Currently, the general trend of immigrants coming to Vung Tau in particular, or Vietnam in general, is to seek new opportunities for business and their future. Nowadays, more and more expats tend to go to Vung Tau or Vietnam to work. This article will provide information and rules that you need to keep in mind if you are planning about doing business in Vung Tau, Vietnam 2019.
Knowledge about starting a business in Vietnam
If you have the courage to initiate a startup business, what are your Mission and Vision?
Is the Mission you set out to make money, expand relationships, or you want to change the political economy or this country? The company’s mission is a statement of purpose or intent that makes the company exist. The commission will focus attention, inspire employees and be the criteria for appraising strategic choices.
Vision means describing the future with some special methods that make it better than reality. The vision of industry strategy has always been a big challenge for companies. It describes people and organizations unlike the present, but the perspective they will achieve in the future.
A vision often starts with what leaders care about most and is committed to achieving it. A vision is considered effective when it includes the following characteristics:
- Clear and Vital
- Express a better future
Besides, if you want to find out how to set up business in Vung Tau, Vietnam, the most important thing is the orientation you are going to invest.
For instance, if you want to open a company in tourism, furniture, machinery, or anything, you need to build a clear roadmap.
Nowadays, there are many foreigners doing business in Vung Tau, Vietnam 2019. But you should note that starting a business is understood simply by pursuing risky decisions in the future. Starting a market is an indispensable process in business but due to the risk nature, not all businesses start up successfully.
Currently, there are two most common types of marketing entities for international investors in Vietnam:
- Limited Liability Company (LLC)
- Joint Stock Company (JSC).
For Limited Liability Company, this is a small to medium-sized company. This is a company with a form of 1 – 50 founders, and you should note that LLC in Vietnam cannot issue shares and is clearly listed on the local stock market.
For a larger-form Joint Stock Company, the corporation needs at least 3 founders, and Vietnam Joint Stock Company can share stock and preferential issues, shares can be recorded on the Public Stock Exchange.
Time for getting a business license
The company setup process generally takes about 1 to 3 months. This process includes collecting, submitting relevant documents and also includes contacting the state agencies.
The amount of capital needed
In Vietnam, you do not need to determine the minimum amount of investment required to establish a company.
However, investors must demonstrate they have enough capital to run the startup company. To prove sufficient financial capacity, investors are required to provide certified balances in banks.
In fact, you need to have at least $50,000 – $100,000 to commence a startup business.
After the company is established, investors are required to transfer that amount into the company’s account.
Investors will have at least 3 months to entirely assign the registered charter capital to the Joint Stock Company and not exceed 36 months to fully transfer the registered charter capital to the Limited Liability Company.
In the manner of providing information to Vietnamese state agencies, investors need to provide the exact address of the company. In addition, the competent authority will require you to provide a lease agreement with the lessor’s land use right certificate, or a land title certificate.
Tips for setup a business in Vung Tau, Vietnam
Being a foreigner, it’s better to know some shortcuts to achieve your goals abroad.
Find a savvy services
Currently, it is not too difficult to find services to help foreigners set up a foreign company in Vung Tau, Vietnam.
You can find service companies, specializing in helping foreigners determine regulations and laws in Vietnam. These services will help you solve, translate and submit papers or licenses related to inaugurating the company.
If you have a tight budget, you can find a good local lawyer to comprehend more about Vietnamese laws when starting a business in Vung Tau, Vietnam as a foreigner.
Cooperate with a Vietnamese investor
It should be easier to register, apply for a company license and do business in Vung Tau if you could cooperate with a reputation Vietnamese investor.
Things will go easier if you boot up your business with a big fish in a local pool.
Challenges of doing business in Vietnam
Have you ever wondered what are the challenges of doing business in Vietnam?
Do not forget that Vietnam is still a developing country. So there are certain limitations and difficulties when you do market in Vung Tau in general, and Vietnam in particular.
Here are the notes:
– Take much time for the documents. In addition to the predicament of taking at least 3 months for investors to register for papers, information and waiting for a license from a competent authority, you should also perceive that every commencement is always tricky.
Vietnamese legal authorities will ask you for Investment Registration Certificates, Business Registration Certificates, etc and they all take a lot of time.
– Choose an office address. Moreover, before registering a startup company, you need to find a suitable office address and this also will need a lot of time. So, from the beginning, you need to be patient to do it step by step.
– Look for a reliable assistant. Finding a reputable assistant and knowledgeable about laws to help you during this process is also one of the challenges of doing business in Vietnam.
Other minor difficulties. You are probably facing some crisis, including but not limited:
- Lack of Intellectual Property Rights (IPR)
- Limited infrastructure
- Vietnamese laws
- Language barriers
For IPR, Vietnam has the regulations in place to protect Intellectual Property Rights, the enforcement is still vulnerable. You must take the necessary solutions to preserve your IP before consigning. If faced with an infraction, you must work with the relevant inspectorates in several ministries.
Investors need to consider carefully the legal. As a result of starting into numerous international free trade transactions, Vietnam has amended domestic enactment, although there are still discrepancies.
Do not forget that everything related to investment, opening companies takes certain risks, and every success takes a lot of time. Analyze and understand every law, condition, and information about which city or country you want to work.
In short, doing business in Vung Tau, Vietnam 2019 or any other country right from the beginning will be extremely challenging. You should remark that not all expats inaugurate a company in Vietnam is always successful. Draw yourself a clear and specific route. Always remember that opening a company is not easy, so determine that anything can happen.