Starting a Trading Business in Vietnam in 2024-25: Process & Benefits

In this article, you will learn about how to start a trading business in Vietnam in 2024-25. Read the complete article to know more about the process, benefits, and more.

GET EXPERT
ASSISTANCE

    Note: This form is not for job seekers.

    Table of Contents

    Trading Business in Vietnam

    Starting a trading business in Vietnam is an appealing option for entrepreneurs seeking to capitalize on one of Southeast Asia’s most dynamic economies. Vietnam has emerged as an international trade and investment hub due to its strategic position, increasing consumer market, and favorable trade policies. This article is intended to offer a complete overview of the necessary processes and considerations for starting a successful trading company in Vietnam. From knowing the legal framework to negotiating cultural subtleties and finding significant markets, this article will provide you with the knowledge you need to begin your entrepreneurial adventure in Vietnam’s growing trade industry.

    Process to Start a Trading Business in Vietnam

    Starting a trading business in Vietnam involves several steps, including preparing necessary documents, obtaining licenses, and complying with local regulations. Here’s a detailed guide to help you through the process:

    Step 1: Choose a Business Structure

    Determine the appropriate legal structure for your business. The most common types include:

    Step 2: Register the Business Name

    • Ensure the chosen business name is unique and not already in use.
    • The name must comply with Vietnamese naming conventions and avoid restricted words.

    Step 3: Prepare Required Documents

    The necessary documents typically include:

    • Application for Enterprise Registration
    • Company Charter/Articles of Association
    • List of Members (for LLC) or Founding Shareholders (for JSC)
    • Identification documents of founders and legal representatives
    • Proof of legal capital if applicable
    • Office lease agreement

    Step 4: Submit the Application

    Step 5: Obtain the Enterprise Registration Certificate

    • Once the DPI approves your application, they will issue an Enterprise Registration Certificate.

    Step 6: Publish Registration Contents

    • Publish your business registration contents on the National Business Registration Portal within 30 days of receiving the certificate.

    Step 7: Engrave the Company Seal

    • Get a company seal made and register the seal with the Business Registration Office.

    Step 8: Obtain a Trading License

    • Apply for a trading license, which is required for businesses engaged in trading activities. This involves submitting additional documents like a business plan and financial statements.

    Step 9: Register for Taxes

    • Obtain a tax code from the local tax office and register for Value Added Tax (VAT) and other relevant taxes.
    • Ensure proper accounting records and tax filings are maintained.

    Step 10: Open a Bank Account

    • Open a corporate bank account in Vietnam to facilitate business transactions.

    Benefits for Starting a Trading Business in Vietnam

    1. Strategic Geographical Location

    Vietnam’s central location in Southeast Asia offers excellent connectivity to major markets such as China, Japan, and other ASEAN countries. This makes it an ideal hub for trading activities, facilitating efficient import and export operations.

    2. Access to Free Trade Agreements (FTAs)

    Vietnam is a member of multiple FTAs, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP). These agreements provide preferential access to major global markets, reducing tariffs and trade barriers for Vietnamese businesses.

    3. Favorable Economic and Investment Policies

    The Vietnamese government offers attractive incentives for foreign investors, including tax holidays, reduced corporate tax rates, and exemptions from import duties on equipment. Continuous improvements in the regulatory framework and administrative procedures further enhance the ease of doing business in the country.

    4. Cost-Effective Operations

    Vietnam boasts competitive labor costs and affordable real estate prices compared to neighboring countries. This cost-effectiveness extends to various aspects of business operations, including manufacturing, logistics, and office space, making it an attractive destination for setting up a trading business.

    5. Growing Consumer Market

    With a young and dynamic population, rising middle class, and rapid urbanization, Vietnam’s domestic market is expanding. Increasing consumer demand for diverse products and services creates significant opportunities for trading businesses to thrive.

    Set up your company in Vietnam with OnDemand International

    OnDemand International is a professional consultancy firm dedicated to assisting foreign investors in navigating the legal and regulatory landscape of conducting business in Vietnam. We provide a comprehensive suite of services to help you start your trading venture, including company registration, bank account opening assistance, and compliance support.

    By partnering with OnDemand International, you gain access to our deep understanding of Vietnam’s business environment and our extensive network of local partners. Our expert guidance allows you to concentrate on expanding your business while we manage the administrative and compliance tasks. Complete the form below to schedule a consultation call with an OnDemand International’s expert.