Setting up a business in Vietnam can present hurdles when finding essential services needed and determining fair pricing. It’s advantageous to understand that certain expenses are eligible for tax deductions, potentially offering savings in the long run.
Market research costs:
Paying for this step is of course not required, and often depends on the size of your business / business model whether you outsource this task or conduct market research by yourself / inhouse. Market research by a Vietnam specialist typically ranges from $500 to $2,000. It is a little bit tricky to find good data in Vietnam as a lot of data is not centralized.
General law firm / service provider costs of setting up a business:
Before starting a business in Vietnam, consult legal experts to navigate differences in legal systems. Assess the legal aspects, and for a reasonable investment of $100 – $150, obtain a professional legal report. Once you’ve secured initial advice, engage law firms or startup providers for business setup, which falls under “legal” or “administrative” costs.
Budget approximately:
- $1,250 – $2,000 for foreign-owned business formation
- $350 – $1,000 for Vietnamese-owned companies.
These expenses cover key licenses (IRC & ERC), company registration steps, but exclude visa and sub-license costs, which vary by business type. It usually takes around 1.5 – 2.5 months to set up this step for a foreign owned business.
Get a free business start-up report via this link, offered free of charge from Bizspective™ in Vietnam.
Additional sub-license expenses:
Your lawyer will apply for your sublicense but at an extra cost. Vietnam’s sub-license fees vary ($60 to $500), depending on your business. Different industries require specific sub-licenses, like food safety or fire prevention certificates. Costs hinge on type, approval level, and provider. Obtaining sub-licenses is usually completed within a week.
Charter capital/ investment capital required.
Your required charter capital in Vietnam varies based on your company’s size and location:
- Hanoi and Ho Chi Minh City: $10,000 – $15,000
- Da Nang and Hoi An: $35,000 – $45,000
When launching a business in Vietnam or any country, you must allocate a specific amount as charter capital, also known as “investment capital.” In Vietnam, authorities attach importance to your proposed charter capital when evaluating foreign-owned business registrations. Vietnamese-owned companies generally face less scrutiny.
Authorities do not specify a compulsory minimum amount but assess your proposal’s feasibility. Larger businesses require more capital. In the past, the minimum was as low as $5,000 for foreign-owned businesses but has increased with economic development.
The investment capital is not a fee and it can be used for business expenses.
Keep in mind that this does change over time, so contact us for more updated information regarding the investment capital requirements.
Post-certification procedures:
Once your company is registered, you will then need to finish these final steps, in most cases these steps will all be included in the total legal fee mentioned above. However, in rare cases the law firm / service provider may charge you for these steps, it should cost around $150 in total, these final steps follow your business registration:
- Corporate bank account: open a corporate bank account registered with the Vietnamese Tax Authorities.
- Company seal and name sign: register your company seal and purchase a company name sign.
- National enterprise database: ensure your company is listed in the National Enterprise Database of Vietnam.
Depending on your industry, you may also need sub-licenses as mentioned earlier. Otherwise, these post-registration procedures often mark the conclusion of your successful business registration in Vietnam.
Q&A on starting a business in vietnam:
Can a foreigner buy an existing company in Vietnam?
Yes, and this is in many cases a more practical option, as you can skip the set up procedures and in many cases reduce the high risk of setting up a new business.
Here are many business for sale listings in Vietnam: https://bizspective.com/business-for-sale/
Is Vietnam a favorable place to begin a business?
The viability depends on your industry. Historically, sectors like manufacturing, F&B, e-commerce and export have thrived. Vietnam actively encourages entrepreneurship, with government support for legal businesses. The Vietnamese market, especially in cities like Ho Chi Minh, Hanoi, Da Nang, Hoi An, and Phu Quoc, offers significant opportunities.
What’s the cost of starting a business in Vietnam as a foreigner?
The primary costs are outlined in this guide. However, the exact expenses vary based on your company’s type, location, product or service, and size.
How long does it take to set up a foreign owned business in Vietnam?
It usually takes between 6 – 10 weeks but varies depending on the complexity of the business and location of registration.