Before Registering a Company and Becoming a Country Manager in Vietnam
#1 Choosing Business Lines in Vietnam
concentrate on what will be your main activities during the first 6-12 months.
- Logistics
- Sports
- Education
#2 Applying for a Work Permit in Vietnam
Collection of the documents you need to start processing a work permit in Vietnam can take 3-5 weeks as some of them must be legalized beforehand.
#3 Set Up Accounting System From Day One
The parent company/investor can authorize a country manager in Vietnam to make expenses on behalf of the company before it is registered.
#4 Opening a Business Bank Account in Vietnam
For the reader’s whose eyes are on an international bank, know that you should prepare a bit of extra time.
- Process with international banks is usually lengthier as you need a reference letter from the parent company’s branch
- The communication between the bank in Vietnam and the bank abroad is not always as smooth as you would expect
Best is to get the processes started before receiving the business registration certificate.
After Company Incorporation in Vietnam
#1 Contracts Must Apply to Local Regulations
Each country has its own customs and standard procedures.
Terms and Conditions in Vietnam
Hereby note that it is a must to present these paragraphs in Vietnamese as well.
#2 Employment Regulation in Vietnam
Another reason for planning ahead and looking for the employment regulation beforehand is that it might be different to what your group’s standards are.
- Rehire the employee
- Do not rehire, but pay higher compensations
Employing Foreign Workers in Vietnam.
#3 Compliance in Vietnam
One of the keys for a country manager in Vietnam is knowing the local compliance.
| Compliance Frequency | Requirements |
|---|---|
| Annual | Business Licence Tax Financial statement (audited) Settlement of Corporate Income Tax (CIT) and Personal Income Tax (PIT) declaration Statistics report Report of foreign investment |
| Biannual | Labour use report (for local employees) |
| Quarterly | PIT declaration and payment Value-Added Tax (VAT) declaration and payment CIT payment |
| Monthly | Payment of social health and unemployment insurance |
| Compliance based on events | Registering use of foreign labour Registering new employees for social health and unemployment insurance after probation period |
Corporate Compliance in Vietnam: A Year in the Life of a Foreign Company.
Choosing Business Location in Vietnam
- Choice of business location is oriented towards the needs of staffing or clientele
- Business is done either in a rented office space or a virtual office
Once you have the virtual office with an address in Vietnam, you are able to set up a company as well.
| Region | Minimum Wage 2018 |
|---|---|
| I | VND3.98 million (~ $US 175) |
| II | VND3.53 million (~ $US 155) |
| III | VND3.09 million (~ $US 136) |
| IV | VND2.76 million (~ $US 121) |
Is Hanoi or HCMC a better business location in Vietnam?
Hiring Support Staff
Also, hiring a person fluent in Vietnamese means that your company can hire a contractor that cannot speak English and thus provides local prices.