Doing business in Vietnam 2019 will definitely open up many opportunities for enterprises. However, it will bring many challenges, too.
Vietnam has been gradually moving up to become a developing and integrating country from a poor and backward economy with the world. In recent years, Vietnam has much more afirmed their bravery when gradually overcome all difficulties and affirms their position and importance in the world. Therefore, Vietnamese economy is developing strongly. Especially in 2019, it will be more explosive according to experts’ remarks.
Knowledge doing business in vietnam 2019 with consumer culture of Vietnamese people
In order to have knowledge starting up a business in vietnam 2019, you need to know the behavior or consumer culture of Vietnamese people. Especially for foreigners to know culture of doing business with vietnam, this is even more important as it determines the survival of your business when deciding to invest in vietnam 2019. Customers are considered the most important of each business so understanding consumer behavior will the best guide to set up new company in vietnam help businesses get the best development.
Invest in vietnam 2019 must to know that “Consumer behavior is always in a moving condition”.
As life grows, people’s incomes are higher, they consume more with more products. This is the reason that in recent times convenience channels have grown very quickly. And certainly in the future, the convenient sales channel system will be very developed and will even surpass the supermarket. So, this is the important information for foreigners who want to set up a company in vietnam 2019.
Vietnamese people like high quality product lines.
This is considered a trend of Vietnamese consumers in recent years when the Economy of Vietnam growth. Not only high-income city residents but rural people also love the high quality product line.
People who buy the high quality products with the psychology are to create a sense of success and confidence more. Therefore, companies starting up a business in vietnam can join these products. It will definitely bring the best effect to your business.
Vietnamese people really take care of their health
As life develops, human life enhances and they do not have to race against money anymore, then health is the most important thing they care. Especially, in recent times, circumstances related to dirty goods affect consumers’ health.
They always look for and buy natural products or good quality products that do not affect human health. In addtion, Vietnamese people now prefer to buy goods in specialized shops and ready to spend money on good products that meet health requirements.
New consumer classes increase rapidly
According to some recent statistics, in the Vietnamese market, new consumer classes have increased strongly from a variety of different classes and subjects. In particular, women often spend more than men. Therefore, set up a company in vietnam 2019 will be an advantage for foreign Companies.
The advantages of starting up a business in vietnam 2019
With the strengths that Vietnam has, experts have affirmed that invest in vietnam 2019 is always a wise choice not only for domestic businesses but also for foreigners who want to invest in Vietnam.
In 2019 there were many predictions of experts about Vietnam’s development trend such as:
According to Ms. Giang Nguyen – Director of Purpose Group, surely supposes that in 2019, businesses will concentrate on online channels up to 50% of communication budget. And the fields of society, education or business all grow and contribute to creating a sustainable future for Vietnamese nationality.
Director of Un-Available Company supposes that fashion and apprael market will always develop with a breakthrough. And especially demure dress trends or bold tecniques in the garment industry will create a new fashion trend this year.
The partner of Mekong Capital is an unlisted firm specializeing in equity in Vietnam, recognizing that the financial sector will grow when the spending level of the people is huge. So, in 2019, the financial sector will develop successfully and well.
In general, Vietnam is a developing country, so any business is considered potential. Any form of doing business in Vietnam 2019 will bring the best results.
Challenges of registration a company in vietnam 2019
In the field of business, the challenge or risk of registration a company in vietnam is unavoidable. For small and medium enterprises in Vietnam, there are always 3 bottlenecks that are land, access to capital, administrative procedures and tax. In previous years, these congestion is gradually improving but there are still some special issues about land.
In 2019, the Vietnamese economy will face more challenges and difficulties, so the government also sets low growth targets. This is considered to be an advantage for businesses operating. However, with the US-China trade war situation, central banks increase interest rates so if businesses want to borrow from banks, they need to calculate carefully and reasonably or face with threats of starting a business with vietnam. So, Important things is: How to optimize costs of starting up in Vietnam for foreigners ?
2019 is also considered as a breakthrough in improving the business investment environment for reducing cost of set up new company in vietnam that the state has prescribed including 5 components such as: Business conditions; specialized management; e-commerce; online public services; innovation. So, all businesses must cooperate and develop together.
The most popular forms of doing business in vietnam 2019
There are many forms of investing in vietnam 2019 for you to choose and you can apply some of the following forms:
Investment in manufacturing factories in Vietnam specializing in OEM processing and export
This is a business model that many foreign businesses have chosen to invest in Vietnam. With the advantage of being encouraged by the State of Vietnam and offering preferential policies such as tax exemption and reduction. This is a good opportunity for businesses that want to invest in manufacturing factories in Vietnam specializing in export processing. In addition, the labor force in Vietnam is very much including skilled people and good professional qualifications. Find out the good location to build the factory also very important, the loacation have to have the advantage for export such as: near the sea port, air port , transportation system connect directly to the port, infrastructure suitable for factories. So, the agent supply the shop, office and factory rental services is very important
Use the Sourcing Agent in Vietnam to find the product to Export
The common way for the foreigner is look for Vietnam specializing product for export. There are many kind of manufactuters and supplier with variety capacity.
Find out the realiable manufacturers and suppliers is the most important. Unless you want get headache with manufacturers about the deadline, term of contract, delivery…..
There are many ways to checking the manufaturers and suppliers: at the in line processing and at the fianal. At Vietnam there are many offer about Vietnam Sourcing Service Agent to make sure satisfaction your need in sourcing.
Investment in manufacturing and selling in domestic Vietnam.
Investing in a manufacturing factory and selling right in the Vietnamese market has many advantages, and especially reduces costs for businesses. Vietnam consumer market is very large and diverse, especially Vietnamese people are tending to buy domestically produced goods. This form will bring a great potential for businesses when they want to invest in Vietnam. Set up the distribution will be the most important things. It is include the act to find out the marketing, brand activation & exhibition services agent , online sales set up agent , sales channel set up agent ( both for the Modern Trade channel and the General Trade channel ) , and also the customer care for maintenance and growth the sales volumme in the market
Importing products from abroad and distributing in Vietnam
When human life increases, the shopping behavior of people is increasingly popular with foreign goods. Therefore, the form of importing goods from abroad and set up distribution in Vietnam market is quite suitable in the current time. However, imported products are relatively high in cost, so the major customers are middle class.
Investment in service provision in Vietnam
In fact, there have been many foreign traders investing in Vietnam in the form of service provision and have been successful beyond expectation. In the future, as the information technology grows, human life improves and leads that the need to use services for human life also develops constantly
Vietnam is increasingly developed attracting many foreign enterprises to invest in Vietnam, such as: many korea invest in vietnam or many japanese companies invest in vietnam. In order to be able to set up distribution in vietnam you should note the following:
– If you set up a company in Vietnam with 100% of your own capital, you can establish a one member limited company.
– If the company founder hires a manager, you can authorize the manager to act on your behalf and represent you to manage and operate the company. Or you can let that manager act as a legal representative.
Order and procedures for establishing a company.
If you are a foreigner who wants to invest in Vietnam, the first thing you need to do is searching for places and naming the company in accordance with state laws. Then you need to prepare a set of documents and submit them to the planning and investment department of the province or city where your company headquarter located in. Choosing kind of company also very important, with the right business legislation services will help you choose the suitable kind of company help you saving cost and risk in investment in Vietnam. It is included:
- Choosing a partner to represent in Vietnam to look for and work with customers.
- Investing in purchasing companies in Vietnam
- Investing in purchasing companies in Vietnam
- Investing 100% foreign capital to establish the new company in Vietnam
Dossiers should be prepared to set up a company in vietnam
The dossiers to establish a registration a company in vietnam 2019 consists of two types:
Investment registration dossier
The dossier includes the following documents:
– Written request for issuance of an investment certificate.
– Papers proving the investment location;
– Papers on financial capacity of investors;
– Economic and technical explanation or explanation of ability to meet investment conditions;
Business registration dossier
– Charter of the enterprise;
– ID card or passport of the investor;
After submitting the dossiers, the authorized unit will make an appointment to get a business license, and usually if your business has a capital of more than 300 million, the time for collecting paper will be longer than the capital of less than 300 million.
With the above information, hope that it will bring you the most general view about starting a business with vietnam. If there is any problem needed to answer, you can contact us for advice and support with the best way.
Our contact Informaion:
VNT Joint Stock Company
Address: Tr 2.10 – Newton Residence – 38 Truong Quoc Dung, Ward 8, Phu Nhuan Distric, Ho Chi Minh, Vietnam
Contact name: Mr Tony Tran
Mobile: +84 988 039 755
Source: VNT JSC