Foreign investments in Vietnam have been achieving great popularity and gaining much traction over the years. The country’s economy is among the fastest-growing globally, and one of the biggest and most exciting stories lies in Vietnam’s retail and trading activities.
More and more foreign venture capitalists and investors are eyeing the retail businesses, including the retail outlet segment, as they believe they are where the opportunities are.
Requirements, Procedure, and Timeline to Open an Outlet Store in Vietnam for Foreign Investors
To position your business for success, you will first need to know the requirements and procedure to start an outlet in Vietnam as a foreign investor. If you have doubt, don’t hesitate to tap into the expertise of Cekindo.
- Before you can open a Vietnam outlet, you must have already had a retail business registered and running in the country.
- If you don’t have a retail company in Vietnam yet, you shall first register a company in the retail business line;
- If you have had a company set up in Vietnam already, but it is not registered in the retail business category, you need to register for retail business activities first. In short, you will have to add the proper retail business line into the business lines that your company is currently involved in.
- Once the company is established and the retail business line is added, you will have to acquire the law’s compulsory licenses.
- You can only operate your business when the authority approves your registration, and you have obtained the required licenses such as a trading license and retail outlet license.
Frequently, setting up a company or adding trading business lines to your existing business takes about one month to complete. For processes to obtain your trading license and retail outlet establishment license, the timelines are two to three months and three to four months, respectively.
Required Licenses for Establishing a Retail Outlet in Vietnam
Foreign investors are obligated to obtain specific licenses when establishing an outlet in Vietnam. Two mandatory licenses are the trading license and the retail outlet establishment license. The trading license serves as a permit to commence your retail outlet operation, either in the form of an online sale or physical outlet store. Then, you shall proceed with applying for the retail outlet establishment license.
Restrictions on Business Activities
As long as it is based on Vietnam’s legal scheme, goods trading in imports, exports, wholesale, and retail are allowed for foreigners. Goods trading is restricted only when the traded goods are on the prohibited goods trading list or when the traded goods require particular trade licenses.
The restricted traded goods for outlets in Vietnam for foreign investors include sugar, rice, lubricants, books, magazines, newspapers, and recorded items. However, this restriction does not apply to sugar, rice, books, recorded articles, magazines, and newspapers when a company distributes these items in convenience stores, mini supermarkets, or supermarkets.
How Cekindo can Assist
As you can see from our detailed guide above, opening a Vietnam outlet can be an arduous and time-consuming process since it is now going through dynamic development. The laws are often changing. So why do it alone when you can quickly get help from professionals?
Cekindo provides business registration and commercial consultancy service for foreign investors to set up an outlet in Vietnam. For many years, our expert business consultants have helped foreigners worldwide get off the ground by setting up their businesses in Vietnam.
You are on your way to living your dream as a successful entrepreneur and business owner. Consult with Cekindo today. Fill in the form below.