How to open a manufacturing company in VietnamTrang Vu
During Covid-19, Vietnam has become a favorable destination for foreign investment, especially to set up a manufacturing company. From our own experience, we would like to share with you some basic steps you need to consider when making this decision.
Minimum financial requirements
The government does not stipulate the limit of capital requirement for setting up a company in Vietnam. However, they do concern if your capital amount is realistic to cover all the cost estimates.
Popular types of legal entities available for foreigners in Vietnam
The most popular legal entities for foreigners in Vietnam are limited liability and joint-stock companies. While the former is usually recommended for small and medium-sized enterprises, the latter is more suitable for medium-sized and large companies. Furthermore, the first has members, while the second has shareholders. In both cases, foreigners are allowed to own the company 100%.
You have to register your investment and your business at the Department of Planning and Investment. Apart from these two certificates, you might need to apply for some other licenses or submit some reports related to your product lines or anticipated environmental impacts, namely:
Land use certificate
- Construction permit (if your plan involves the construction of new factories or buildings.)
- Fire protection and fire safety license
- Certificate of food safety
- Certificate of food safety knowledge
- Announcement of conformity of technical regulations
This whole administrative process takes at least 4 months, particularly:
Ideally, you might want to set up your manufacturing business in the industrial zones, which are available both in the North and the South of Vietnam. The main reason is that these areas are well-equipped for manufacturing purposes, particularly in terms of water and waste management systems. It is also recommendable to check where other companies in your supply chain are located before you make decisions.
Vietnam is the hub of both low labor costs and high-quality IT human resources. In particular, you can hire a professional headhunting company to help you recruit your staff. In terms of IT human resources, you can also outsource a consulting company. Almost all manufacturing solutions are available in Vietnam now, including the leading SAP and Epicor. While the former solution came to the country earlier, the latter has conspicuous cost advantages.
To sum up, there is no one size fits all, but these are some unavoidable steps, which you can carry out flexibly according to your own business plan in manufacturing. For further information, please feel free to contact us. We will respond to you within 24 hours.