Did you know that Vietnam is one of Southeast Asia’s most strategically located trading hubs due to its proximity to several key trade routes? This article will guide you through how to set up a foreign-owned trading company in Vietnam. We’ll also provide some key insights on navigating import and export regulations for different types of goods.
How to register a trading company in Vietnam
Setting up a licensed legal entity in Vietnam for trading, importing and exporting
The most common legal entity for foreign investors looking to set up a trading company in Vietnam is the Limited Liability Company (LLC). Your company must also obtain specific licenses and provide certain details to register for trade in Vietnam if your activities involve internationally manufactured resources or goods:
| License | Issuing authority | Description |
| Investment Registration Certificate (IRC) | Department of Planning and Investment (DPI) | Outlines your intended business activities, registered capital, and conditions on investment. If you are going to be importing goods to Vietnam, you must provide a product list with Harmonized System (HS) codes to the DPI |
| Enterprise Registration Certificate (ERC) | Department of Planning and Investment (DPI) | Detailed record of your company details and registration. Upon issuance, you have 90 days to make the planned capital contribution. |
| Retail license | Department of Industry and Trade (DOIT) | Specifies intended B2C retail/trading activities and registered products |
| Import license | Ministry of Industry and Trade (MOIT) | Demonstrates safety and quality compliance for items with special characteristics or regulated goods. |
Remember that depending on the scope of your importing activities and the type of goods you are trading, some additional licenses may be required. The specific application process for import licenses also varies depending on regulations on a specific product. To find out more about import licensing, take a look at our related guide to import to Vietnam.
How much does it cost to start a trading company in Vietnam?
There is no minimum capital requirement for establishing a trading company in Vietnam. However, the registered capital must comply with your planned revenues and expenses. When setting up a trading company in Vietnam, company founders should consider the following factors for determining the minimum necessary capital:
- Are you importing raw materials or manufacturing goods locally?
- Are your products being sold wholesale or is a retail outlet also required?
- How much does transport and logistics cost?
- Does your company need a storage location?
If you are looking not only to import but to distribute the products as well, you need to register that business line too when applying for the investment license. Remember that as you need to inject the capital before applying for the trading license, you must have sufficient funds already during incorporation to avoid delays.
Overview of Vietnam’s Free-Trade Agreements
One of Vietnam’s main appeals to prospective foreign trading companies is the fact that the country boasts several significant free trade agreements (FTAs) with ASEAN and Western countries. The most prominent FTAs currently are with the European Union, the United Kingdom, and the Trans-Pacific Agreement with several Western countries.
There are several benefits to be gained for companies trading within the scope of these agreements:
- Gain access to larger markets and prospective export clients
- Reduced tariffs on exported goods, leading to increased profitability
- Improved intellectual property and trademark protection
- Increased foreign investment and access to new technologies
- Better access to global supply chains
- Facilitation of trade and investment across borders
Emerhub’s local experts can help you determine which agreements you should consider when setting up your trading company in Vietnam to ensure that your operations are strategically set up. We can also help you with establishing local logistics and supply chain management for your business.
Key considerations for establishing trading operations in Vietnam
Vietnam’s regulated industries and goods
When setting up a trading company in Vietnam, you must consider whether or not your imported goods and products fall within any of Vietnam’s regulated industries. The following products are subject to strict safety and quality standards by the Vietnam Vietnam Food Safety Authority, the Drug Administration of Vietnam, or the Ministry of Health:
- Food and Beverage
- Cosmetics
- Drugs and Pharmaceuticals
- Medical Devices
- Health Supplements
It is important to note that items that you wish to import cannot fall under the prohibited or limited product list established by the Vietnamese Ministry of Industry and Trade. Some of the products you are forbidden to import are:
- Newspapers, journals, and periodicals
- Tobacco products
- Aircraft and spacecraft vehicles
- Used consumer goods such as clothes, clothes, electronic appliances, medical equipment, home appliances, vehicles
Emerhub can help you determine whether the products you intend to trade are prohibited or regulated in Vietnam. For regulated imports, our product registration service can assist you in securing the necessary licensing from the relevant government authorities.
Navigating import taxes and duties in Vietnam
Most goods imported to Vietnam are liable to tax and duty. Depending on the product, import taxes in Vietnam vary in different ranges. Some items, like luxury goods, are subject to higher tax rates versus raw materials and common goods. Imported goods are subject to:
- Import tax
- Value-added tax (ranges between 0 and 10%)
- Special consumption tax (SCT) – for products classified as luxury items
- Environment protection tax (EPT) – for products that harm the environment
It is important to note that Vietnam is part of several ASEAN Free Trade Areas, meaning that if you import goods intra-regionally within designated zones, some locally produced products will be subject to lowered tax rates of 0 to 5%.
How partnering with an Importer of Record presents an alternative that is both time and cost-effective
The application process for company registration and securing all the necessary documents for starting a trading company in Vietnam may take up to 2 months or more, depending on the products and the size of the capital. If you want to start importing sooner or don’t want to set up a company in Vietnam, Emerhub’s Importer of Record service presents a unique alternative.
The main benefit of using an importer of record in Vietnam is that it exempts you from registering a company and obtaining licenses. Our local logistics team will also handle customs clearance in your stead. Your goods will be imported using our local distributors who already have the required permits.
This means that you can start importing virtually immediately without needing to wait for any paperwork. You simply need to submit the following documents and we’ll manage the entire process from pickup to delivery through our supply chain:
- List of the HS codes together with the descriptions and pictures of the goods and their intended use
- The total volume of the shipment in kilograms
- Packing list (weight, dimension, total weight)
- The total value of the consignment (USD)
- Finalized invoice
Want to set up a trading company in Vietnam? Contact Emerhub via the form below with a brief overview of your planned activities and one of our local experts will be in touch!
