How to start a business in Vietnam as a foreigner is a matter of concern to most foreign investors.
Unlike many offshore countries, the licensing procedure of operating a business in Vietnam may be quite challenging due to its regulatory framework, especially for new foreign startups.
Being well-equipped with a careful plan before investing in Vietnam is therefore significantly essential. Below is a practical guide to starting a business in Vietnam as a foreigner with our latest update. Let’s find out!
1. Can foreigners start a business in Vietnam?
Yes! Foreigners are allowed to start a business in Vietnam, regardless of indirect or direct investments.
The first option is to choose a direct investment. Direct foreign investment indicates a 100% foreign-owned company or a joint venture company in which the foreign investor and a Vietnamese partner work together.
If choosing the form of direct investment, the foreigner must proceed with legal procedures to obtain the investment as well as enterprise licenses as stipulated in respective laws in Vietnam.
Indirect foreign investment, on the other hand, is the investment made through the purchase of shares in Vietnamese companies, capital contribution, stocks, investments fund, or other similar financial vehicles. Indirect investment creates the foreigner’s presence in the management of a company based upon the agreement among the involved parties.
In what follows, we will delve into comparison among common forms of business investment, and key considerations when it comes to starting a business in Vietnam as a foreigner!
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