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

German Investors Funded 15 Million USD for Kinh Bac to Implement Workshop Project

  The total investment value of the project is 33.4 million USD, equivalent to about 755 billion VND, which is invested in construction and development in industrial zones.

According to information from Kinh Bac City Development Holding Corporation (KBC), the subsidiary of this unit is Kinh Bac Office and Workshop Trading One-Member Limited Company has just reached an agreement: signed contract to finance a project to build a workshop with the German Investment Corporation (DEG) under the German Development Bank (KfW). KfW is now managing more than 600 billion euros.

Accordingly, Kinh Bac Office and Workshop Trading One-Member Limited Company will receive a long-term loan from the DEG worth 15 million USD (total value of the project is 33.4 million USD) with a loan term of up to 8 years to supplement the capital for construction and development of workshops in industrial zones.

According to DEG’s representative, Mr Hubertus Pleister - Director of DEG Asia, Vietnam's economy has grown steadily, continuously and sustainably over the long term, this is an important market, with many investment inflows. In addition, KBC is known as a prestigious business in the field of real estate and calls for foreign investment in industrial parks.

According to KBC, in addition to sponsored the above funds, DEG also committed to support KBC to access to other long-term development funds from financial institutions under the European Development Finance Institutions (EDFI) where DEG is a key member. KBC has undergone a rigorous 2-year appraisal process that ensures DEG's criteria for financial capacity, management and environmental factors.

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/german-investors-funded-15-million-usd-for-kinh-bac-to-implement-workshop-project.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

Mavin Pledged to Invest 80 Million USD in Nghe An

  Mavin Group (Australia) has operated in Vietnam for a long time and now they do not hide their ambition to expand investment and set up business in Vietnam.

In February 2017, Mavin Group inaugurated an animal feed production factory in Nghe An. This plant has a total investment of 15 million USD, which is built on an area of 3.6 ha and has a capacity of 300,000 tons per year.

Mavin Group has invested in Vietnam for more than 12 years and now has production facilities in 7 provinces and branches, warehouses in 19 different provinces in the country. However, up to date, Nghe An is the only province that Mavin plans to invest in 4 separate projects with a total investment of 80 million USD.

In addition to the inaugural animal feed factory, Mavin Group plans to deploy 3 more projects in Nghe An.

In April 2017, Mavin Group was granted a license to invest in a 18 million USD hi-tech pig farm, built on an area of ​​100 hectares. Subsequently, the Mavin Group plans to invest in a Veterinary Research Center. At the same time, conducting a feasibility study to invest in a food processing plant that may be launched by 2018. The project has a total investment of 25 million USD, built on an area of ​​5 hectares, capacity of 200,000 tons/year. This factory will produce products made from meat, sausage, ham and other traditional meats... serving the domestic market and exporting to Laos and Cambodia.

According to the Chairman of the group, Mavin Group before making investment decision always consider 6 issues that are: human resources; market; geographic factors; political issues (attention, government support, security...); incentive policy and transparency.

In addition, representatives of the Mavin Group expressed their satisfaction when investing in Nghe An. Moreover, they also suggested that investors should choose to invest in Nghe An not only because of favorable geographic location, synchronous facilities, great source of human resources but also highly supported from province leaders with great investment incentives.

According to the representative of Vietnam – Singapore Industrial Park (VSIP) in the Central and South regions, recently many local and foreign investors have come to Nghe An seeking investment opportunities.

Previously, in September 2015, VSIP Nghe An was officially started construction with a total area of 750 hectares. After more than a year of land handover, up to now, VSIP Nghe An has now leveled and built complete infrastructure for about 100 hectares of industrial land area in phase 1A. The wastewater treatment system, clean water supply, power supply, fire prevention and protection have been completed and ready to serve investors in production.

More than 90 companies from many countries and territories have come to find out 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 have received land handover and started plant construction. In which, the first factory was officially put into operation. It is expected that by the fourth quarter of 2017, two more companies will come into operation, attracting about 1,000 workers.

It is known that VSIP Nghe An is the 7^th project that VSIP deployed in Vietnam. Previously, in addition to 2 VSIP projects in Binh Duong, there are projects in Bac Ninh, Hai Phong, Quang Ngai and Hai Duong. Currently, VSIP's projects attract a total of 720 investors from 30 countries and territories with total domestic and foreign investment of 9.2 billion USD, creating jobs for about 180,000 workers.

Source: https://www.antconsult.vn/news/industry/mavin-pledged-to-invest-80-million-usd-in-nghe-an.html

Korea Leads FDI in Vietnam

  The flow of FDI capital into Vietnam has continued to grow strongly over the years, demonstrating the confidence of foreign investors when deciding to set up business in Vietnam.

According to data from the Foreign Investment Agency (Ministry of Planning and Investment), the total amount of FDI capital such as new registered, capital increase, capital contribution and share purchase in the first 7 months of 2017 is 21.93 billion USD, increases by 52% over the same period in 2016.

Of these, the new registered capital was 12.92 billion USD, increases by 48.7% over the same period; the added capital was 5.87 billion USD, increases by 38.5% over the same period. The amount of capital that investors spend to contribute capital and buy shares in enterprises in Vietnam is 3.12 billion USD, increases by 109.7% over the same period in 2016.

According to the trend, more and more foreign investors have recently invested in Vietnam through capital contribution and share purchase. An increase of over 109% indicates that. Furthermore, data from the Foreign Investment Agency showed that by July 20^th 2017, the FDI projects have disbursed 9.05 billion USD, increase by 5.8% over the same period in 2016. The rate of increasing in FDI capital disbursement is gradually improving compared to the first months of the year.

In the first 7 months of 2017, foreign investors have invested in 18 industries and sectors, of which the manufacturing and processing sectors have attracted the attention of foreign investors, with total capital of 10.83 billion USD, accounting for 49.4% of the total registered capital. The electronic production and distribution sectors ranked 2^nd with total investment of 5.25 billion USD, accounting for 23.98% of total investment capital. Standing at the 3^rd position is mining sector with total registered capital of 1.28 billion USD, accounting for 5.86% of the total registered capital.

Meanwhile, in terms of partner, Korea ranked 1^st with a total investment of 5.62 billion USD, accounting for 25.63% of total investment capital. Japan ranked 2^nd with total registered capital of 5.46 billion USD, accounting for 24.92% of total investment capital in Vietnam.

In terms of localities, Thanh Hoa is the most attractive province with the total registered capital of 3.06 billion USD, accounting for 13.9% of total investment capital. Bac Ninh ranked 2^nd with total registered capital of 2.95 billion USD, accounting for 13.48% of total investment capital. Nam Dinh ranked 3^rd with a total registered capital of 2.2 billion USD, accounting for 10% of total investment capital.

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/industry/korea-leads-fdi-in-vietnam.html

Guangdong, Hong Kong Businesses Seeking Opportunities in Vietnam

  60 enterprises coming from Guangdong, Hong Kong (China) are visiting Hanoi, exploring opportunities to set up business in Vietnam.

The conference between Vietnam and Guangdong, Hong Kong enterprises is organized in Hanoi. In addition to 60 businesses wishing to explore investment opportunities with Vietnam enterprises, the conference also attracted delegates including Government and business leaders from 12 provinces and cities of Vietnam, Guangdong and Hong Kong, along with enterprises, leaders of many provinces and cities of Vietnam, especially the provinces bordered with China such as Lang Son, Lao Cai...

The enterprises from Guangdong and Hong Kong operating in the field of manufacturing and trading in the fields of electrical equipment, electrical appliances, consumer goods... Meanwhile, Vietnamese enterprises doing business in such sectors as transportation, general import and export, agricultural products, industrial zone infrastructure...

With the two-way trade turnover between Vietnam and Guangdong reached 17 billion USD in 2016, increased by 2.9% compared with 2015, Guangdong is the province playing significant role in promoting the growth of two-way trade between Vietnam and China. In addition, Guangdong's total production value in 2016 reached 1.160 billion USD, Guangdong continues to be one of China's leading localities for economic and trade cooperation with Vietnam.

Meanwhile, the Vietnam consumer market has increasing scale and purchasing power, creating conditions for Guangdong enterprises to bring goods to Vietnam for consumption. In the opposite direction, with a population structure of more than 100 million people, this is also a potential market for a wide range of commodities, especially Vietnam agricultural products. It is expected that the value of Vietnam's agricultural products exporting to Guangdong will soon reach billions of dollars.

Source: https://www.antconsult.vn/news/guangdong-hong-kong-businesses-seeking-opportunities-in-vietnam.html