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Doing Business with Vietnam

A comprehensive guide to doing business, exporting, investing, and manufacturing in Vietnam.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Foreign Investment Agency

Tel: +84 80 48461
Email: tonghop.dtnn@mpi.gov.vn
Web: www.fia.mpi.gov.vn

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General Department of Vietnam Customs

Tel: +84 24 3944 0833
Email: tongcuchaiquan@customs.gov.vn
Web: www.customs.gov.vn​

National Chamber of Commerce

Vietnam Chamber of Commerce and Industry (VCCI)

Tel: +84 24 35742 022
Email: vcci@vcci.com.vn
Web: www.vcci.com.vn

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Planning and Investment

Tel: +84 24 3823 4453
Email: banbientap@mpi.gov.vn
Web: www.mpi.gov.vn

Basic Statistics about Vietnam

  • Type of Government: Socialist Republic, One-Party State
  • Population: ~100 million (2023 estimate)
  • GDP: $409 billion USD (2023 estimate)
  • Corporate Tax Rate: 20% (standard rate)
  • Personal Income Tax Rate: Progressive rates from 5% to 35%
  • Major Exports: Electronics, textiles, footwear, machinery, seafood, coffee
  • Major Imports: Electronics, machinery, chemicals, steel, petroleum products, plastics

Exporting to Vietnam

Exporting to Vietnam involves navigating its legal framework, complying with customs regulations, and understanding the relevant documentation and logistics processes. Vietnam is an emerging market with growing opportunities, but it has specific requirements that exporters must follow closely. Below is a step-by-step guide to exporting to Vietnam, including key contacts in government and related agencies.

1. Understand Vietnam’s Import Regulations

Before exporting to Vietnam, it’s essential to familiarize yourself with the country’s import regulations. These include restrictions on certain goods, tariff rates, and the need for certifications. Goods such as pharmaceuticals, food products, and chemicals may require special permits or certifications from relevant Vietnamese authorities. Vietnam is a member of the World Trade Organization (WTO) and adheres to WTO rules, but local laws and regulations still apply.

  • How to Do It:
    • Review Vietnam’s Customs Law and import regulations.
    • Ensure that your goods are not subject to import restrictions or bans.
    • Check the Harmonized System (HS) codes for your product to verify applicable tariffs and duties.

Key Contact:

2. Classify Your Products and Check Tariffs

Every product entering Vietnam must be classified under the Harmonized System (HS) to determine applicable tariffs and duties. Vietnam applies different rates depending on the product category, and under Free Trade Agreements (FTAs) such as the EU-Vietnam FTA (EVFTA) or Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), some products may enjoy preferential tariff rates.

  • How to Do It:
    • Use your product’s HS code to check the tariff rates on the Vietnam Customs Portal.
    • Consult the FTA tariff schedules to see if your goods qualify for reduced tariffs under Vietnam’s trade agreements.

Key Contact:

3. Obtain Necessary Export Licenses and Permits

Depending on your product, you may need to obtain specific export licenses or permits from your home country or Vietnam before exporting. Some categories of goods, such as agricultural products, chemicals, pharmaceuticals, and food products, may require special sanitary or phytosanitary certificates, quality assurance certificates, or other approvals.

  • How to Do It:
    • Identify whether your product needs any export licenses or permits.
    • Obtain any required certifications such as Certificates of Origin (CO) or Health Certificates, especially for food and agricultural products.

Key Contact:

4. Prepare the Required Documentation

To successfully export to Vietnam, you will need to prepare and submit several key documents. These documents ensure that your shipment complies with Vietnamese customs requirements and includes information on the product, its origin, and the parties involved in the transaction.

  • Required Documentation:
    • Commercial Invoice
    • Packing List
    • Bill of Lading (for sea freight) or Airway Bill (for air freight)
    • Certificate of Origin (CO) (if claiming preferential treatment under FTAs)
    • Customs Declaration Form
    • Insurance Certificate
    • Sanitary or Phytosanitary Certificate (for food, plant, or animal products)
    • Import Permit (if required)
  • How to Do It:
    • Ensure all documents are prepared according to Vietnamese customs requirements.
    • Use a freight forwarder or customs broker to help prepare documents and submit them electronically via the Vietnam Customs National Single Window.

Key Contact:

5. Comply with Product Standards and Labeling Requirements

Vietnam has strict regulations concerning product standards, labeling, and safety certifications. Products must meet the country’s national standards (often harmonized with international standards such as ISO or IEC standards) and must be labeled in Vietnamese. For certain products, such as electrical appliances, chemicals, and food products, specific safety or quality certifications may be required.

  • How to Do It:
    • Verify that your product complies with Vietnam’s product standards and technical regulations.
    • Ensure all products are labeled in Vietnamese, with details such as the product name, country of origin, manufacturer, and contents.
    • Obtain any necessary certifications from the relevant Vietnamese authorities or recognized international certification bodies.

Key Contact:

6. Arrange for Shipping and Logistics

Shipping to Vietnam can be done via sea freight, air freight, or land transportation (for regional countries). You will need to work with a logistics company or freight forwarder to handle the transportation of goods, ensuring that all transport documents are in order and that the shipment complies with Vietnamese customs procedures.

  • How to Do It:
    • Choose the most suitable mode of transportation for your goods (sea, air, or land).
    • Work with a licensed freight forwarder or shipping company to manage the logistics.
    • Ensure that all shipping documents, such as the Bill of Lading or Airway Bill, are correct and accompany the shipment.

Key Contact:

7. Clear Customs in Vietnam

Once your shipment arrives in Vietnam, it must go through customs clearance. The General Department of Vietnam Customs is responsible for inspecting the goods and verifying that all required taxes, duties, and documents have been submitted. Some goods may be subject to inspection by specialized agencies before they are cleared.

  • How to Do It:
    • Submit the Customs Declaration Form and supporting documents electronically via the Vietnam National Single Window or directly at the customs office.
    • Pay any import duties, VAT, or special consumption taxes that apply to your goods.
    • If required, undergo a customs inspection for product verification.

Key Contact:

8. Pay Import Duties and Taxes

Vietnam applies import duties, value-added tax (VAT), and special consumption taxes (for luxury or excise goods) on imported products. The VAT rate for most goods is 10%, while duties vary depending on the product classification and whether the goods qualify for preferential treatment under an FTA.

  • How to Do It:
    • Calculate the applicable import duties based on the HS code of your product.
    • Pay the value-added tax (VAT) and any special consumption tax (if applicable).
    • Work with your customs broker or freight forwarder to ensure timely payment of all taxes and fees.

Key Contact:

9. Deliver Goods to Your Importer or Buyer

Once customs clearance is complete and duties/taxes have been paid, the goods can be released for delivery to the importer or buyer. Ensure that the importer has all the necessary documentation and that the goods are delivered via the agreed-upon method (e.g., door-to-door or port-to-port).

  • How to Do It:
    • Coordinate with your freight forwarder or logistics provider to arrange the final delivery.
    • Provide your importer with the necessary shipping documents and customs clearance paperwork.

Key Contact:

10. After-Sales Compliance and Support

After your goods have been delivered, it is essential to ensure that all after-sales services are in place, including warranties, technical support, and returns if necessary. Additionally, ensure that you comply with any post-import requirements, such as product recalls or consumer protection laws.

  • How to Do It:
    • Establish an after-sales service plan for your customers in Vietnam.
    • Ensure compliance with Vietnamese consumer protection laws and product liability regulations.

Key Contact:

Key Contacts for Exporting to Vietnam

  1. General Department of Vietnam Customs
    Website: https://www.customs.gov.vn
  2. Vietnam National Single Window for Customs
    Website: https://vnsw.gov.vn
  3. Vietnam Ministry of Finance
    Website: https://www.mof.gov.vn
  4. Vietnam Food Administration (VFA)
    Website: http://vfa.gov.vn
  5. Vietnam Ministry of Agriculture and Rural Development (MARD)
    Website: https://www.mard.gov.vn
  6. Vietnam Standards and Quality Institute (VSQI)
    Website: https://vsqi.gov.vn
  7. Vietnam Logistics Association (VLA)
    Website: https://www.vla.com.vn
  8. Vietnam Competition and Consumer Protection Authority (VCCA)
    Website: https://vcca.gov.vn

Importing into Vietnam

Importing goods into Vietnam involves navigating the country’s customs regulations, documentation requirements, and taxation system. Vietnam’s regulatory framework is overseen by several governmental agencies, and businesses need to ensure compliance with both national standards and international trade agreements. Below is a step-by-step guide to help you import goods into Vietnam, along with key contacts in relevant government agencies.

1. Verify Product Eligibility and Import Regulations

The first step in importing goods into Vietnam is to verify whether your product is eligible for import. Vietnam’s customs laws may restrict or prohibit the importation of certain goods (e.g., hazardous materials, banned substances, counterfeit goods). Some goods require special permits or licenses from Vietnamese authorities, such as pharmaceuticals, chemicals, and agricultural products.

  • How to Do It:
    • Check whether the product is allowed for import under Vietnamese law.
    • Determine if your product needs any specific import licenses, permits, or certifications.
    • Review the Harmonized System (HS) code for your product to understand applicable tariffs and duties.

Key Contact:

2. Obtain Import Licenses and Permits (If Required)

For certain goods, such as pharmaceuticals, chemicals, agricultural products, and machinery, importers may need to obtain special permits or licenses from Vietnamese regulatory bodies. These permits must be secured before the goods are shipped to Vietnam.

  • How to Do It:
    • Apply for the relevant import licenses through the appropriate Vietnamese agency, such as the Vietnam Food Administration (VFA) for food products or the Ministry of Health for medical devices.
    • Ensure permits are finalized before shipping your products.

Key Contact:

3. Register as an Importer with Vietnamese Authorities

To import goods into Vietnam, your company must be registered as an importer with the appropriate Vietnamese authorities. This involves obtaining a business registration certificate and registering with the General Department of Vietnam Customs.

  • How to Do It:
    • Register your business with the Vietnamese Ministry of Industry and Trade (MOIT).
    • Obtain an import-export license if your business will engage in continuous import/export activities.
    • Register with the General Department of Vietnam Customs for an importer code.

Key Contact:

4. Prepare Required Documentation for Import

Importing goods into Vietnam requires the submission of specific documents that provide details about the nature, value, and origin of the goods. These documents must be prepared accurately to avoid delays at customs.

  • Required Documentation:
    • Commercial Invoice
    • Packing List
    • Bill of Lading or Airway Bill
    • Certificate of Origin (CO) (if claiming preferential tariff treatment under FTAs)
    • Customs Declaration Form
    • Insurance Certificate
    • Import License or Permit (if applicable)
    • Sanitary Certificate or other certifications (for food, agricultural, or medical products)
  • How to Do It:
    • Collect and prepare all necessary paperwork.
    • Ensure that the Certificate of Origin (CO) is available if you plan to use Free Trade Agreement (FTA) benefits, such as those provided by the EU-Vietnam Free Trade Agreement (EVFTA).
    • Submit documents electronically through the Vietnam National Single Window.

Key Contact:

5. Classify Goods Using Harmonized System (HS) Codes

Each product imported into Vietnam must be classified using a Harmonized System (HS) code, which determines the tariff rate and any applicable taxes. Incorrect classification can lead to delays, penalties, or overpayment of duties.

  • How to Do It:
    • Use the HS code to classify your product based on the Vietnamese customs tariff schedule.
    • Consult with a customs broker or the Vietnam Customs office if you’re unsure about the correct HS code.

Key Contact:

6. Submit a Customs Declaration

Once all documents are prepared, you can submit a customs declaration to the General Department of Vietnam Customs. The declaration provides details about the goods being imported, including their value, quantity, and origin. The customs clearance process is now largely done electronically via the Vietnam National Single Window.

  • How to Do It:
    • Submit the Customs Declaration Form electronically through the Vietnam National Single Window.
    • Attach all supporting documents, including the Commercial Invoice, Bill of Lading, and Certificate of Origin.
    • Pay any customs duties and taxes (e.g., VAT) that are applicable.

Key Contact:

7. Pay Import Duties and Taxes

Vietnam imposes import duties, value-added tax (VAT), and other taxes on imported goods. The applicable duty rates depend on the HS code of the goods, their country of origin, and any trade agreements in place. For example, goods originating from countries that have an FTA with Vietnam may qualify for reduced tariffs.

  • Taxes and Duties:
    • Import Duties: Based on the product’s HS code and its customs value.
    • Value-Added Tax (VAT): Typically 10% (applied to most goods).
    • Special Consumption Tax (SCT): Applies to luxury goods (e.g., automobiles, tobacco, alcohol).
  • How to Do It:
    • Use the HS code to determine the correct import duty rate.
    • Pay any import duties, VAT, and SCT at the customs office or through electronic payment systems.
    • Ensure that payment is made before the goods are released from customs.

Key Contact:

8. Clear Customs and Arrange for Inspection (If Required)

Certain goods may require additional customs inspection or quality control checks before they are cleared for entry into Vietnam. This is particularly relevant for goods such as food, pharmaceuticals, electronics, and machinery.

  • How to Do It:
    • If your goods require inspection or testing, arrange for this through the relevant Vietnamese authority (e.g., Vietnam Standards and Quality Institute (VSQI)).
    • Once the goods pass inspection, customs will issue a clearance certificate.
    • Goods can be released from customs and transported to their final destination.

Key Contact:

9. Arrange for Transportation and Delivery

After your goods have cleared customs, the final step is to arrange for their delivery to the designated destination within Vietnam. You can work with a licensed logistics provider or freight forwarder to ensure the timely and safe delivery of goods.

  • How to Do It:
    • Contract a freight forwarder or logistics company to handle transportation.
    • Choose the appropriate mode of transport (e.g., road, rail, sea, or air) based on the nature and urgency of the shipment.
    • Ensure that any remaining documentation, such as a delivery note, accompanies the shipment.

Key Contact:

10. Post-Import Compliance and Record-Keeping

After the goods have been delivered, it is crucial to maintain accurate records of the import transaction for future compliance checks. This includes keeping copies of all invoices, customs declarations, and payment receipts for at least five years, as required by Vietnamese law.

  • How to Do It:
    • Store copies of all import documents for compliance audits.
    • Ensure that any warranty obligations or after-sales services are in place (if applicable).
    • Stay updated with any regulatory changes that might impact future imports.

Key Contact:

Key Contacts for Importing into Vietnam

  1. General Department of Vietnam Customs
    Website: https://www.customs.gov.vn
  2. Vietnam National Single Window
    Website: https://vnsw.gov.vn
  3. Vietnam Ministry of Industry and Trade (MOIT)
    Website: https://www.moit.gov.vn
  4. Vietnam Food Administration (VFA)
    Website: http://vfa.gov.vn
  5. Vietnam Ministry of Health
    Website: https://www.moh.gov.vn
  6. Vietnam Standards and Quality Institute (VSQI)
    Website: https://vsqi.gov.vn
  7. Vietnam Ministry of Finance
    Website: https://www.mof.gov.vn
  8. Vietnam Logistics Association (VLA)
    Website: https://www.vla.com.vn

Investing / Incorporating in Vietnam

Incorporating a company in Vietnam involves complying with the country’s legal framework, registering with relevant authorities, and obtaining necessary licenses and permits. Vietnam offers a welcoming environment for foreign investors, but it’s important to follow the proper steps and understand the associated costs. Below is a step-by-step guide to incorporating a company in Vietnam, including key government contacts and costs involved.

1. Determine the Type of Company and Business Structure

The first step in incorporating a company in Vietnam is to decide on the type of legal entity that best suits your business. The most common types of business structures for foreign investors are:

  • Limited Liability Company (LLC): Suitable for small to medium-sized businesses.
  • Joint-Stock Company (JSC): Ideal for larger businesses or those that intend to issue shares or list on the stock exchange.
  • Representative Office: For businesses that want to explore the market without engaging in direct commercial activities.
  • Branch Office: For foreign companies that want to engage in commercial activities in Vietnam without creating a separate legal entity.
  • How to Do It:
    • Evaluate your business needs and choose the appropriate business structure.
    • Ensure that the chosen business structure complies with Vietnamese Law on Enterprises.

Key Contact:

2. Check Foreign Ownership Restrictions

Vietnam restricts foreign ownership in certain sectors, such as telecommunications, real estate, education, and pharmaceuticals. Before incorporating your company, you must check whether your business falls under any restricted sectors and if any special conditions apply.

  • How to Do It:
    • Review the Vietnamese Law on Investment to determine any foreign ownership limits or sector-specific regulations.
    • Consult the Foreign Investment Agency (FIA) for guidance on restricted sectors.

Key Contact:

3. Prepare the Required Documents

Incorporating a company in Vietnam requires preparing several legal documents, which must be submitted to the relevant Vietnamese authorities. These documents include:

  • Company Charter (Articles of Association): Outlines the company’s structure, business activities, and governance.
  • Investment Registration Certificate (IRC): Required if the business involves foreign investment.
  • Enterprise Registration Certificate (ERC): Required for all businesses.
  • Shareholder/Partner List: For Joint-Stock Companies or multiple-member LLCs.
  • Passport/ID Copies: For all shareholders and legal representatives.
  • Lease Agreement: Proof of a registered business address in Vietnam.
  • How to Do It:
    • Draft the Company Charter and prepare all required documents.
    • Obtain notarized copies of shareholders’ passports or IDs.
    • Secure a lease agreement for your company’s office in Vietnam (a physical address is mandatory).

Key Contact:

4. Submit an Application for the Investment Registration Certificate (IRC)

If your company involves foreign investment, you must first apply for an Investment Registration Certificate (IRC) from the Department of Planning and Investment (DPI). This certificate confirms that your investment project has been approved by the government.

  • How to Do It:
    • Submit your application to the DPI with the required documents, including business plans, your company’s charter, and proof of capital.
    • The typical processing time for the IRC is between 15 to 30 working days.

Cost:

  • The government fee for applying for an IRC depends on the size and scope of the investment project, but it generally ranges from $100 to $150 USD.

Key Contact:

5. Apply for the Enterprise Registration Certificate (ERC)

Once the IRC is approved (if applicable), the next step is to apply for the Enterprise Registration Certificate (ERC). This certificate is issued by the Department of Business Registration, under the Ministry of Planning and Investment (MPI), and it legally recognizes the establishment of your company in Vietnam.

  • How to Do It:
    • Submit the required documentation (including your company’s charter, list of shareholders, and lease agreement) to the Department of Business Registration.
    • The processing time for the ERC is typically 3 to 5 working days.

Cost:

  • The government fee for applying for an ERC is approximately $50 USD.

Key Contact:

6. Register for a Company Seal

Once your company is incorporated, you must create and register an official company seal. The company seal is required for signing contracts, issuing invoices, and other official business activities. You can design your seal and have it made by a licensed seal maker.

  • How to Do It:
    • Design the company seal and have it made by an authorized seal maker.
    • Register the seal with the Department of Business Registration.

Cost:

  • The cost of making and registering the company seal is typically around $30 to $50 USD.

Key Contact:

7. Open a Corporate Bank Account

After obtaining the IRC and ERC, your company must open a corporate bank account in Vietnam. This account will be used to deposit the company’s charter capital and handle business transactions.

  • How to Do It:
    • Choose a local or international bank operating in Vietnam (e.g., Vietcombank, HSBC, ANZ).
    • Provide the bank with your ERC, IRC, and other necessary documents to open the account.
    • Deposit the required charter capital into the account within the legally specified timeframe (usually within 90 days of incorporation).

8. Register for Taxes

All companies in Vietnam must register for taxation with the General Department of Taxation (GDT). This includes obtaining a Tax Identification Number (TIN) and registering for Value-Added Tax (VAT), Corporate Income Tax (CIT), and Social Insurance (for employees).

  • Taxes to Register For:
    • Corporate Income Tax (CIT): The standard rate is 20%.
    • Value-Added Tax (VAT): The standard VAT rate is 10% (for most goods and services).
    • Personal Income Tax (PIT): Required for employees, with progressive rates ranging from 5% to 35% depending on income levels.
  • How to Do It:
    • Visit the local Tax Department office or register online via the General Department of Taxation portal.
    • Submit your ERC, bank account details, and other relevant documents.

Key Contact:

9. Hire Employees and Register for Social Insurance

If your company plans to hire employees, you must register for social insurance, health insurance, and unemployment insurance with the Vietnam Social Security. Additionally, you should ensure that all employment contracts comply with the Vietnamese Labor Code.

  • How to Do It:
    • Register with the Vietnam Social Security for social insurance contributions.
    • Ensure that you comply with labor laws, including providing minimum wages, social insurance, and mandatory benefits.

Key Contact:

10. Obtain Additional Licenses and Permits (If Applicable)

Depending on the nature of your business, you may need to obtain additional licenses or permits before you can start operations. For example:

  • Food and Beverage License: Required for restaurants and food businesses.
  • Construction Permit: Necessary for real estate and construction companies.
  • Environmental Permits: Required for businesses impacting the environment (e.g., manufacturing, mining).
  • How to Do It:
    • Apply for the relevant license or permit through the appropriate Ministry or local authority.
    • Ensure all documents and business plans comply with sector-specific regulations.

Key Contact:

Key Contacts for Company Incorporation in Vietnam

  1. Ministry of Planning and Investment (MPI)
    Website: https://www.mpi.gov.vn
  2. Foreign Investment Agency (FIA)
    Website: https://fia.mpi.gov.vn
  3. Vietnam Business Registration Portal
    Website: https://dangkykinhdoanh.gov.vn
  4. General Department of Taxation (GDT)
    Website: https://www.gdt.gov.vn
  5. Vietnam Social Security (VSS)
    Website: https://www.baohiemxahoi.gov.vn

Manufacturing in Vietnam

Setting up a manufacturing plant in Vietnam involves several steps, from choosing the right location to obtaining the necessary licenses and permits. Vietnam has become a popular destination for manufacturing due to its strategic location, competitive labor costs, and growing infrastructure. Below is a step-by-step guide to help you set up a manufacturing facility in Vietnam, including key government contacts and resources.

1. Conduct Market Research and Feasibility Study

Before setting up a manufacturing plant in Vietnam, it’s crucial to assess the market environment, industry regulations, and cost factors. Conducting a feasibility study will help determine the viability of your project, the supply chain dynamics, labor market, and potential operational challenges.

  • How to Do It:
    • Research Vietnam’s industrial zones and key manufacturing hubs (e.g., Ho Chi Minh City, Hanoi, Da Nang).
    • Analyze local labor availability, cost of utilities, transportation infrastructure, and proximity to suppliers.
    • Consider Vietnam’s trade agreements (e.g., EVFTA, CPTPP) that could benefit your business.

Key Contact:

2. Choose a Location and Industrial Zone

Vietnam offers a range of industrial parks and economic zones that provide infrastructure and tax incentives for manufacturers. Selecting the right location is crucial for your plant’s access to raw materials, labor, and export markets.

  • How to Do It:
    • Visit potential industrial zones and evaluate their infrastructure, proximity to ports, and connectivity to major cities.
    • Consider Special Economic Zones (SEZs), which offer additional tax and land incentives for manufacturing businesses.
    • Negotiate a lease agreement or land-use rights with the industrial zone management.

Key Contact:

3. Incorporate Your Company and Register for Investment

To establish a manufacturing plant, you need to legally incorporate a company in Vietnam. You will also need to apply for necessary investment registrations with the government.

  • How to Do It:
    • Incorporate your company with the Department of Planning and Investment (DPI) by submitting the required documents such as the Company Charter, Investment Registration Certificate (IRC), and Enterprise Registration Certificate (ERC).
    • Ensure that your business activity is allowed under Vietnamese law, particularly if you are a foreign investor. Some sectors may have foreign ownership restrictions.

Cost:

  • IRC Application Fee: $100 – $150 USD
  • ERC Application Fee: $50 USD

Key Contact:

4. Obtain Land-Use Rights and Construction Permits

After selecting your location, you will need to obtain land-use rights and apply for construction permits to begin building your manufacturing facility. Construction permits ensure that your plant complies with Vietnamese building codes and environmental regulations.

  • How to Do It:
    • Apply for land-use rights through the local Department of Natural Resources and Environment.
    • Submit a construction permit application to the local Department of Construction, including architectural designs, land-use certificates, environmental impact assessments (if required), and proof of land-use rights.

Cost:

  • Fees for land-use rights and construction permits vary based on location, land size, and industrial zone.

Key Contact:

5. Comply with Environmental Regulations

Manufacturing plants are subject to environmental regulations in Vietnam, particularly those related to waste management, emissions, and resource use. Before construction can begin, you may need to conduct an Environmental Impact Assessment (EIA) and obtain approval from the Vietnam Environment Administration (VEA).

  • How to Do It:
    • Prepare and submit an Environmental Impact Assessment (EIA) report to the Vietnam Environment Administration (VEA).
    • Obtain an environmental permit before beginning construction or operations.

Key Contact:

6. Finalize Construction and Install Equipment

Once you have obtained the necessary permits, you can begin the construction of your manufacturing plant. After construction, you’ll need to procure and install the appropriate machinery and equipment.

  • How to Do It:
    • Hire local contractors for construction and ensure that they follow Vietnamese building standards.
    • Procure machinery either locally or import it, ensuring compliance with Vietnamese technical standards and customs regulations (for imported equipment).

Key Contact:

7. Hire and Train Employees

Vietnam’s manufacturing sector benefits from a young and growing labor force. To operate your plant, you will need to hire workers, ensure compliance with labor laws, and provide relevant training.

  • How to Do It:
    • Register your company with the Vietnamese Social Security to ensure that employee benefits (social insurance, health insurance, and unemployment insurance) are in place.
    • Comply with Vietnam’s Labor Code, which governs minimum wages, working hours, contract terms, and worker rights.
    • Provide training programs to ensure employees are equipped to handle the machinery and processes in your plant.

Key Contact:

8. Register for Taxes and Obtain Licenses

Before beginning operations, your company must be registered with the General Department of Taxation (GDT). You will need to register for Corporate Income Tax (CIT), Value-Added Tax (VAT), and other applicable taxes. Additionally, certain types of manufacturing may require additional permits or certifications.

  • How to Do It:
    • Register for taxes and obtain a Tax Identification Number (TIN).
    • Apply for any additional operational licenses specific to your industry, such as certifications for environmental compliance or product safety.

Key Contact:

9. Source Raw Materials and Set Up Supply Chain

Once your plant is ready for operation, you’ll need to source raw materials and establish a supply chain. Vietnam has a robust network of suppliers across various industries, and many manufacturing facilities import raw materials from neighboring countries.

  • How to Do It:
    • Identify reliable suppliers for raw materials, either locally or internationally.
    • Establish logistics partnerships to streamline the supply chain, ensuring timely delivery of materials to your plant.

Key Contact:

10. Begin Manufacturing Operations

After completing all the necessary steps, you can begin manufacturing operations. Ensure that you maintain compliance with local regulations and international standards, especially if you are producing goods for export.

  • How to Do It:
    • Set up quality control processes to ensure that your products meet both Vietnamese and international standards.
    • Regularly update your tax filings, licensing requirements, and employee benefits to stay compliant with Vietnamese laws.

Key Contacts for Setting Up a Manufacturing Plant in Vietnam

  1. Ministry of Planning and Investment (MPI)
    Website: https://www.mpi.gov.vn
  2. Vietnam Trade Promotion Agency (Vietrade)
    Website: https://www.vietrade.gov.vn
  3. Vietnam Industrial Parks Portal
    Website: http://www.kcnvietnam.com
  4. Vietnam Ministry of Construction (MOC)
    Website: https://www.moc.gov.vn
  5. Vietnam Environment Administration (VEA)
    Website: https://vea.gov.vn
  6. Vietnam Ministry of Industry and Trade (MOIT)
    Website: https://www.moit.gov.vn
  7. Vietnam Ministry of Labor, Invalids and Social Affairs (MOLISA)
    Website: https://www.molisa.gov.vn
  8. General Department of Taxation (GDT)
    Website: https://www.gdt.gov.vn

    1. Vietnam Logistics Association (VLA)
      Website: https://www.vla.com.vn

Trademark Registration in Vietnam

Registering a trademark in Vietnam is essential for protecting your brand and intellectual property from potential infringement. Vietnam’s trademark registration process is governed by the Intellectual Property Law and is administered by the National Office of Intellectual Property (NOIP). Below is a step-by-step guide to help you register your trademark in Vietnam, along with relevant costs and key government contacts.

1. Conduct a Trademark Search

Before filing a trademark application, it is recommended to conduct a trademark search to ensure that your desired mark is not already registered or in use. This helps avoid potential conflicts and rejection of your application.

  • How to Do It:
    • Use the National Office of Intellectual Property (NOIP) online database to perform a preliminary search of existing trademarks.
    • Alternatively, you can hire a trademark attorney or IP agent to carry out a comprehensive search.

Key Contact:

Cost:

  • Self-search: Free
  • Professional trademark search: Costs range from $100 to $300 USD, depending on the service provider.

2. Prepare the Required Documents

The next step is to prepare the necessary documents for your trademark application. These documents will include details about the trademark and its owner.

  • Required Documents:
    • Trademark Application Form: Completed and signed.
    • Trademark Sample (specimen): A clear representation of the mark (e.g., logo, brand name).
    • List of Goods/Services: A list of the goods or services associated with the trademark, categorized according to the Nice Classification system.
    • Power of Attorney (if applicable): If you’re applying through an attorney or agent.
    • Priority Documents (if applicable): If claiming priority from a foreign application under the Paris Convention.

How to Do It:

  • Prepare all documentation carefully, ensuring that the goods/services are categorized correctly.
  • If using an agent, sign and submit the Power of Attorney.

Key Contact:

3. File the Trademark Application

Submit your trademark application to the NOIP either in person, by post, or online through the NOIP’s e-filing system. The application must include the required documents and payment of the filing fee.

  • How to Do It:
    • Submit the application directly to the NOIP’s headquarters in Hanoi or its representative offices in Ho Chi Minh City or Da Nang.
    • Alternatively, use the NOIP’s online portal to file electronically.

Cost:

  • Official Filing Fee:
    • Application filing fee (for one class of goods/services): VND 150,000 (~$6 USD).
    • Publication fee: VND 120,000 (~$5 USD).
    • Examination fee (per class): VND 550,000 (~$23 USD).
    • Additional fees apply if your application covers multiple classes of goods/services.

Key Contact:

4. Examination of the Trademark Application

After submission, the NOIP will conduct a thorough examination of the trademark application in two stages:

  1. Formal Examination (1-2 months):
    The NOIP checks whether the application complies with all formal requirements (e.g., completeness and proper documentation).
  2. Substantive Examination (9-12 months):
    The NOIP assesses whether the trademark is eligible for registration by checking for distinctiveness, non-conflict with prior trademarks, and other legal requirements.
  • How to Do It:
    • Wait for the NOIP’s formal examination results. If the NOIP finds any deficiencies, you will be given time to amend or supplement the application.
    • After the formal examination, the substantive examination will take place. The NOIP may request clarifications or issue a provisional refusal if there are conflicts with existing trademarks.

5. Publication of the Trademark Application

If the substantive examination is successful, the NOIP will publish your trademark application in the Official Gazette of Industrial Property. The publication allows third parties to oppose the application if they believe it infringes on their existing rights.

  • How to Do It:
    • Monitor the publication in the Official Gazette. If no oppositions are raised within 90 days of publication, the application will move to the next step.

Key Contact:

Cost:

  • Publication Fee: VND 120,000 (~$5 USD).

6. Receive the Trademark Registration Certificate

If no opposition is filed or the opposition is resolved in your favor, the NOIP will issue a Trademark Registration Certificate. This certificate grants you exclusive rights to use the trademark in Vietnam for specific goods or services.

  • How to Do It:
    • Pay the registration and certification fees after the NOIP informs you that your application has been approved.
    • Receive your Trademark Registration Certificate, which is valid for 10 years from the date of filing and can be renewed indefinitely.

Cost:

  • Registration Fee:
    • Certificate issuance fee: VND 120,000 (~$5 USD).
    • Registration fee (per class): VND 700,000 (~$30 USD).
    • Additional fees may apply for multiple classes or additional services.

7. Renew Your Trademark Registration

In Vietnam, a registered trademark is valid for 10 years from the filing date and can be renewed every 10 years. You must file for renewal 6 months before the expiration date to avoid lapsing.

  • How to Do It:
    • Submit a renewal application to the NOIP, including the renewal fee.
    • The process is straightforward, and no additional examination is typically required unless there are changes to the trademark.

Cost:

  • Renewal Fee: VND 1,000,000 (~$43 USD).

Commercial Dispute Resolution in Vietnam

Commercial disputes in Vietnam can arise from various contractual or business-related issues, such as breach of contract, payment defaults, or disputes over intellectual property. Vietnam offers several avenues for resolving these disputes, ranging from negotiation and mediation to more formal arbitration and litigation in court. Each method has its own procedures, costs, and timeframes.

Below is a step-by-step guide to resolving commercial disputes in Vietnam, including key contacts in government agencies and relevant costs.

1. Attempt Negotiation and Amicable Settlement

The first step in resolving a commercial dispute is to attempt negotiation between the parties involved. Many contracts in Vietnam include a clause that requires the parties to attempt to resolve disputes amicably before pursuing formal legal action.

  • How to Do It:
    • Engage with the other party in informal discussions to find a mutually agreeable solution.
    • You may involve legal counsel to help facilitate these negotiations.

Cost:

  • Negotiation itself incurs no formal fees, but legal consultancy fees may apply if lawyers are involved (typically ranging from $100 to $500 USD per hour depending on the law firm).

2. Mediation (Optional)

If negotiation fails, mediation is a structured but informal process where a neutral third party (mediator) helps the disputing parties reach a resolution. Mediation services are available through several organizations in Vietnam.

  • How to Do It:
    • Approach a recognized mediation center such as the Vietnam Mediation Center (VMC) or the Vietnam International Arbitration Centre (VIAC).
    • Submit a request for mediation, and both parties need to agree to participate.
    • The mediator will work with both parties to facilitate a resolution.

Key Contact:

Cost:

  • Mediation fees vary depending on the complexity of the case but typically range from $500 to $3,000 USD depending on the mediator’s experience and the dispute amount.

3. Arbitration (Alternative Dispute Resolution)

Arbitration is a formal and legally binding method of dispute resolution outside the court system. Many commercial contracts in Vietnam include an arbitration clause, which stipulates that disputes should be resolved through arbitration, often through the Vietnam International Arbitration Centre (VIAC).

  • How to Do It:
    • If your contract includes an arbitration clause, file a request with the VIAC or another recognized arbitration body.
    • Both parties agree to submit the dispute to an arbitrator (or panel of arbitrators).
    • The arbitrator’s decision, known as an arbitral award, is binding and enforceable under Vietnamese law.

Key Contact:

Cost:

  • The arbitration fee depends on the value of the dispute. Arbitration fees at the VIAC typically range from $1,000 to $20,000 USD, depending on the complexity and the value of the claim.
  • Additional costs may include arbitrator fees, hearing room rentals, and legal fees if the parties engage lawyers.

4. Litigation in Vietnamese Courts

If negotiation, mediation, and arbitration do not resolve the dispute, the parties can resort to litigation in the Vietnamese court system. The People’s Court handles commercial disputes, and the process follows the Civil Procedure Code. Litigation can be time-consuming and complex, but it provides a formal venue to resolve commercial disputes.

Types of Courts:

  • District-level People’s Courts: Handle smaller, less complex cases.
  • Provincial-level People’s Courts: Handle larger, more complex cases and appeals from district courts.
  • Supreme People’s Court: The highest appellate court in Vietnam.
  • How to Do It:
    • File a lawsuit at the appropriate People’s Court based on the location of the defendant or where the dispute arose.
    • Submit the necessary documents, such as the statement of claim, evidence, and contract.
    • Attend court hearings, where the judge will evaluate the evidence and issue a ruling.

Key Contact:

Cost:

  • Court filing fees depend on the value of the dispute:
    • For disputes with a value of up to VND 6,000,000 ($250 USD), the filing fee is VND 300,000 ($12 USD).
    • For disputes with a value between VND 6,000,000 and VND 400,000,000 ($250 to $16,000 USD), the filing fee is VND 5,000,000 ($200 USD).
    • For disputes over VND 400,000,000 (~$16,000 USD), the fee increases progressively.
  • Legal representation costs: Hiring legal counsel is optional but can significantly affect the cost of litigation, with fees ranging from $2,000 to $10,000 USD or more depending on the complexity of the case.

5. Enforcement of Judgments or Arbitral Awards

Once a commercial dispute has been resolved through arbitration or litigation, the final step is the enforcement of the judgment or arbitral award. This process ensures that the losing party complies with the court’s decision or the arbitral award.

  • How to Do It:
    • If the dispute was resolved through arbitration, submit the arbitral award to the appropriate People’s Court for recognition and enforcement.
    • If the dispute was resolved through litigation, the court will issue an enforcement order, which can be carried out by the enforcement agency.
    • In cases where the losing party refuses to comply, you may need to initiate enforcement proceedings.

Key Contact:

Cost:

  • Enforcement fees typically range from 1% to 3% of the value of the judgment or award but can vary depending on the complexity of the case.

6. Appeals Process (If Applicable)

If either party is dissatisfied with the court’s decision, they may file an appeal to a higher court. In Vietnam, appeals can be made to the Provincial-level People’s Court or the Supreme People’s Court depending on the nature of the case and previous rulings.

  • How to Do It:
    • File an appeal within 15 days of receiving the court’s decision.
    • Submit the necessary documentation to the appeals court, including the grounds for the appeal.
    • The appeals court will review the lower court’s ruling and either uphold, reverse, or modify the decision.

Cost:

  • Appeal fees are calculated as a percentage of the initial court fees, typically half of the original filing fee.

Other Notes on Doing Business with Vietnam

Vietnam has emerged as an attractive destination for foreign investment, driven by its economic growth, strategic location, and competitive labor force. However, doing business in Vietnam requires an understanding of the social, cultural, political, and economic environment. Below is an overview of key factors you should consider when conducting business in Vietnam, including links to relevant resources for further guidance.

1. Social and Cultural Factors

a. Cultural Norms and Business Etiquette

Vietnam’s business culture is influenced by a mix of local traditions, Confucian values, and modern business practices. Foreign businesses need to be aware of these cultural norms to build successful relationships.

  • Hierarchy and Respect: Vietnamese society values hierarchical structures. In business interactions, showing respect to senior members of a company is crucial.
  • Face and Harmony: Maintaining harmony and avoiding confrontation is important. Criticizing someone publicly or causing another person to “lose face” can damage relationships.
  • Gift Giving: While not mandatory, gift-giving is common in Vietnamese business culture, especially during holidays. However, limit the value of gifts to avoid perceptions of bribery.

b. Language

While Vietnamese is the official language, many business professionals in larger cities like Hanoi and Ho Chi Minh City speak English, especially in the younger generation. However, hiring local translators or interpreters is advisable for legal and formal negotiations.

c. Workforce and Labor Market

Vietnam has a young, dynamic, and educated workforce. However, there are regional differences in skill levels and availability of workers. Major urban areas like Hanoi and Ho Chi Minh City have a more skilled labor pool compared to rural regions.

Key Considerations:

  • Understand the importance of long-term relationships and trust-building.
  • Be mindful of communication styles, including non-verbal cues.
  • Consider cultural sensitivity when introducing new management or production techniques.

2. Political Environment

a. Government Structure

Vietnam is a socialist republic with a single-party system led by the Communist Party of Vietnam (CPV). The government plays a significant role in the economy, particularly through state-owned enterprises (SOEs). While the business environment is generally stable, the government maintains strict control over political activities and media.

b. Foreign Investment Policy

Vietnam has been actively encouraging foreign direct investment (FDI), especially in sectors like manufacturing, technology, and renewable energy. The government offers various incentives for foreign investors, such as tax holidays, land-use rights, and import duty exemptions.

Key Considerations:

  • Stay updated on government policies regarding foreign investment, as regulatory changes can impact market entry or expansion.
  • Be aware of the government’s long-term economic plans, such as Vietnam’s Socio-Economic Development Strategy (2021-2030), which focuses on industrialization and modernization.

3. Rule of Law

a. Legal Framework

Vietnam has made significant improvements in its legal framework to protect foreign investors. The country operates under a civil law system, primarily influenced by French law. Key areas of business law include contract law, tax law, intellectual property law, and corporate law.

b. Enforcement of Contracts

While Vietnam has modernized its legal system, enforcement of contracts can be slow and inconsistent. Vietnam ranks relatively low in the World Bank’s “Enforcing Contracts” category, with disputes often taking longer to resolve compared to neighboring countries.

c. Corruption and Transparency

Vietnam has made efforts to combat corruption, but it is still a challenge in certain sectors, particularly in dealings with state-owned enterprises and government officials. The government has established various anti-corruption measures, but foreign businesses should remain vigilant.

Key Considerations:

  • Engage local legal experts familiar with Vietnamese law to navigate complex regulations.
  • Ensure that contracts are detailed and clear, with all terms well-documented.
  • Be prepared for potential delays in judicial processes and dispute resolution.

4. Foreign Exchange and Financial Considerations

a. Currency

Vietnam’s currency is the Vietnamese Dong (VND). The exchange rate is relatively stable, but currency fluctuations can occur due to international trade dynamics, especially given Vietnam’s dependence on exports.

b. Foreign Exchange Regulations

Vietnam has strict foreign exchange controls. Businesses can freely convert the Dong to foreign currencies for current account transactions, such as payments for goods, services, and dividends. However, capital account transactions (e.g., transferring capital abroad) may require approval from the State Bank of Vietnam (SBV).

c. Banking and Financial System

Vietnam’s financial system is undergoing reforms to modernize its banking sector and improve access to capital. Foreign investors may find local financing options limited, though foreign banks are increasingly active in Vietnam.

Key Considerations:

  • Monitor exchange rate risks if your business depends heavily on imports or exports.
  • Familiarize yourself with foreign exchange regulations to ensure compliance.
  • Consider working with local banks or international banks that have a presence in Vietnam for smoother transactions.

5. Taxation System

Vietnam has a relatively simple tax system, but it is important to be aware of its intricacies as they apply to foreign investors.

a. Corporate Income Tax (CIT)

The standard Corporate Income Tax (CIT) rate in Vietnam is 20%, though certain industries and geographical areas may enjoy preferential rates. Tax incentives are available for projects in high-tech, renewable energy, and infrastructure development.

b. Value-Added Tax (VAT)

Vietnam imposes a Value-Added Tax (VAT) rate of 10% on most goods and services, although some essential goods are subject to a reduced rate of 5%. Exports are generally zero-rated for VAT purposes.

c. Personal Income Tax (PIT)

Vietnam has a progressive Personal Income Tax (PIT) system with rates ranging from 5% to 35%, depending on income levels. Foreign employees working in Vietnam are subject to the same tax rules as Vietnamese citizens.

Key Considerations:

  • Ensure compliance with tax reporting requirements and deadlines to avoid penalties.
  • Take advantage of available tax incentives for foreign investors.
  • Consult with tax specialists who are experienced in Vietnamese law for complex tax matters.

6. Foreign Trade and Investment

a. Free Trade Agreements (FTAs)

Vietnam is a signatory to several important Free Trade Agreements (FTAs), including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP). These agreements offer tariff reductions and market access benefits for foreign businesses operating in Vietnam.

b. Export-Import Regulations

Vietnam has simplified its customs procedures in recent years, making it easier for businesses to trade internationally. However, certain products, such as pharmaceuticals, chemicals, and electronics, may be subject to specific import licenses or technical regulations.

Key Considerations:

  • Research the benefits of Vietnam’s trade agreements to determine how they can reduce your costs.
  • Familiarize yourself with customs procedures and documentation requirements to avoid delays in the import/export process.

7. Political Stability and Market Potential

a. Political Stability

Vietnam has enjoyed political stability for decades, which has contributed to its attractiveness as a destination for foreign investment. The country’s one-party system ensures a predictable policy environment, though it also limits political freedoms.

b. Market Potential

Vietnam is one of the fastest-growing economies in Southeast Asia, with GDP growth averaging around 6-7% annually. The country’s growing middle class, young population, and increasing urbanization present significant opportunities for businesses, especially in sectors like consumer goods, technology, and infrastructure.

Key Considerations:

  • Vietnam’s political stability is a significant advantage, but stay informed on government policies that may affect your business.
  • The expanding domestic market offers opportunities for both consumer-facing and industrial products.

Key Resources for Doing Business in Vietnam

  1. Vietnam Chamber of Commerce and Industry (VCCI)
    Website: https://vcci.com.vn
  2. Vietnam Ministry of Planning and Investment (MPI)
    Website: https://www.mpi.gov.vn
  3. General Department of Taxation (GDT)
    Website: https://www.gdt.gov.vn
  4. Vietnam International Arbitration Centre (VIAC)
    Website: https://www.viac.org.vn
  5. State Bank of Vietnam (SBV)
    Website: https://www.sbv.gov.vn

Our Members Include Leading Organizations in Vietnam

Sunrise Events Vietnam LLC- member-of-the-international-trade-council
KPMG Tax and Advisory Limited Branch- member-of-the-international-trade-council
ITL (In Do Trans Logistics Corporation)- member-of-the-international-trade-council
Gia Long Construction & Exhibition Company Limited- member-of-the-international-trade-council
Alliance International Logistics- member-of-the-international-trade-council

Ask our Experts on Doing Business in/with Vietnam

If you’re looking to do business or invest in Vietnam, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.

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