After decades of slow economic growth, Vietnam began to expedite its economic growth by inviting foreign investors into the country. Southeast Asia’s third-largest economy, Vietnam, is attractive to those who want to expand their business reach. The country was colonised by the French after the Second World War, but Vietnam took back its power and positioned itself as an independent contender. If you are planning to do business here, you need to be aware of both advantages and disadvantages.
Growing economy
The renovation policy implemented in 1986 changed things. It focuses on modernisation and innovation, which are two characteristics appealing to investors and entrepreneurs. Prior to the policy, the Vietnamese economy was agrarian, but now it is industrialised, delivering more and more opportunities for investors.
Facilities
The government is trying to create a business environment that makes things convenient for foreign investors. For instance, the transport network has improved exponentially, making travel easy for tourists. Vietnam is also an excellent tourist destination, a fact that’s given rise to the likes of Anantara Quy Nhon Villas. The country’s historical and cultural allure makes it a great event destination as well; event planners of all sorts are drawn by the ease of finding a hotel in Quy Nhon.
Ease of doing business
To attract investors and boost entrepreneurial development, Vietnam’s government has implemented changes in the regulatory business environment. These changes have made the process of starting a business easier. The World Bank has highlighted Vietnam on its ease of doing business list. The cost of starting a business here is much lower than it used to be, and the online accessibility of information has been expanded. Also, businesses no longer have to submit hard copies of VAT returns; it can be done through an online portal.
Ownership regulations
When it comes to owning their business, foreigners face a dilemma. Some types of businesses cannot be owned by a foreign national alone, which leaves them with the option of joint partnership. There are some lines of businesses that can be completely owned by a foreigner, but more often than not, the investor needs to obtain government approval.
Complicated registration process
This is another negative fact about doing business in Vietnam. The registration process of a business is a lengthy one. If you are lucky, you’ll be able to complete the process in a month, but in the worst-case scenario, authorities can drag it on for three to four months.
Requirement of a residential address
One of the directors of the company needs to have a residential address in Vietnam; this adds to the cost of starting a business. The investors need to submit proof of residential address during the registration process.
Cultural obstacles
Vietnamese culture is very conservative. The people here aren’t very straightforward and focus a lot on saving face. Due to the hierarchical structure of the business environment, the decision-making process can be lengthy; a foreign investor has to be patient when doing business in Vietnam.
Growing economy
The renovation policy implemented in 1986 changed things. It focuses on modernisation and innovation, which are two characteristics appealing to investors and entrepreneurs. Prior to the policy, the Vietnamese economy was agrarian, but now it is industrialised, delivering more and more opportunities for investors.
Facilities
The government is trying to create a business environment that makes things convenient for foreign investors. For instance, the transport network has improved exponentially, making travel easy for tourists. Vietnam is also an excellent tourist destination, a fact that’s given rise to the likes of Anantara Quy Nhon Villas. The country’s historical and cultural allure makes it a great event destination as well; event planners of all sorts are drawn by the ease of finding a hotel in Quy Nhon.
Ease of doing business
To attract investors and boost entrepreneurial development, Vietnam’s government has implemented changes in the regulatory business environment. These changes have made the process of starting a business easier. The World Bank has highlighted Vietnam on its ease of doing business list. The cost of starting a business here is much lower than it used to be, and the online accessibility of information has been expanded. Also, businesses no longer have to submit hard copies of VAT returns; it can be done through an online portal.
Ownership regulations
When it comes to owning their business, foreigners face a dilemma. Some types of businesses cannot be owned by a foreign national alone, which leaves them with the option of joint partnership. There are some lines of businesses that can be completely owned by a foreigner, but more often than not, the investor needs to obtain government approval.
Complicated registration process
This is another negative fact about doing business in Vietnam. The registration process of a business is a lengthy one. If you are lucky, you’ll be able to complete the process in a month, but in the worst-case scenario, authorities can drag it on for three to four months.
Requirement of a residential address
One of the directors of the company needs to have a residential address in Vietnam; this adds to the cost of starting a business. The investors need to submit proof of residential address during the registration process.
Cultural obstacles
Vietnamese culture is very conservative. The people here aren’t very straightforward and focus a lot on saving face. Due to the hierarchical structure of the business environment, the decision-making process can be lengthy; a foreign investor has to be patient when doing business in Vietnam.