Business in Vietnam is gaining popularity as it provides numerous advantages for companies that want to expand into a growing economy. The country has an increasing and wealthy consumer base with low-cost labour, a welcoming culture to foreign investors and entrepreneurs, and an established government.
Although it’s fairly simple to start a business in Vietnam but you should take into consideration various factors before making a decision. These factors include the laws on corporate and regulations of the country, the tax incentives that businesses can avail, and the cost structure for doing business in Vietnam.
Businesses looking to establish an operation in Vietnam should also be aware of Vietnam’s unique cultural norms. For instance, the country has an extremely strong emphasis on building relationships and connections, which may be accomplished through social events like dinners. When meeting with potential clients and partners it is important to keep this in mind to build relationships that can result in future opportunities.
There are a variety of ways to do business in Vietnam which include an entirely owned foreign enterprise (FIE), a joint venture partnership or representative office. Generally, setting up a FIE can take anywhere from 3 and 4 months, while representatives offices can be set up in less than half the time. Each kind of business has its particular advantages and disadvantages. It is important to understand the differences before deciding on which is the best choice for your business.
