Company Establishment in Vietnam stands as a pivotal strategic maneuver for businesses strategically positioned to leverage opportunities. As Southeast Asia’s fast-growing economy, Vietnam presents ample opportunities for companies aiming to expand their operations. Understanding the local regulations, market dynamics, and legal procedures is pivotal when navigating the process of establishing a company in Vietnam. This multifaceted understanding is key to ensuring a successful and sustainable entry into this dynamic and promising market.

Understanding the Business Landscape in Vietnam

Vietnam’s business landscape is evolving rapidly, presenting diverse opportunities across various sectors. The government’s initiatives to attract foreign investment, coupled with favorable economic policies, make Vietnam an appealing destination for international businesses. Understanding local regulations and market dynamics is key for successful company establishment.

Key Steps for Company Establishment in Vietnam

Establishing a company in Vietnam involves several key steps, including market research, choosing a suitable business structure, registering the business, obtaining necessary permits and licenses, and complying with tax and labor regulations. Each step demands careful consideration and adherence to legal requirements.

Choosing the Right Business Structure

Selecting the appropriate business structure, such as a limited liability company (LLC), joint-stock company, or representative office, is crucial. Factors like ownership, liability, and tax implications should be carefully evaluated before making a decision.

Navigating Legal and Regulatory Requirements

Navigating through Vietnam’s legal and regulatory landscape requires attention to detail. Registering the company, obtaining business licenses, and ensuring compliance with tax laws and labor regulations are essential components of successful company establishment.

Professional Assistance for Company Establishment in Vietnam

Given the complexities involved, seeking professional assistance from local legal advisors or consulting firms experienced in Vietnam’s business environment can streamline the company establishment process. These experts provide invaluable guidance on legal matters, documentation, and procedural formalities.

Conclusion

In conclusion, establishing a company in Vietnam offers immense potential for growth and expansion. Navigating through the process requires a deep understanding of local regulations, market dynamics, and legal procedures. With strategic planning and the right professional guidance, businesses can establish a strong presence and capitalize on the vast opportunities offered by Vietnam’s dynamic market.

Market research agency in Vietnam is integral for businesses navigating the dynamic local landscape, providing essential insights crucial for success in this growing economy. This agency recognizes the importance of market intelligence and offers a range of customized services to address diverse business requirements.

The Importance of Market Research Agency in Vietnam

Market research agencies serve as strategic partners for businesses seeking to understand consumer behavior, market trends, and competitive landscapes. They employ a myriad of methodologies, from surveys and interviews to data analytics, to extract valuable insights crucial for informed decision-making.

Services Offered by an Agency

These agencies offer an array of services, including market analysis, competitor assessments, consumer behavior studies, and product/service evaluation. Moreover, they utilize cutting-edge technologies and methodologies to gather, analyze, and interpret data. As a result, they provide actionable recommendations for businesses to capitalize on emerging opportunities.

Why Choose a Market Research Agency in Vietnam

Vietnam’s market dynamics are unique, and local market research agencies possess a deep understanding of the cultural, economic, and social nuances that impact consumer behavior. Partnering with these agencies ensures a localized approach to research, enabling businesses to tailor strategies that resonate with Vietnamese consumers.

Selecting the Right Market Research Agency

When selecting a market research agency in Vietnam, businesses should consider several factors. Collaborating with an agency that aligns with the business’s objectives and values ensures the research outcomes are insightful and actionable.

Conclusion

In conclusion, market research agencies in Vietnam play a crucial role in empowering businesses with the necessary insights to navigate the evolving market landscape. Their expertise in gathering and analyzing data provides businesses with a competitive edge, enabling them to make informed decisions and capitalize on market opportunities.

HR outsourcing in Vietnam gains popularity for streamlining operations and emphasizing strengths within companies. Expanding businesses find outsourcing HR tasks efficient in the region, leading to cost savings. Specialized service providers handle HR responsibilities, offering cost efficiency and legal expertise in Vietnam. This allows firms to focus on core goals while maintaining proficient management of HR tasks. Enhanced operational efficiency and adaptability result in a more competitive business structure in Vietnam.

Types of HR Outsourcing in Vietnam

There are various types of HR outsourcing prevalent in Vietnam. These outsourcing options range from comprehensive HR management to specific tasks, allowing companies to choose services that align with their requirements and objectives. The primary types of HR outsourcing in Vietnam include Recruitment Process Outsourcing (RPO), Payroll Outsourcing, Compliance and Legal Assistance, and Training and Development.

• Recruitment Process Outsourcing (RPO)This type involves delegating the entire or parts of the recruitment process to external HR firms. RPO assists in sourcing candidates, conducting interviews, and managing the hiring process, providing companies with a pool of qualified candidates and streamlining the recruitment process.
• Payroll Outsourcing: Companies often opt to outsource payroll processing to ensure accurate and timely salary disbursement while complying with Vietnam’s complex payroll regulations. Payroll outsourcing companies handle salary calculations, tax deductions, and other financial aspects related to employee compensation.
• Compliance and Legal Assistance: Given Vietnam’s intricate regulatory landscape, outsourcing compliance and legal tasks can ensure companies adhere to labor laws, regulations, and reporting requirements. External firms assist in navigating legal complexities and maintaining adherence to standards.
• Training and Development: Outsourcing training and development initiatives helps companies enhance the skills and knowledge of their workforce. These services may include designing training programs, workshops, and skill development activities tailored to the company’s specific needs and objectives.

Process of Human Resource Outsourcing

HR outsourcing in Vietnam follows stages ensuring smooth transfer to external providers. Firms identify needs, choose partners, and transition tasks. The key stages include Evaluation and Needs Assessment, Partner Selection, Transition Planning, and Ongoing Management.

• Evaluation and Needs Assessment: This initial stage involves a comprehensive evaluation of the company’s current HR needs and processes. It includes identifying which HR functions or tasks would benefit from outsourcing, considering cost-efficiency, compliance, and overall strategic alignment.
• Partner Selection: Choosing the right outsourcing partner is crucial. Companies evaluate potential service providers based on their expertise, track record, cost-effectiveness, and cultural fit. This step involves thorough research, background checks, and possibly negotiations before finalizing the partnership.
• Transition Planning: Once a partner is selected, a detailed transition plan is established. This includes the transfer of responsibilities, setting up communication channels, defining key performance indicators (KPIs), and outlining timelines for a smooth handover of tasks and responsibilities.
• Ongoing Management: Post-transition, ongoing management and communication with the outsourcing partner is essential for successful HR outsourcing. Regular assessments, performance reviews, and adapting to any changes or improvements are part of this stage to ensure the partnership remains effective and aligned with the company’s goals.

The process of HR outsourcing in Vietnam demands careful consideration at every stage to ensure a successful transition, effective partnership, and continued efficient management of HR functions.

Recruitment process in Vietnam is a crucial aspect of building a successful workforce for businesses operating in the country. The recruitment process involves multiple steps, from identifying job openings to onboarding new employees. Understanding the local recruitment landscape is vital for companies looking to expand or establish their presence in Vietnam.

What Are the Recruitment Process in Vietnam?

Recruitment in Vietnam typically begins with the identification of job vacancies within a company. Employers often advertise these positions on job portals, in local newspapers, or through recruitment agencies. After posting the job openings, the next step entails receiving and reviewing applications from potential candidates. We then invite shortlisted applicants for interviews, during which we assess their qualifications, skills, and cultural fit with the organization. After successful interviews, employers conduct reference checks and background screenings to ensure candidates’ credibility. The final step is making a job offer and negotiating employment terms, followed by the onboarding process.

Hiring Process in Vietnam

The hiring process in Vietnam is a well-structured and rigorous one, with a strong emphasis on personal connections and referrals. Networking and relationships play a significant role in recruitment. Job seekers often rely on personal connections to gain insights into potential job opportunities. Additionally, many companies place a high value on candidates with international experience and language proficiency, as these qualities are often seen as a reflection of a candidate’s ability to adapt to a global work environment.

Requirements of Recruitment Process in Vietnam

To succeed in the recruitment process in Vietnam, companies must be well-versed in the country’s labor laws and regulations, which have been evolving to accommodate the growing labor market. Employers should also have a thorough understanding of local cultural nuances and the importance of personal relationships in the hiring process. Effective communication and strong networking are essential for both employers and job seekers to navigate the intricate recruitment landscape successfully. Adapting to these requirements is critical for businesses looking to build a talented and diverse workforce in Vietnam.

How can Double M Help?

Recruitment Process in Vietnam is often intricate, and Double M offers valuable assistance to meet clients’ recruitment needs in the country. With a tailored approach, Double M streamlines and optimizes the recruitment process, ensuring that our clients can efficiently source and select candidates that align with their specific requirements, making the hiring process in Vietnam more seamless and effective.

Local Partner Search in Vietnam facilitates the connection and collaboration between businesses, entrepreneurs, investors, buyers, sellers, and other stakeholders. The objective is to help participants identify potential business partners, clients, suppliers, or investment opportunities that align with their needs and interests in the country of Vietnam. As a country with high economic potential, Vietnam is certainly an excellent spot to find potential business partners. 

Why Do Local Partner Search in Vietnam?

Local Partner Search is a valuable tool in fostering business growth, expanding networks, and enhancing collaboration opportunities. Various industries, including technology, finance, manufacturing, healthcare, and more, commonly use it to facilitate meaningful and mutually beneficial business interactions. These days, Vietnam has massive developments in construction, manufacturing, and real estate. It is likelier than ever that you will find partners that suit your needs in the country. 

How to do Local Partner Search?

The process typically involves analyzing the profiles, preferences, and requirements of participating individuals or companies to identify suitable matches. This can be done through an organized event, a dedicated platform, or a service provided by a third-party organization. The matches are often based on criteria such as industry sector, business type, geographic location, size, capabilities, and specific business objectives.

Key Components of Local Partner Selection

There are several key components of Local Partner Search and Selection in Vietnam, such as:

1. Profiling and Registration

Participants provide information about their business, interests, and preferences during the registration process. This data is used to create profiles that help in identifying potential matches.

2. Matchmaking Algorithms

Sophisticated algorithms or manual processes are used to analyze the participant profiles and determine potential matches based on specified criteria.

3. Matchmaking Events

Physical or virtual events are organized where participants can meet and interact with potential matches, fostering networking and business connections.

4. Communication and Networking

Participants are provided with opportunities to communicate, network, and discuss potential business collaborations, partnerships, investments, or transactions.

5. Follow-Up and Relationship Building

After the initial matchmaking event, organizers may arrange follow-up activities to nurture the connections made and further develop potential business relationships.

How can Double M help?

Local Partner Search and Selection in Vietnam is a process that can help you establish connections in the country. Double M can build you a database of these networks and help you arrange meetings with them.

Lead generation service in Vietnam is a marketing strategy or a specialized service provided by a company or agency that focuses on identifying and attracting potential customers or “leads” for a business established in the country of Vietnam. As an emerging country in the economic sphere, Vietnam begins its shift into the digital marketing scene. Consequently, lead generation service becomes more important. 

Why Do You Need A Lead Generation Service in Vietnam?

Lead generation is vital for initiating and nurturing customer relationships, driving sales, understanding the market, and securing the long-term success and growth of a business. Additionally, it’s an essential strategy for maintaining a competitive edge and adapting to the ever-evolving business landscape. Furthermore, as you start your business in Vietnam, you will encounter more competitors. Therefore, lead generation is crucial for you to grab a strong hold of the market and put your business in a solid position.

How Does a Lead Generation Service Work in Vietnam?

Generating leads in Vietnam involves understanding the local market, leveraging digital and traditional marketing strategies, and establishing a strong online presence. Additionally, by understanding the local market, optimizing your online presence, and utilizing targeted marketing strategies, you can effectively generate leads and grow your business in Vietnam. Moreover, appointing the right personnel will be key, as they are the ones who will spearhead your effort of generating leads. Furthermore, taking advantage of tools and applications could also come in handy.

Strategies of Lead Generation Service in Vietnam

In order to to gain the maximum amount of leads, here are some trailblazing strategies you can do:

1. Market Research and Segmentation

Conduct thorough market research to understand the target audience, their preferences, behaviors, and demographics. Segment the market based on various parameters like age, location, interests, and purchasing power.

2. Localize Your Marketing Strategy

Tailor your marketing messages and campaigns to resonate with the Vietnamese audience. Consider language, cultural nuances, and local preferences in design, content, and communication channels.

3. Email Marketing

Build an email list of potential customers through various channels. Use email marketing to share updates, promotions, and valuable content, encouraging leads to take action and engage with your business.

4. Partnerships and Collaborations

Collaborate with local businesses, influencers, or organizations to expand your reach. Joint ventures and partnerships can help tap into established networks and gain credibility.

5. Attend Local Events and Trade Shows:

Participate in industry-specific events and trade shows in Vietnam to showcase your products or services and engage with potential customers face-to-face. 

How can Double M help?

Lead Generation Service in Vietnam could certainly help you gain a source of revenue in the country. Double M has a strong expertise in generating and managing leads in various business sectors.  

Start Business in Vietnam – Vietnam has strong fundamentals of a young, dynamic, and tech-savvy population, a growing domestic market, a rising middle class, and an open economy to offer exciting investment opportunities. Many start-ups and multinational corporations have set up their operations in Vietnam to leverage its strategic connectivity and proximity to Asian economies as a gateway to grow their businesses.

Reasons to Choose Vietnam

1. Tax incentives

Starting a business in Vietnam will offer you great benefits. You can receive some tax advantages for doing business in Vietnam. New investment projects can enjoy tax incentives depending on the sector, location, and scale. 

• Annual net profits suffer a flat corporate income tax rate of 20%. A new tax incentives policy for a company that promoted a 30% reduction in corporate income tax payable in case an enterprise has a turnover of not more than VND 200 billion and the revenue in 2021 decreases compared to the revenue in 2019 tax period.
• The maximum VAT rate is 10%
• Vietnamese withholding tax on overseas payments from 5% to 15%. 
• Certain sectors being promoted by the Vietnamese government enjoy 10% corporation tax including high technology and software production, environmental and renewable energy, infrastructure development and scientific research, agriculture, health care, and education. Meanwhile, there are four years of zero tax for health and education investments.

2. HR Needs

Based on data from the World Bank, Vietnam’s Capital Index (HCI) reached 0.67, ranked 48th out of 157 countries. Vietnam has a young population and a potential workforce. Remarkably, the country’s average wage cost is more competitive than the neighboring countries like China, Malaysia, Indonesia, Singapore.

Vietnam sets a different minimum wage level across its four regions, raking from VND 3,070,000 (US$132) in non-urban area to VND 4,200,000 (US$181) in urban area. Moreover, employees that have had vocational training must be paid at least seven percent higher than the applicable minimum wage rate.

On the other hand, Vietnam is included in the category of countries that have the least number of holidays, this certainly benefits from business priorities. This form of openness makes Vietnam the right choice for investment.

3. Open to Foreign Investors

This country is one of the most open in the form of foreign investors. Vietnam has officially joined 15 FTAs, including six ASEAN FTAs with regional partners (China, South Korea, Japan, India, Australia, and New Zealand) and the Regional Comprehensive Economic Partnership:

• AFTA (ASEAN Free Trade Area)
• PRC (South Korea, Australia, New Zealand, India, Chile and Japan)
• CPTPP (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru and Singapore)
• EVFTA (Europe-Vietnam).

The EVFTA Report 2018 by the European Chamber of Commerce (EuroCham) in Vietnam revealed that 72 percent of EuroCham members believed that the EVFTA will make Vietnam more competitive and turn it into a hub for European businesses.

4. Infrastructure Development

With its emergence as a low-cost manufacturing hub, Vietnam is continuously investing in infrastructure. The majority of Vietnam’s planned infrastructure spending is earmarked for improving the country’s transportation network and boosting its electricity generation and distribution capacity.

Vietnam ranked at 25th and 27th in Dealing with Construction Permits and Getting Electricity topics of World Bank’s Doing Business indicators.

5. Macro Business Stability

Since 2010, Vietnam’s GDP growth maintained around 6-7 percent, this trend made Vietnam become more and more attractive in the world’s eyes of foreign capital. It is true that the pandemic outbreak in the 3rd quarter of 2021 has abruptly disrupted the distribution chains and heavy restrictions have led us to some uncertainties. However, Vietnam is ready to bounce back in 2022 with the amendment of a variety of important laws that help improve its business climate.

All these factors have proven Vietnam as an attractive destination for businesses in 2022.

How can Double M help?

To offer investors insights into key aspects of the undertaking and doing business in Vietnam and help you make an informed decision entering Vietnam, Double M is providing different market entry solution services in Vietnam and other South-East Asia countries. In case you have any inquiries, please contact us at info@double-m.co

Investing in Vietnam makes sense for several compelling reasons, despite its position as the 6th largest economy in Southeast Asia. Many tend to overlook Vietnam as a prime destination for investment and business ventures, often overshadowed by neighboring countries such as Indonesia, Malaysia, the Philippines, Thailand, and Singapore. However, Vietnam has the potential to be your next investment destination. Multiple reasons support the notion that choosing to invest in Vietnam is a wise and prudent decision.

1. Vietnam’s outstanding economic performance.

In the beginning of 2021, while many economies were still struggling with the pandemic, managed to record an outstanding performance. Vietnam General Statistics Office (GSO) reported that the Gross Domestic Product grew 4,48% in the first Quarter of 2021.

In addition, as of 20^th of April 2021, Vietnam was able to attract US$12,25 billion worth of Foreign Direct Investment. There are 451 new registered projects with a total capital of $8,5 billion. According to the latest World Bank report, Vietnam GDP is projected to reach 6,6% in 2021 and 6,5% in 2022, outperforming the projected negative global economic growth.

2. Vietnam’s successful control of the pandemic.

As of 6^th of June 2021, there has been a total of 8.791 COVID cases with 5.423 still active cases. This number is lower compared to its neighboring countries, specially Indonesia or Philippines. Thanks to a quick and swift respond by the Government, with the imposition of strict social restrictions, massive tests, and the commitment to data transparency.

3. Vietnam has been called a major beneficiary of the US-China trade war.

According to the report from a Japanese Investment Bank Nomura, Vietnam gained 7,9% of GDP in 2019 as the result of trade diversion.

4. Vietnam has been seen as an alternative for companies that want to shift production out of China.

In the past, Vietnam attracted manufacturers in textiles, garments and other low-end industries that have fled China due to rising labor costs. Nowadays, international tech companies such as Samsung, Olympus and Microsoft (Nokia) have relocated their factory to Vietnam. The geographical proximity to China helped companies to relocate their manufacturing plants. In addition, young population and low labor costs also add to its appeal.

5. Free trade access to the largest economic bloc in the world is another Vietnam major selling point.

Vietnam has bilateral agreements with ASEAN members, Australia, Chile, China, India, Japan, New Zealand, and South Korea. Vietnam also has free trade agreement with the EU, which came into force in summer 2020.

6. Vietnam is rapidly developing its infrastructure.

Vietnam boosted its investment in infrastructure. The improved electric system, national highways, and air and sea ports have boosted the country’s place on World Bank Logistic Index from 64 in 2016 to 39 in 2018.

Majority of Vietnam’s infrastructure spending are coming from public resources. In March 2021, the Vietnamese Government announced the allocation of $120 billion for public investment from 2021 to 2025. This budget will be prioritized to be channeled to major infrastructure projects.

7. Vietnam is showing a welcoming attitude towards foreign investors.

Given the rapid pace of development, relying solely on the public sector for infrastructure investment is not feasible. Both local and foreign investors must contribute to fulfill the infrastructure plans and sustain the high growth rate.

Realizing their own limitation, the Vietnamese government has constantly shown a welcoming attitude towards foreign investors. Both foreign and local investors receive Corporate Income Tax (CIT) incentives as part of the effort to encourage investment in sectors or areas aligned with the Government’s development plan.

How can DOUBLE M help you?

DOUBLE M provides market entry solution services in South East Asia. Should you have any inquiry, please contact us at info@double-m.co

The European Union Vietnam Free Trade Agreement (EVFTA) took effect on August 1 paving the way for increased trade between the EU and Vietnam.

The EVFTA is an ambitious pact providing almost 99 percent of the elimination of custom duties between the EU and Vietnam. As per the Ministry of Planning and Investment (MPI), the FTA is expected to help increase Vietnam’s GDP by 4.6 percent and its exports to the EU by 42.7 percent by 2025. While the European Commission has forecast the EU’s GDP to increase by US$29.5 billion by 2035.

65% of the duties on EU exports to Vietnam has been eliminated upon entry into force of the Agreement, the remainder will be phased out over a period of ten years. EU duties on imports from Vietnam will be phased out over a period of seven years.

• Practically all the machines and appliances are free of tariffs from the moment the Agreement enters into force, and the rest will be after five years. The current fees are up to 35%.
• Auto parts will be duty free after seven years (current duty is up to 32%).
• Approximately half of EU pharmaceutical exports are duty free as entry into force of the Agreement, and the remainder will be duty free after seven years (current duties are up to 8%).
• Duties applied to all exports of textile products has been eliminated as entry into force of the Agreement.
• About 70% of EU chemical exports are duty free at the time the Agreement entered into force and the rest will be after three, five or seven years, as appropriate (current fees are up to 25%).
• Wines and spirits will be fully duty free after seven years (currently the duties are 50% and 48%, respectively)
• Frozen pork will be duty free after seven years, bovine meat will be duty free after three years, dairy products will be duty free after a maximum of five years and food preparations will be duty free after one year. maximum of seven years.

REDUCE NON-TARIFF BARRIERS TO EUROPEAN EXPORTS

The EU and Vietnam have agreed to strengthen the disciplines of the WTO Agreement on Technical Barriers to Trade (TBT).

The agreement also contains a chapter that addresses Sanitary and Phytosanitary Measures (SPS), specifically aimed at facilitating trade in plant and animal products, where the parties agreed on some important principles such as regionalization and the recognition of the EU as a single entity.

These provisions will facilitate access to the Vietnamese market for EU companies that produce a wide variety of products, including household appliances, information technology, and food and drink.

PROTECTION THROUGH TARIFF QUOTAS

Only some sensitive agricultural products will not be fully liberalized, the EU has limited Vietnamese exports through tariff quotas (TRQs): Rice, Sweet corn, Garlic, Mushrooms, Sugar and products with high sugar content, Cassava starch, Surimi, Tuna canned.

A distinct aspect of EVFTA is its strong focus on sustainable trade and a shared vision of labor, corporate social responsibility, and environmental conservation. These values have far-reaching potential to improve the competitiveness of European businesses and their brands.