
Requirements for 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
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.
How to set up a trading company in Vietnam
#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. Emerhub can assist you with registering your products in Vietnam.
Using a nominee registrar in Vietnam
However, if you do not want to go through the process of setting up a trading company in Vietnam, the quicker option is to use our importer of record or nominee registrar service. We can also act as your nominee registrar and make the registration/announcement on your behalf.
Import to Vietnam using an importer of record
If your aim is to start importing to Vietnam immediately or you do not wish to set up a legal entity in Vietnam, you can use our importer of record service (IOR).
With an importer of record, you don’t have to acquire any licenses or register a company in Vietnam. As a bonus, using an IOR will also liberate you from all import taxes in Vietnam as the consignee will take care of them as part of the service.
Have a look at our previous article to see more benefits of using an importer of record in Southeast Asia.
Contact Emerhub via the form below the form below for any further questions or start with registering your trading company in Vietnam here.