Step 1: CHOOSE A LEGAL ENTITY
Two most common legal entity types for foreign investors in Vietnam are a limited liability company (LLC) and a joint-stock company (JSC).
For small to medium-sized businesses, setting up a limited liability company would be the most suitable option. The corporate structure of an LLC is simple and it can have 1 to 50 members.
On the other hand, establishing a joint-stock company would be the best option for medium to large-sized businesses. It has a more complex structure than a limited liability company. However, as opposed to an LLC, joint-stock companies have shareholders instead of members.
Step 2: SET UP A FACTORY
Location: In general, there is no restriction on the location of the factory. You can establish your manufacturing company either inside an industrial zone or outside of it.
However, the benefit of an industrial zone is that it already has the necessary infrastructure, such as water and waste systems. Therefore, your factory would already be in compliance with the requirements.
In general, the process of setting up a manufacturing company in Vietnam is the same as for any other foreign investment company. However, there are some additional licenses and special requirements for manufacturing companies.
#1 Investment registration certificate
First of all, you must obtain an investment registration certificate from the Department of Planning and Investment. The investment license allows you to conduct business activities in Vietnam.
#2 Business registration certificate
Secondly, you need to apply for a business registration certificate. After the Department of Planning and Investment has issued the certificate, you have 90 days to make the capital contribution.
#3 Licenses and requirements
Thirdly, you may need additional licenses or submit some reports. This depends on the business line, products that will be manufactured, and whether the production will have an impact on the environment.
- Construction permit – in case you intend to build a new factory or a warehouse
- Fire protection and fire safety license
- Certificate of Food Safety
- Certificate of Food Safety knowledge
- Announcement of technical regulations conformity
- Register an Environmental Impact assessment report
Setting up a manufacturing company in Vietnam can take up to four months, including the acquisition of all the necessary licenses for production.
However, it would be much easier for you to do all steps above in Vietnam, because Vietnamese law allows authorization in company registration process. Therefore, you can outsource a consulting firm to setup a manufacturing company in Vietnam, then, all you have to prepare is just a copy of your passport.