Part 1:https://bbcincorp.wordpress.com/2021/12/29/why-doing-business-in-vietnam-benefits-vs-challenges/
3. Challenges of starting a business in Vietnam
High corporate tax rates on some certain investments
Vietnam applies a standard corporate income tax rate of 20% on most corporate entities.
However, in some specific business categories, the tax rate is fairly high.
For instance, if you operate in the exploration and mining of oil, gas, and other natural resources industries, you’ll be subject to tax rates of 32% and 50%, depending on the location and circumstances of the projects.
To get an accurate idea of corporate tax rates for your investment, simply read our Guide to Corporate Tax in Vietnam for Foreigners.
Restrictions of foreign currency
You’ll need to exchange foreign currency into VND for indirect investment in Vietnam.
Overall, transactions, payments, quotations, advertisements, and other forms alike should be done in Vietnamese currency as well.
However, the inflow of foreign currency into Vietnam has been more open with minimum restrictions. Similarly, transferring overseas has also been less severe.
If you plan to reside in Vietnam for employment purposes, you can transfer your gains abroad if you complete all financial liability to Vietnam’s government.
Business setup requirements
You’ll need to deal with several requirements to set up a company in Vietnam. For example, the paid-up capital requirement.
Normally, the standard capital for your investment in Vietnam should be at least US$10,000.
Also, depending on the business types, the capital amount can be lower or higher.
The licensing procedure can be quite challenging. Especially if you’re engaging in some conditional sector activities as regulated in Appendix 4 of Law on Investment No. 67/2014/QH13.
Specifically, you’ll have to submit more additional documents like the certificate of business qualification, professional liability insurance, etc.
4. Conclusion
In general, Vietnam is now one of the most prospective markets among ASEAN countries.
The country has gained great achievements in GDP growth, regulatory system, and tax policies to attract foreign investment.
Doing business in Vietnam will open new opportunities for you in different sectors, especially after the huge impacts from the US-China trade war which has led to new waves of investment in the global era.
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