This is one of a series of Global Business Guides designed for businesses wishing to expand into another country/territory. This Global Business Guide was produced in January 2016. The materials contained in this document provide a snapshot at that time and were based on the law enforceable and information available at that time.
Vietnam is the ninth most attractive destination in the world for foreign investment, in accordance with UNCTAD's World Investment Prospects Survey. Consequently, foreign direct investment (FDI) flows continue to grow; FDI inflows into Vietnam jumped 17.4 per cent in 2015 to a record of USD14.5 billion.
Vietnam ranked 90th in the World Bank's 2016 Doing Business rankings, rising from 93rd in the year prior. The rankings recognised a number of reforms enacted to make doing business easier. These include making starting a business easier by reducing the time required to get the company seal engraved and registered. The government also made paying taxes less costly by reducing the corporate income tax rate and reducing the number of procedures and filings for VAT and social security contributions. Further reforms were made across the following topics: Getting Credit, Resolving Insolvency and Getting Electricity.
Key facts about starting a business in Vietnam:
Vietnam's attractiveness as an investment location can be attributed to a number of factors, including its young population and growing economy. Nevertheless, in order to make an informed decision, it is critical to understand the nuances of any local regime. The manner in which people conduct business in Vietnam may differ from the home countries of investors. Furthermore, variations on these distinctions may exist depending on the region and the industry in which a company operates.
Vietnam's official language is Vietnamese and therefore the lingua franca of business. Business in Vietnam is formal and seniority is important. Business attire is conservative. A handshake is the typical business greeting and will be used at the beginning and end of a meeting. Business cards will usually be presented after initial introductions.
Those looking to establish a business in Vietnam may look across Southeast Asia for alternative options. However, Vietnam can be differentiated on the following factors:
While there are significant opportunities for investment in Vietnam, a number of challenges remain. The legal and regulatory framework is still evolving and changes can be unpredictable. A lack of transparency means that bureaucracy and corruption are still commonplace. The country also requires significant infrastructure updates.
This guide has been developed to provide businesses with an overview of Vietnam, its legal regime, start-up and market entry considerations, tax and customs requirements and a general summary of the factors that may affect the decision to do business in Vietnam. However, the information contained in this document is generic in nature and you should not act or rely on it without obtaining specific professional advice.
Please note that the Global Business Guides may only be available in English.
|1||Ministry of Planning and Investment|
|2||General Department of Taxation|
|3||General Department of Vietnam Customs|
|4||National Office Of Intellectual Property Of Vietnam|
|5||Ministry of Information and Communications|
|6||Foreign Investment Agency|
|7||Ministry of Labour, Invalids and Social Affairs|
|1||UNCTAD World Investment Report|
|3||Doing Business Rankings|
|5||GDP growth rate|
Download Global Business Guide - Vietnam (4.36MB, PDF)
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