{"id":6857,"date":"2019-06-27T01:00:50","date_gmt":"2019-06-26T16:00:50","guid":{"rendered":"https:\/\/asia-prop.com\/?p=6857"},"modified":"2024-10-10T12:51:07","modified_gmt":"2024-10-10T03:51:07","slug":"business-model-for-entering-vietnam","status":"publish","type":"post","link":"https:\/\/asia-prop.com\/en\/column\/business-model-for-entering-vietnam\/","title":{"rendered":"Business model for expanding into Vietnam"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_36_1 counter-hierarchy ez-toc-counter ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">table of contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><label for=\"item\" aria-label=\"Table of contents\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;\"><svg style=\"fill: #999999;color:#999999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999999;color:#999999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input type=\"checkbox\" id=\"item\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/asia-prop.com\/en\/column\/business-model-for-entering-vietnam\/#%E3%83%99%E3%83%88%E3%83%8A%E3%83%A0%E3%81%B8%E9%80%B2%E5%87%BA%E3%81%99%E3%82%8B%E3%81%A8%E3%81%8D%E3%81%AE%E3%83%93%E3%82%B8%E3%83%8D%E3%82%B9%E3%83%A2%E3%83%87%E3%83%AB\" title=\"Business model for expanding into Vietnam\">Business model for expanding into Vietnam<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/asia-prop.com\/en\/column\/business-model-for-entering-vietnam\/#%E3%83%99%E3%83%88%E3%83%8A%E3%83%A0%E9%80%B2%E5%87%BA%E3%81%AE%E3%83%93%E3%82%B8%E3%83%8D%E3%82%B9%E3%83%A2%E3%83%87%E3%83%AB\" title=\"Business model for entering Vietnam\">Business model for entering Vietnam<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/asia-prop.com\/en\/column\/business-model-for-entering-vietnam\/#%E3%83%93%E3%82%B8%E3%83%8D%E3%82%B9%E3%83%A2%E3%83%87%E3%83%AB%E2%91%A0%E3%80%80%E9%A7%90%E5%9C%A8%E5%93%A1%E4%BA%8B%E5%8B%99%E6%89%80\" title=\"Business model \u2460 Representative office\">Business model \u2460 Representative office<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/asia-prop.com\/en\/column\/business-model-for-entering-vietnam\/#%E3%83%93%E3%82%B8%E3%83%8D%E3%82%B9%E3%83%A2%E3%83%87%E3%83%AB%E2%91%A1%E3%80%80%E6%9C%89%E9%99%90%E8%B2%AC%E4%BB%BB%E4%BC%9A%E7%A4%BE\" title=\"Business Model \u2461 Limited Liability Company\">Business Model \u2461 Limited Liability Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/asia-prop.com\/en\/column\/business-model-for-entering-vietnam\/#%E3%83%99%E3%83%88%E3%83%8A%E3%83%A0%E3%81%B8%E9%80%B2%E5%87%BA%E3%81%99%E3%82%8B%E3%81%A8%E3%81%8D%E3%81%AE%E6%B3%A8%E6%84%8F%E7%82%B9\" title=\"Points to note when expanding into Vietnam\">Points to note when expanding into Vietnam<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"%E3%83%99%E3%83%88%E3%83%8A%E3%83%A0%E3%81%B8%E9%80%B2%E5%87%BA%E3%81%99%E3%82%8B%E3%81%A8%E3%81%8D%E3%81%AE%E3%83%93%E3%82%B8%E3%83%8D%E3%82%B9%E3%83%A2%E3%83%87%E3%83%AB\"><\/span><span style=\"font-size: 18pt;\">Business model for expanding into Vietnam<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For long-term business success in Vietnam, you need a comprehensive distribution network, including partnerships with Vietnamese distributors. It is important to deepen your understanding of sales partners and consumer markets, and to select the right business model.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Foreign companies need to determine the most suitable business model based on their requirements and functions, including the products and services they offer, target markets, capital requirements, costs, quality control, and operational flexibility.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Foreign companies generally start their business in three ways.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E3%83%99%E3%83%88%E3%83%8A%E3%83%A0%E9%80%B2%E5%87%BA%E3%81%AE%E3%83%93%E3%82%B8%E3%83%8D%E3%82%B9%E3%83%A2%E3%83%87%E3%83%AB\"><\/span><span style=\"font-weight: 400;\">Business model for entering Vietnam<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><strong>representative office;<\/strong><\/li>\n<li style=\"font-weight: 400;\"><strong>Service Company (Limited Liability Company)<\/strong><\/li>\n<li style=\"font-weight: 400;\"><strong>Trading Company (Limited Liability Company)<\/strong><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is necessary to select the most suitable business model for investors, and to manage the goals and operations according to each model.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this section, we introduce these definitions and characteristics.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E3%83%93%E3%82%B8%E3%83%8D%E3%82%B9%E3%83%A2%E3%83%87%E3%83%AB%E2%91%A0%E3%80%80%E9%A7%90%E5%9C%A8%E5%93%A1%E4%BA%8B%E5%8B%99%E6%89%80\"><\/span><span style=\"font-weight: 400;\">Business model \u2460 Representative office<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Representative office in Vietnam<span style=\"background-color: #ffff00;\">lowest cost to set up<\/span>It&#039;s the simplest possible business model. Representative offices are mainly used for the following purposes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><strong>Point of contact with parent company<\/strong><\/li>\n<li style=\"font-weight: 400;\"><strong>Maintaining relationships with Vietnamese distributors<\/strong><\/li>\n<li style=\"font-weight: 400;\"><strong>quality management<\/strong><\/li>\n<\/ul>\n<p><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/asia-prop.com\/en\/column\/property\/office-for-rent\/\">Click here to view our office for rent in Ho Chi Minh City<\/a><\/span><\/p>\n<p><span style=\"font-weight: 400;\">A representative office usually has its own<span style=\"background-color: #ffff00;\">It is prohibited to generate profits and enter into direct contracts.<\/span>A representative office does not have legal status and can only enter into contracts with the parent company, and has a role as a coordinating function for promoting business in Vietnam. A representative office can hire employees, but is limited to renting out one office only. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">A representative office is suitable for deepening the understanding of the Vietnamese market and acting as a point of contact with the parent company. With no special capital requirements, representative offices can enter at a low cost.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although representative offices are relatively easy to set up and operate, they are very limited in scope of operations as they cannot issue invoices or sign contracts. However, this has the advantage of reducing the operational burden associated with accounting and taxes, and keeping operating costs low.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite the restrictions, it is not uncommon for foreign investors to choose representative offices as they can keep costs low, understand the market and coordinate activities with existing distributors.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E3%83%93%E3%82%B8%E3%83%8D%E3%82%B9%E3%83%A2%E3%83%87%E3%83%AB%E2%91%A1%E3%80%80%E6%9C%89%E9%99%90%E8%B2%AC%E4%BB%BB%E4%BC%9A%E7%A4%BE\"><\/span><span style=\"font-weight: 400;\">Business Model \u2461 Limited Liability Company<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Unlike a representative office, a foreign limited liability company (Limited Liability Company) can carry on business activities and issue local invoices in Vietnamese Dong (VND). Investor liability is limited to invested assets only and may employ local staff directly. However, under the limited liability company model, shares cannot be issued.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">companies<span style=\"background-color: #ffff00;\">There are no minimum capital requirements to form a limited liability company<\/span>. However, based on the size and scope of the project, it should be ensured that the amount of capital is reasonable. Certain industries such as banking, real estate, and auditing have certain registered capital requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are two types of limited liability companies for the purpose of selling in Vietnam.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><strong>service company<\/strong><\/li>\n<li style=\"font-weight: 400;\"><strong>trading company<\/strong><\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<h3><span style=\"font-weight: 400;\">service company<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The definition of a service company is<span style=\"background-color: #ffff00;\">A legal entity that has the function of providing services to third parties<\/span>is.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors use this model for research activities, quality control, product development, design, and logistics services. It is the simplest form of incorporation as a limited liability company, with less stringent time and capital requirements for incorporation compared to trading and manufacturing companies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although a representative office is easier to set up, if the operation and costs of a representative office start to rise, it is advisable to convert to a service company. Service companies increase operational flexibility in doing business.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">trading company<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">companies in Vietnam<span style=\"background-color: #ffff00;\">Engaged in import and export activities in addition to domestic distribution (retail, wholesale, franchise)<\/span>If you want to, the most common way is to set up a trading company. In general, setting up a trading company can strengthen the operational management of a foreign company in procurement, quality control and distribution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Compared to representative offices and service companies, it is common to require more capital when investing as a trading company, as it requires import and export activities and close coordination with suppliers and distributors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The application for a permit to set up a trading company takes four to six months from the date of submitting the application documents to the relevant authorities. Under the World Trade Organization (WTO),<span style=\"background-color: #ffff00;\">100% foreign company<\/span>can be established as<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E3%83%99%E3%83%88%E3%83%8A%E3%83%A0%E3%81%B8%E9%80%B2%E5%87%BA%E3%81%99%E3%82%8B%E3%81%A8%E3%81%8D%E3%81%AE%E6%B3%A8%E6%84%8F%E7%82%B9\"><\/span><span style=\"font-weight: 400;\">Points to note when expanding into Vietnam<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In Vietnam, foreign products are generally highly regarded for their quality, safety and reliability. Brand awareness comes from word of mouth, the internet, market promotions and advertising.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Expansion into Hanoi, Vietnam<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Trading companies that sell products related to Vietnam&#039;s infrastructure development, such as energy, aviation and telecommunications, focus on the area around Hanoi, where many of Vietnam&#039;s large state-owned enterprises are based. In addition, proximity to government authorities facilitates smoother government interactions and approval processes.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Tips for business success<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Companies domiciled in Vietnam must provide product information in Vietnamese to local agents and distributors. Business success in Vietnam requires more practical measures.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Due to Vietnam&#039;s rapidly growing economy, local agents and distributors in Vietnam often carry multiple brands. Therefore, foreign-affiliated companies can keep up with changes and developments in the local market through good relationships with local agents.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-\u30db\u30fc\u30c1\u30df\u30f3\u306e\u4e0d\u52d5\u7523\u306e\u8cfc\u5165\u30fb\u6295\u8cc7\u30fb\u58f2\u5374\u30fb\u8cc3\u8cb8\uff5c\u9234\u6728\u4e0d\u52d5\u7523 wp-block-embed-\u30db\u30fc\u30c1\u30df\u30f3\u306e\u4e0d\u52d5\u7523\u306e\u8cfc\u5165\u30fb\u6295\u8cc7\u30fb\u58f2\u5374\u30fb\u8cc3\u8cb8\uff5c\u9234\u6728\u4e0d\u52d5\u7523\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"5BzSJ2Jpqq\"><a href=\"https:\/\/asia-prop.com\/en\/column\/procedure-for-establishing-a-corporation-in-vietnam\/\">How to establish a Vietnamese subsidiary (limited liability, joint venture, stock)<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&quot;How to set up a local company in Vietnam (limited liability, joint venture, shareholding)&quot; \u2014 Buying, investing, selling and renting real estate in Ho Chi Minh | Suzuki Real Estate\" src=\"https:\/\/asia-prop.com\/column\/procedure-for-establishing-a-corporation-in-vietnam\/embed\/#?secret=XRBKAwlovS#?secret=5BzSJ2Jpqq\" data-secret=\"5BzSJ2Jpqq\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 18pt;\">Investment in Vietnam is Ho Chi Minh Suzuki Real Estate<\/span><\/p>\n\n\n\n<p>We support rental and purchase of condominiums, offices and investment real estate, mainly in Ho Chi Minh, Vietnam.<\/p>\n\n\n\n<p>Our strength is to provide buyers with accurate and accurate information in a timely manner.<\/p>\n\n\n\n<p>This website introduces the latest news articles on real estate, economy, travel, and events related to Vietnam.<br>Based on my experience as a consultant in Hong Kong, the article also introduces real estate, management, accounting, tax, and labor affairs.<br>If you like, please take a look.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:5px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"is-content-justification-center is-layout-flex wp-container-1 wp-block-buttons\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-background wp-element-button\" href=\"https:\/\/asia-prop.com\/en\/contact\/\" style=\"border-radius:10px;background-color:#ffa41c\">Inquiries about Condominiums for rent (free)<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:0px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":6870,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0},"categories":[67,137],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/asia-prop.com\/en\/wp-json\/wp\/v2\/posts\/6857"}],"collection":[{"href":"https:\/\/asia-prop.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/asia-prop.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/asia-prop.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/asia-prop.com\/en\/wp-json\/wp\/v2\/comments?post=6857"}],"version-history":[{"count":18,"href":"https:\/\/asia-prop.com\/en\/wp-json\/wp\/v2\/posts\/6857\/revisions"}],"predecessor-version":[{"id":130604,"href":"https:\/\/asia-prop.com\/en\/wp-json\/wp\/v2\/posts\/6857\/revisions\/130604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/asia-prop.com\/en\/wp-json\/wp\/v2\/media\/6870"}],"wp:attachment":[{"href":"https:\/\/asia-prop.com\/en\/wp-json\/wp\/v2\/media?parent=6857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/asia-prop.com\/en\/wp-json\/wp\/v2\/categories?post=6857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/asia-prop.com\/en\/wp-json\/wp\/v2\/tags?post=6857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}