Set up company in Vietnam and comply

  Vietnam’s economy is increasingly diversified in terms of business activities and business regulations are also constantly being improved and enhanced. Accordingly, foreign investors can freely choose the right type of business to set up company in Vietnam.  After the investors set up company in Vietnam, the continuous procedures to comply is always a matter of great interest to foreign investors.

Why it is important to comply with the laws after the investors set up company in Vietnam?

Complying with the law after the investors set up company in Vietnam is of utmost importance for several key reasons.

Firstly, legal compliance ensures that your company operates within the boundaries of the law, avoiding any potential legal repercussions or penalties. Vietnam has specific regulations and requirements that businesses must adhere to, such as tax obligations, labour laws, environmental regulations, licensing requirements, and corporate governance standards. By following these regulations, you demonstrate your commitment to ethical business practices, maintain a positive reputation, and reduce the risk of legal disputes or regulatory actions.

Secondly, legal compliance fosters a stable and sustainable business environment. Adhering to the law helps create a level playing field for all market participants, promoting fair competition and ensuring that businesses operate on a fair and equitable basis. Compliance also enhances transparency and accountability, which can attract potential investors, partners, and customers who value companies with strong ethical practices. By establishing a reputation for legal compliance, your company is more likely to build long-term trust and maintain fruitful relationships with stakeholders.

Furthermore, compliance with the law safeguards the rights and interests of your employees. Labour laws in Vietnam provide essential protections for workers, such as fair wages, working hours, occupational safety, and social insurance. By complying with these regulations, you create a safe and equitable working environment, fostering employee satisfaction, loyalty, and productivity. Prioritizing legal compliance in Vietnam also minimizes the risk of labour disputes, ensuring harmonious and productive relationships with your workforce.

Lastly, legal compliance contributes to the overall economic development and stability of Vietnam. When businesses operate in accordance with the law, they contribute to a robust and sustainable economy. Compliance supports government initiatives, such as tax revenue generation, social welfare programs, and infrastructure development, which benefit the country as a whole. By fulfilling your legal obligations, you actively participate in the growth and progress of Vietnam’s business ecosystem.

What are steps to follow to set up company in Vietnam and comply with the laws?

With the promulgation of the enterprise law, the business setting up process has been adjusted with many favorable regulations for investors.  However, in order for a business to start up and comply in operation, the following basic steps should be noted:

The first step is to set up company in Vietnam. To take this step, the investor first needs to determine the type of business to choose to establish and provide the business name and expected information. Accordingly, the composition of the enterprise establishment dossier will be prepared according to regulations and submitted at the Business Registration Office, the Department of Planning and Investment of the place where it is expected to be headquartered. After submitting a valid application, the enterprise will be granted an enterprise registration certificate and announced the registration contents on the National Business Registration Portal.

The second step is to publish the contents of business registration. After being granted an enterprise registration certificate, an enterprise must make a public announcement on the National Business Registration Portal.

In the third step, the enterprise conducts stamp engraving. Enterprises can request to make a seal from the seal making agent. Accordingly, the enterprise actively decides on the type, quantity, form and content of the seal and is solely responsible for the use of its legal entity seal.

Fourth step is that to open a bank account in Vietnam. Currently, businesses can choose a bank to open an account for their business, to open an account, the bank requires an application form issued by the bank, a seal sample, the company’s charter, and a certificate. Business registration and related documents are required by different bank.

The fifth step is to register the tax declaration form in Vietnam. Accordingly, enterprises register for the use of e-invoices and notify the use of e-invoices to their tax authorities. Enterprises need to contact the invoice supplier to order the printing of value-added invoice books and must register self-printed invoices with tax authorities.

In the sixth step, the enterprise needs to conduct labor registration in Vietnam. Enterprises register with the Department of Labor, War Invalids and Social Affairs to declare the use of labor. Within 30 days from the date of commencement of operation, the employer must register the employer to the Labor Department (according to the prescribed form). In addition, enterprises should note that the relationship between the employer and the employee is regulated by the Labor Code and specified in the labor contract.

Seventh step is to register for social insurance in Vietnam. Enterprises register with the Social Insurance Agency to pay health insurance and social insurance for employees. Employers must fill in all information according to the form provided by social insurance, including: full name, date of birth, salary (recorded in labor contract), number of social insurance book (for employees who have been issued with a book), a certified copy of the company’s business registration certificate and a copy of each labor contract.

How a consulting firm in Vietnam could help set up company in Vietnam and stay complied?

It can be seen that in order for the investors to set up company in Vietnam, it requires investors to carry out a number of procedures and comply with many different regulations of tax, banking, labour, insurance… Therefore, besides learning about legal regulations and businesses can seek the support of professional consulting firm to set up company in Vietnam with expertise and experience in the field of business establishment to implement the process quickly and effectively.

Compliance with the law after the investors set up company in Vietnam is essential for maintaining a strong legal standing, fostering a fair and transparent business environment, protecting the rights of employees, and contributing to the sustainable development of the country’s economy. By upholding legal compliance, your company can thrive and build a solid foundation for long-term success in Vietnam while doing business in Vietnam.

Source: https://www.antconsult.vn/news/7-basic-steps-to-set-up-a-business-and-comply-with-vietnam-laws.html

7 basic steps to set up a business and comply with Vietnam laws

  Vietnam's economy is increasingly diversified in terms of business activities and business regulations are also constantly being improved and enhanced. Accordingly, foreign investors can freely choose the right type of business.  Therefore, the set up company in Vietnam is always a matter of great interest to foreign investors whom find business opportunities in Vietnam.

With the promulgation of the enterprise law, the business setting up process has been adjusted with many favorable regulations for investors. However, in order for a business to be set up and be complied in operation, it must go through the following basic steps:

The first step is to set up a business in Vietnam. To take this step, the investor first needs to determine the type of business to choose to establish and provide the business name and expected information. Accordingly, the composition of the enterprise establishment dossier will be prepared according to regulations and submitted at the Business Registration Office, the Department of Planning and Investment of the place where it is expected to be headquartered. After submitting a valid application, the enterprise will be granted an enterprise registration certificate and announced the registration contents on the National Business Registration Portal.

The second step is to publish the contents of business registration. After being granted an enterprise registration certificate, an enterprise must make a public announcement on the National Business Registration Portal.

In the third step, the enterprise conducts stamp engraving. Enterprises can request to make a seal from the seal making agent. Accordingly, the enterprise actively decides on the type, quantity, form and content of the seal and is solely responsible for the use of its legal entity seal.

Fourth step is that to open a bank account in Vietnam. Currently, businesses can choose a bank to open an account for their business, to open an account, the bank requires an application form issued by the bank, a seal sample, the company's charter, and a certificate. Business registration and related documents are required by different bank.

The fifth step is to register the tax declaration form in Vietnam. Accordingly, enterprises register for the use of e-invoices and notify the use of e-invoices to their tax authorities. Enterprises need to contact the invoice supplier to order the printing of value-added invoice books and must register self-printed invoices with tax authorities.

In the sixth step, the enterprise needs to conduct labor registration in Vietnam. Enterprises register with the Department of Labor, War Invalids and Social Affairs to declare the use of labor. Within 30 days from the date of commencement of operation, the employer must register the employer to the Labor Department (according to the prescribed form). In addition, enterprises should note that the relationship between the employer and the employee is regulated by the Labor Code and specified in the labor contract.

Seventh step is to register for social insurance in Vietnam. Enterprises register with the Social Insurance Agency to pay health insurance and social insurance for employees. Employers must fill in all information according to the form provided by social insurance, including: full name, date of birth, salary (recorded in labor contract), number of social insurance book (for employees who have been issued with a book), a certified copy of the company's business registration certificate and a copy of each labor contract.

It can be seen that setting up a business requires businesses to carry out a lot of procedures and comply with many different regulations of tax, banking, labor, insurance... Therefore, besides learning about legal regulations and businesses can seek the support of professional consulting firm in Vietnam with expertise and experience in the field of business establishment to implement the process quickly and effectively.

Source: https://www.antconsult.vn/news/7-basic-steps-to-set-up-a-business-and-comply-with-vietnam-laws.html

Assistance In Setting up Business Venture in Vietnam

  To help Clients start business in Vietnam, ANT Consulting introduces the service to assist in set up business venture in Vietnam.

Foreign investors could make direct investment in Vietnam through setting up one hundred per cent (100%) capital of foreign investors, or establishing joint venture between domestic and foreign investors, or  investing in the contractual forms of: BCC, BO, BTO, and BT

Types of enterprise for foreign investors to invest in Vietnam are as following:

Limited Liability Company 

A limited-liability company may not issue securities to mobilize capital.

Joint Stock Company

The main difference between Joint Stock Company and Limited Liability Company is the Joint Stock Company can raise funds by offering shares or securities.  In addition, an enterprise tends to join the Stock exchanges or public company must be a Joint Stock Company.  Management system of Joint Stock Company is more complicated than Liability Company.

Partnership

Unlimited liability partners must be individuals who shall be liable for the obligations of the company to the extent of all of their assets.  Limited liability partners shall only be liable for the debts of the company to the extent of the amount of capital they have contributed to the company.

Representative Office of Foreign Trader

Representative Office is not allowed to directly conduct profit making activities in Vietnam (i.e: the execution of contracts, direct payment or receipt of funds, sale or purchase of goods, or provision of services)

Branch of Foreign Trader

The Branch is permitted to conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

Investing by Signing Contracts

Business co-operation contract (BCC) means the investment form signed between investors in order to co-operate in business and to share profits or products without creating a legal entity.

Build-operate-transfer contract (BOT) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration; and, upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam.

Build-transfer-operate contract (BTO) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits.

Build-transfer contract (BT) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits or to make a payment to the investor in accordance with an agreement in the BT contract.

Foreign investors may sign BOT, BT and BTO contracts with a competent State body to implement infrastructure construction projects in Vietnam. Typically, the contracts are for projects in the fields of transportation, electricity production, water supply, drainage and waste treatment.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Source: https://www.antconsult.vn/news/assistance-in-setting-up-business-venture-in-vietnam.html

IHI Corporation (Japan) Wants to Participate in Transportation Projects in Hai Phong

  Japan is a familiar investor in the Vietnamese market, many Japanese companies have set up business in Vietnam and IHI Corporation is not an exception.

Recently, Hai Phong People's Committee has been working with the delegation of IHI Corporation (Japan) to explore opportunities to participate in transportation projects in Hai Phong. At the meeting, Mr Atsushi Kutawa - Managing Director of Operations, President in charge of business of IHI Corporation has talked about the company's business situation with city leaders.

In particular, IHI has successfully built Binh bridge (Hai Phong) and Nhat Tan bridge (Hanoi). In 2015, the Group has built the IHI Infrastructure Asia (IIA) plant at Dinh Vu Industrial Park, which specializes in the manufacture of steel structures, supplying for bridge construction projects, thermal power plants and engineering facilities, serving for key construction works in the city.

Through investigation, it is known that there are plans to deploy Hai Phong transportation expansion projects, in which Nguyen Trai bridge and many key bridges connecting trade between the city and the northern provinces will be built. Hence, IHI Corporation wishes to have the opportunity to contribute their accumulated experiences to the cooperation and construction of these bridges.

Accordingly, Chairman of Hai Phong People's Committee has highly appreciated the effective cooperation between Vietnam - IHI in the past time and also provide information about the bridge construction projects of Hai Phong in the coming time, like Nguyen Trai bridge, Vu Yen bridge...

In addition, he also expressed his wish that in the near future, IHI will explore and promote the cooperation in building bridges of Hai Phong. At the same time, in coordination with the Japan International Cooperation Agency (JICA), speed up the implementation of transportation projects, focusing on the Nguyen Trai bridge project.

Hai Phong always take care and create conditions for qualified contractors with high quality products. With the potential, efficiency and experiences of the IHI Corporation that has been confirmed, Hai Phong city will create the best conditions for the IHI Corporation to participate in the transportation development projects of Hai Phong in the coming time.

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

Source: https://www.antconsult.vn/news/ihi-corporation-japan-wants-to-participate-in-transportation-projects-in-hai-phong.html

Hemaraj (Thailand) Builds Billion-Dollar Industrial Park in Nghe An

  Nghe An - a province located in the central region of Vietnam always has a lot of attractive incentives for foreign investors who come and set up business in Vietnam. In which, Nghe An has a number of solutions to support infrastructure enterprises to quickly implement large-scale industrial parks, including the Hemaraj industrial park – which is preparing to start construction.

According to the plan, at the end of October 2017, Hemaraj industrial park project in the South East Economic Zone will be started construction by Hemaraj Group (Thailand). construction work. The project has a total area of about 3,200 hectares, total registered investment of about 1 billion USD, divided into 7 phases, in which phase I has an area of nearly 500 hectares.

According to leaders of Nghe An province, the provincial leaders are providing maximum support to Hemaraj so that the project can started construction as soon as possible.

Prior to that, in September 2015, a joint venture between Sembcorp Group (Singapore) and Becamex IDC have kicked off the VSIP Nghe An project with an area of 750 hectares. Currently, the project has leveled and built synchronous infrastructure for about 100 hectares of industrial land phase 1A.

More than 90 companies from many countries and territories have come to seek information and investment opportunities at VSIP Nghe An and 10 companies have signed investment commitments with total investment capital of over 400 billion VND. By the beginning of September 2017, some companies was handed over land and started to build the plant.

In order to attract investment, leaders of Nghe An province will be more drastic in reforming administrative procedures. Accordingly, if foreign enterprises want to complete the investment license application, they should only go through the one-stop department of the Investment Promotion Center of Nghe An province.

We, ANT Consulting company, support you with the service of setting up a company in Vietnam, Risk management in Vietnam, Employee background check in Vietnam... to help you shorten the implementation time.

Source: https://www.antconsult.vn/news/hemaraj-thailand-builds-billion-dollar-industrial-park-in-nghe-an.html

Vietnam Increases Ranking in The List of Global Competition

  The Global Competitiveness Report 2017 - 2018 was announced on September 26^th 2017, confirming that countries are improving in terms of health, education and technology.

The latest global competition list of the World Economic Forum shows a messy picture of Asia, while Vietnam and Indonesia jumped in rank, Japan and India slumped.

Vietnam jumped to 55^th place, up 5 steps compared with last year and 20 steps compared with 5 years ago. Accordingly, Vietnam has made remarkable progress in terms of technology and labor market efficiency. Trade is also a key factor that help Vietnam increasing ranking. Specifically, Vietnam is ranking 7^th in terms of import ratio against GDP and 11th in export ratio against GDP.

The withdrawal of the US from the TPP may have removed some future trade opportunities of Vietnam, but the report states that "Vietnam’s growth is expected to be sustained, thanks to strong exports activities".

Meanwhile, Indonesia ranked 36^th, up from the 41^st position of last year. Other Asian countries that also increased in rank are: Malaysia (23^rd); China (27^th) and Thailand (32^nd). The Philippines also rose one step to 56^th.

Japan led the opposite direction: Ranked 9^th after decrease ranking in two consecutive years. The world's third-largest economy continues to grow well in areas such as infrastructure, health and education, but is struggling with macroeconomic environment due to massive public debt.

Although leaping two years ago, India dropped one step down to the 40^th position. Singapore again dropped to 3^rd position, behind the United States.

We, ANT Consulting company, support you with the service of setting up a company in Vietnam, Risk management in Vietnam, Employee background check in Vietnam... to help you shorten the implementation time.

Source: https://www.antconsult.vn/news/vietnam-increases-ranking-in-the-list-of-global-competition.html