1 / 11

Top 10 Challenges of Doing Business in Vietnam

With a growing GDP, modern infrastructure, and rising FDI, Vietnam is an attractive investment destination. However, business challenges remain, and navigating them is easier with local expertise.<br>Learn more: https://antlawyers.vn/library/top-10-challenges-of-doing-business-in-vietnam.html

ANTLawyers
Download Presentation

Top 10 Challenges of Doing Business in Vietnam

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ant@antlawyers.vn https://antlawyers.vn/ Top 10 Challenges of Doing Business in Vietnam

  2. 1 Starting a Business Starting a business in Vietnam involves over 10 procedures, making it one of the most complex environments for startups. Foreign companies may find many requirements unfamiliar, such as registering the company seal with authorities or publishing a formation notice in a local newspaper, adding to the challenges of market entry. ant@antlawyers.vn https://antlawyers.vn/

  3. Dealing with Construction Permits Obtaining construction permits in Vietnam takes 110 days and involves 11 procedures, requiring interactions with multiple authorities. Inspections are conducted by the Department of Construction and the municipality, while permits must be secured from the Fire Prevention Department, the Department of Construction, and the Department of Natural Resources and Environment. 2

  4. STEP 3: Getting Electricity 3 Obtaining an electricity connection in Vietnam is a complex process, taking 115 days and incurring high costs. It requires inspections by the local power corporation before completing procedures with the Traffic and Transport Department and the Fire Prevention Department, adding to the challenges faced by startups.

  5. @reallygreatsite reallygreatsite.com Registering Property Registering property in Vietnam takes 57 days to complete, which is far higher than the OECD norm but around average for East Asia and Pacific. Contracts between the transferor and the transferee are signed before taxation is paid and registration for the right to use land is complete. 4

  6. 5 Getting Credit Vietnam offers a stable credit environment, making capital access relatively smooth for businesses. However, the absence of a private credit bureau can pose challenges for foreign companies seeking financing.

  7. 6 Protecting Investors Doing Business in Vietnam Investor protection is an area in which Vietnam needs to improve. It is ranked in 169th place by the World Bank and IFC, with a weak director liability index and shareholder suits index.

  8. 7 Paying Taxes There are massive 32 corporate tax payments to be made each year which takes an average of 872 company hours to complete. Compared to the OECD norm of 176 and the East Asia and Pacific average of 209, taxation is one of the most burdensome processes of doing business in Vietnam.

  9. Trading Across Borders 8 Given its strong manufacturing base and reliance on interconnectivity, trading across borders is a cheap endeavour. However, that isn’t to say the process is not complicated, and the stream of documentation required for both importing and exporting highlights that cross- border trade can be difficult at the best of times.

  10. 9 Enforcing Contracts and Resolving Insolvency Enforcing contracts takes 400 days to complete and 34 procedures. Resolving insolvency is a far more laborious process, taking five years on average to complete and with a low recovery rate.

  11. 10 Culture The Vietnamese believe in the teachings of the early Chinese philosopher Confucius which emphasize the importance of relationships, responsibility and obligation. Vietnam is also a collectivist country and community concerns will almost always come before business or individual needs. ant@antlawyers.vn @reallygreatsite reallygreatsite.com https://antlawyers.vn/

More Related