Experience of establishing a company in Vietnam - Delco Construction

Experience of establishing a company in Vietnam

Foreign investors, when expanding their market to Vietnam, are often confused in company establishment because of concerns about legal procedures in Vietnam.

FDI attraction in Viet Nam (1988-2018)

Why we choose Vietnamese market?

Although Vietnam has a complicated legal system, it still attracts foreign investors, because:

  • – 60% of the population is of working age, with skilled workers but cheap labor
  • – Vietnam is located in the center of Southeast Asia, where is a suitable destination for investors to penetrate and conquer the Asian market.

Photo: DELCO participated in a discussion with Japanese investors on investment in Vietnam during the event in Shizuoka – Japan

3 types of company establishment for foreign investors in Vietnam

Choosing the right type of business is a problem that many investors are wondering.

1. One member limited liability company (when there is only 1 investor)

This type of business has a low start-up cost, with a compact scale, easy-to-manage structure. One member LLC offers a future of development, suitable for most foreign investment industries (except for import and export, logistics, …)

2. Two-member limited liability company (when there are 2 investment individuals or 1 individual and 1 organization)

Most foreign investors choose this type to form joint ventures with domestic companies. Market knowledge of partners are advantages and premise for foreign investors to deploy projects in Vietnam.

3. Joint stock company (with 3 or more shareholders)

Rarely does small and medium investors want to start a company in this form because of its disadvantages:

  • – Foreign investors have their shareholding rate restricted in accordance with the Law on Investment of Vietnam
  • – Investors are not flexible in investment decisions

Company establishment process in Vietnam

Implementation of procedures for issuance of Investment Certificate: online declaration, direct submission 15 days
Processing dossiers and issuing investment certificates 15 days
Engrave the seal and announce the use of the seal sample on the National Business Registration Portal 5-8 days
Open a bank account 1 day

This is a quite complicated procedure, so in order to establish a company quickly, neatly, accurately and effectively, most foreign enterprises come to Vietnam to seek consulting services.

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