Foreigner setting up a cafe in VN

@Joe Su

For what it's worth:  I also considered setting up a small business here and I have VN wife so could have used her as the principal.  However, after looking at the bureaucracy and chances for all sorts of obstacles I decided it was far wiser just to leave my money invested overseas. A pity but a current reality.

Also, I have watched MANY Vietnamese try to start businesses and fail within months.  I suggest doing very careful market research first  Many of my wife's friends talk of having to shut down their businesses because of poor custom.

Hello Joe Su,

Welcome to Expat.com 😀

In the meantime, while waiting for feedback, I recommend taking a moment to read the following article:

Starting a business in Vietnam

Cheers,

Cheryl

Expat.com team

You might also want to consider a joint venture op, as the full foreign-invested process (IRC → ERC → post-licensing, bank setup, etc.) can easily take up to 6 months depending on the province and business line. A JV can simplify part of the procedure and reduce some ongoing costs

If you need more details, feel free to DM me, I’ve helped quite a few foreigners set up their businesses here, among other things

@KKK36

Indeed it is very challenging for small business to survive. From the quotations I have received, it seem like landlord are expecting to rent out their place from 3,000 to 5,000 USD per month. In additional, accounting firms are also charging at 150 to 200 USD monthly. Let alone there is a “coffee money” culture as well. This easily add up to 7,000 to 8,000 USD on monthly operation. But based on cost of living and typical Vietnamese salary. I am not sure is this a reasonable investment commitment as I have no prior business experience. Perhaps, consultation or specialty services can seek for higher premium to cover up the cost. But for small cafe businesses. It seem very difficult or impossible to run…

** Originally, I thought VN might be a good place for me to try doing something I like. But thinking deeper again. Even though Singapore rental (for a small kiosk store) can cost like 4,000 to 5,000 SGD but there is no need accounting firms (typically the owner can setting it). Also, registering a business is very easy and cost maybe 300 SGD under ARCA. Sum up commitment and earning based on SGD... it seem more attractive to set up at Singapore

...What are other alternative path I can consider? I will be glad to know more about your insight on this. Thank you! - @Joe Su

That depends: Is your main goal a successful business with acceptable ROI?

Or are you motivated--as many foreigners are--by a desire to escape the tourist visa system and establish long-term residency here?

If that is the case for you, you would probably find it simpler to qualify for an investment visa.

Depending on the amount you are willing to invest that can qualify you for a 3-year or 5-year or 10-year temporary resident card (TRC)

@KKK36
Indeed it is very challenging for small business to survive. From the quotations I have received, it seem like landlord are expecting to rent out their place from 3,000 to 5,000 USD per month. - @Joe Su

That's definitely true.

A good friend of mine here in Đà Nẵng recently attempted to sell his turnkey business, but didn't get any takers. He even told me he would have been willing to simply turn the whole thing over to someone else to keep from giving it all to the landlord (he owned a restaurant business near Mỹ Khê Beach).

That got me interested until I found out that the current monthly rent would be ₫60,000,000 VNĐ

😱

Hello

Foreign Investment and Business in Vietnam: A Reality Check

The Warning: Avoiding Local Control

As a foreigner, you cannot operate fully like a native Vietnamese person unless you surrender all legal documentation (often to a local nominee who may seize control once the business becomes profitable).

The Only Safe Solution: The FIE

Your sole and unique solution is to establish a Foreign Invested Enterprise (FIE) by securing an Investment Registration Certificate (IRC). This crucial step guarantees your right to repatriate your dividends or the proceeds from the sale of your company abroad. This way, you remain the sole master of your own business.

Day-to-Day Operations

Operational requirements—including accounting, tax (VAT/CIT), necessary permits, and safety/hygiene certifications—are the same for foreign and local businesses.

Mandatory Audits

You will also be subject to a mandatory Statutory Audit, performed every X to X years (typically 1 to 5 years) depending on the amount of capital invested. The lower the invested capital, the more frequently the audit is required.

The Failure Rate

A critical note: 90% of foreigners who launch businesses fail within 3 years. This high turnover rate is often attributed to a failure to conduct thorough, serious feasibility studies before launching.

It is obvious that there are greater headwinds for a foreigner starting a business in VN.  However, it's worth keeping in mind that the failure rate on starting a new business in any country is high.😉

Hello
Foreign Investment and Business in Vietnam: A Reality Check
The Warning: Avoiding Local Control
As a foreigner, you cannot operate fully like a native Vietnamese person unless you surrender all legal documentation (often to a local nominee who may seize control once the business becomes profitable).
The Only Safe Solution: The FIE
Your sole and unique solution is to establish a Foreign Invested Enterprise (FIE) by securing an Investment Registration Certificate (IRC). This crucial step guarantees your right to repatriate your dividends or the proceeds from the sale of your company abroad. This way, you remain the sole master of your own business.
Day-to-Day Operations
Operational requirements—including accounting, tax (VAT/CIT), necessary permits, and safety/hygiene certifications—are the same for foreign and local businesses.
Mandatory Audits
You will also be subject to a mandatory Statutory Audit, performed every X to X years (typically 1 to 5 years) depending on the amount of capital invested. The lower the invested capital, the more frequently the audit is required.
The Failure Rate
A critical note: 90% of foreigners who launch businesses fail within 3 years. This high turnover rate is often attributed to a failure to conduct thorough, serious feasibility studies before launching. - @berpasfrvn

Are you simply going to post answers you received from your favorite AI program?

It's really obvious that's what you've been doing recently

@OceanBeach92107

Albeit, humanized.

@OceanBeach92107

Absolutely not. This is simply the process I followed for my second venture in Vietnam. If it looks like something an AI would do, it just means it's current, which I'm happy about.

You might also want to consider a joint venture op, as the full foreign-invested process (IRC → ERC → post-licensing, bank setup, etc.) can easily take up to 6 months depending on the province and business line. A JV can simplify part of the procedure and reduce some ongoing costs
If you need more details, feel free to DM me, I’ve helped quite a few foreigners set up their businesses here, among other things - @KB Vu

Also, if your plan is a small café, maybe check out some local franchise options too. A few brands here have really simple, ready-to-use systems

Going full FDI for a small F&B setup can get a bit heavy and pricey. A JV tends to be the easier path unless you’re aiming for something larger or involving import/export

Just an extra perspective that might help!!!