Starting a business in Vietnam as a foreigner

All this has been covered before so take the time to read other threads here for the information. Use the search facility top right hand corner of this page.

And further to stumpy's comment :

Good luck with that!

E(x)scuse Moi!!    I'm in charge of cynicism here...     

..besides, I'm still trying to recover from No. 7........   (gaakkk, choke, etc)

But then, wotif he knows sumfingk we might have messed..?    (Nah)

I'll go with stumpy. 

I thought that horse had been flogged too much before.     

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Just so, Bazza. Just so.

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Beed wrote:

I just wanted to check, I would like to register a small company (basically just me, a foreigner doing some IT consulting work for clients). But I prefer to work as a company rather than a sole-trader/contractor for a couple of reasons including some clients' requirements. Now, I would like to ask if someone on this forum has some information on how things work there:
1- Is this a DIY job (like it is in some countries) or rather involved process that requires a lawyer or accountant (if so, any suggestions/recommendations of lawyers/accountants)
2 - Does anyone know how much the process would cost, more or less - including lawyer's fees estimates?
3 - Are professional fees negotiable in VN once quoted?
4 - Do I have to be there during the duration of the process?
5 - What documents do I need to bring with me? Do I have to have copies certified/notarized at the Vietnamese embassy here?
6- In case you are familiar with the Vietnam tax regime, what would be the tax rate for this type of business (simple one man IT consulting- no shareholders, no partners, no employees, very simple)?
7 - How easy will it be to take money out of Vietnam, if needed?

I would prefer someone in Ho Chi Minh.

Thanks

Beed

Better to you register a company in New Zealand and work in Vietnam if you want.

Beed wrote:

I just wanted to check, I would like to register a small company (basically just me, a foreigner doing some IT consulting work for clients). But I prefer to work as a company rather than a sole-trader/contractor for a couple of reasons including some clients' requirements. Now, I would like to ask if someone on this forum has some information on how things work there:
1- Is this a DIY job (like it is in some countries) or rather involved process that requires a lawyer or accountant (if so, any suggestions/recommendations of lawyers/accountants)
2 - Does anyone know how much the process would cost, more or less - including lawyer's fees estimates?
3 - Are professional fees negotiable in VN once quoted?
4 - Do I have to be there during the duration of the process?
5 - What documents do I need to bring with me? Do I have to have copies certified/notarized at the Vietnamese embassy here?
6- In case you are familiar with the Vietnam tax regime, what would be the tax rate for this type of business (simple one man IT consulting- no shareholders, no partners, no employees, very simple)?
7 - How easy will it be to take money out of Vietnam, if needed?

I would prefer someone in Ho Chi Minh.

Thanks

Beed

Sorry Beed, I think you have Vietnam confused with someplace else,.
Having said that, I'll sum up the situation for you: you can do all of the above, you will make many people around you very happy and make them much money, you will then have to pay them more to get what money you have left out of the country.
By my careful calculations, after 3 years of work, you should be able to leave with 89,000 vnd.

I hope this helps.

I'll do a follow up when I'm not busy. but Wxx3 is wrong, it's not nearly that bad. If you choose the correct bank, and do as much of the process as you can by yourself, it will still cost more than a local doing it, but it's really not that awful, and you can take your money out whenever you please if you choose a decent bank.

I'll write an actual response later tonight or tomorrow with some helpful details and tricks.

Took a few days longer than anticipated... but anyways here's some additional information.

If you want the process to be a million times either do one of the following.
1. Have a Vietnamese friend that you trust to name the business under.
2. Partner with a Vietnamese person.


If you are unable to do either each step will either take substantially longer or be more expensive. You can hire a law firm to do everything for you for about $600-1.2k for an English speaking firm probably. Depending on what you value your time at this may be a viable option.

For banks I'm a HUGE fan of SHB. I've had issues with Vietcom and HSBC in the past. Remember when sending money or doing anything at the bank that middle names are heavily regarded as part of your full name here in Vietnam. You can get around 7% with savings accounts (monthly expiry) here which is pretty nice for money that I don't keep in my brokerage and it's pretty flexible.

When law firms quote you I'm not certain how flexible they will be.... I wouldn't get your hopes up. As far as taking your money out of Vietnam you can either wire it or take it out as cash and maybe convert to gold or dollar.

My apologies!!  I'd forgotten this and it won't happen again!!!

Thank you,
Maria

Thank you for response. I am also thinking about starting a small one-person operation in HCMC but have the same concerns about extent of regulation, related costs and informal other costs. Having recently spent lengthy periods in Vietnam, I have heard horror stories of some businesses people, who feel ripped-off by corruption, bribery and other patronage costs. Seemingly, this is a reality in Vietnam and I am loathe to dismiss it out of hand. Any concrete examples of things that could go wrong, would be appreciated.

Concrete examples of the (infinite) failures..?

Do it the easy way.    Read the stories of those who survived.

..they may well be mythical, but whose nose...     
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Hey Navine,

I'm not sure how long you've been in the country,  but it might be worth the investment of your time to spend a couple years here and judge for yourself.

I've been here almost 5 years and I know I wouldn't start anything retail oriented. Maybe B2B, Ex-Im, wholesale or real estate. Anything else is too risky in my book,  but that's from my book of VN experiences.

You may want to find out what this country is like before you try your hand in business, it might be a good thing to do because as Dorothy once said "We're not in Kansas anymore"

Hi Buddy, thank you for this. I am currently back in South Africa after spending 3 months in Vietnam recently. Having networked socially and through the South African embassy in Hanoi, I am aware of the "cultural" practices which require rewards, in order to get things done. I also know that many young Vietnamese do not approve of these practices, paying for favours, which extends across all levels of Vietnamese society. In South Africa we coming out of the worst corruption by our previous president and the country is struggling to root out unsavoury business practices. In Vietnam however, this is not the way to do business - personal favours seem to be necessary ; I am aware of it and will not invest in property, manufacturing or trade of physical goods there. I will however, establish a service business. My sills in business mentorship, especially concerning relationships with the english-speaking world, could be very helpful. The risk appears to be relatively low. I think it will be important to have a Vietnamese partner (whom I have found) and am prepared to risk a few thousand dollars, to start-up. My research on the various business processes continues. I look forward to any insights which you and others may offer. Thanks.

I believe he wants to work as a 'Digital Nomad'  is that a business that is regulated in Vietnam??  I read his reasons for establishing a 'Company' in Saigon for this, but I am not sure this is considered as 'work' since it is not a tangible entity.  i.e., can't touch, feel, taste or smell it  -  this type of work is a gray area in Thailand, wonder if it is the same in Vietnam.

vladsavin wrote:

Hi there,

Starting a business in Vietnam can be quite a thorough process, but as long as you follow the basic procedures it is quite convenient in the end. Firstly, you can own your 100% foreign business in Vietnam, and most of the business license are unrestricted for foreign ownership (some of them are restricted or conditional, ex travel agency or logistics co). The foreign owned entity set-up involves getting the investment and enterprise registration certificates and applying for a specific business license or licenses, all together in a timeline of approx 6 weeks. The documents needed are legalized passport and proof of funds for the charter capital with a letter from the bank. 90 days after the ERC is out, the investor must bring the funds into Vietnam through the dedicated capital account.

Let me know if you want to talk more details, this is what I do in Vietnam, support and advise foreign investors with their market entry and company establishment. You can write me an email at [email protected]

Thanks,

Vlad

Would I like to know you 100% local? Do you know what difficulties are going to face once foreigners stabilise the business in Vietnam? Providing necessary information can get anywhere. Could you tell me a bit about what kind of business categories & what kind of function the government allow to access with there types foreigners can allow doing in Vietnam?