大咖福利影院

@Joe Su

For what it's worth:聽 I also considered setting up a small business here and I have VN wife so could have used her as the principal.聽 However, after looking at the bureaucracy and chances for all sorts of obstacles I decided it was far wiser just to leave my money invested overseas. A pity but a current reality.

Also, I have watched MANY Vietnamese try to start businesses and fail within months.聽 I suggest doing very careful market research first聽 Many of my wife's friends talk of having to shut down their businesses because of poor custom.

Hello Joe Su,

Welcome to 大咖福利影院 馃榾

In the meantime, while waiting for feedback, I recommend taking a moment to read the following article:

Starting a business in Vietnam

Cheers,

Cheryl

大咖福利影院 team

You might also want to consider a joint venture op, as the full foreign-invested process (IRC 鈫� ERC 鈫� post-licensing, bank setup, etc.) can easily take up to 6 months depending on the province and business line. A JV can simplify part of the procedure and reduce some ongoing costs

If you need more details, feel free to DM me, I鈥檝e helped quite a few foreigners set up their businesses here, among other things

@KKK36

Indeed it is very challenging for small business to survive. From the quotations I have received, it seem like landlord are expecting to rent out their place from 3,000 to 5,000 USD per month. In additional, accounting firms are also charging at 150 to 200 USD monthly. Let alone there is a 鈥渃offee money鈥� culture as well. This easily add up to 7,000 to 8,000 USD on monthly operation. But based on cost of living and typical Vietnamese salary. I am not sure is this a reasonable investment commitment as I have no prior business experience. Perhaps, consultation or specialty services can seek for higher premium to cover up the cost. But for small cafe businesses. It seem very difficult or impossible to run鈥�

** Originally, I thought VN might be a good place for me to try doing something I like. But thinking deeper again. Even though Singapore rental (for a small kiosk store) can cost like 4,000 to 5,000 SGD but there is no need accounting firms (typically the owner can setting it). Also, registering a business is very easy and cost maybe 300 SGD under ARCA. Sum up commitment and earning based on SGD... it seem more attractive to set up at Singapore

...What are other alternative path I can consider? I will be glad to know more about your insight on this. Thank you! - @Joe Su

That depends: Is your main goal a successful business with acceptable ROI?

Or are you motivated--as many foreigners are--by a desire to escape the tourist visa system and establish long-term residency here?

If that is the case for you, you would probably find it simpler to qualify for an investment visa.

Depending on the amount you are willing to invest that can qualify you for a 3-year or 5-year or 10-year temporary resident card (TRC)

@KKK36
Indeed it is very challenging for small business to survive. From the quotations I have received, it seem like landlord are expecting to rent out their place from 3,000 to 5,000 USD per month. - @Joe Su

That's definitely true.

A good friend of mine here in 膼脿 N岷祅g recently attempted to sell his turnkey business, but didn't get any takers. He even told me he would have been willing to simply turn the whole thing over to someone else to keep from giving it all to the landlord (he owned a restaurant business near M峄� Kh锚 Beach).

That got me interested until I found out that the current monthly rent would be 鈧�60,000,000 VN膼

馃槺

Hello

Foreign Investment and Business in Vietnam: A Reality Check

The Warning: Avoiding Local Control

As a foreigner, you cannot operate fully like a native Vietnamese person unless you surrender all legal documentation (often to a local nominee who may seize control once the business becomes profitable).

The Only Safe Solution: The FIE

Your sole and unique solution is to establish a Foreign Invested Enterprise (FIE) by securing an Investment Registration Certificate (IRC). This crucial step guarantees your right to repatriate your dividends or the proceeds from the sale of your company abroad. This way, you remain the sole master of your own business.

Day-to-Day Operations

Operational requirements鈥攊ncluding accounting, tax (VAT/CIT), necessary permits, and safety/hygiene certifications鈥攁re the same for foreign and local businesses.

Mandatory Audits

You will also be subject to a mandatory Statutory Audit, performed every X to X years (typically 1 to 5 years) depending on the amount of capital invested. The lower the invested capital, the more frequently the audit is required.

The Failure Rate

A critical note: 90% of foreigners who launch businesses fail within 3 years. This high turnover rate is often attributed to a failure to conduct thorough, serious feasibility studies before launching.

It is obvious that there are greater headwinds for a foreigner starting a business in VN.聽 However, it's worth keeping in mind that the failure rate on starting a new business in any country is high.馃槈

Hello
Foreign Investment and Business in Vietnam: A Reality Check
The Warning: Avoiding Local Control
As a foreigner, you cannot operate fully like a native Vietnamese person unless you surrender all legal documentation (often to a local nominee who may seize control once the business becomes profitable).
The Only Safe Solution: The FIE
Your sole and unique solution is to establish a Foreign Invested Enterprise (FIE) by securing an Investment Registration Certificate (IRC). This crucial step guarantees your right to repatriate your dividends or the proceeds from the sale of your company abroad. This way, you remain the sole master of your own business.
Day-to-Day Operations
Operational requirements鈥攊ncluding accounting, tax (VAT/CIT), necessary permits, and safety/hygiene certifications鈥攁re the same for foreign and local businesses.
Mandatory Audits
You will also be subject to a mandatory Statutory Audit, performed every X to X years (typically 1 to 5 years) depending on the amount of capital invested. The lower the invested capital, the more frequently the audit is required.
The Failure Rate
A critical note: 90% of foreigners who launch businesses fail within 3 years. This high turnover rate is often attributed to a failure to conduct thorough, serious feasibility studies before launching. - @berpasfrvn

Are you simply going to post answers you received from your favorite AI program?

It's really obvious that's what you've been doing recently

@OceanBeach92107

Albeit, humanized.

@OceanBeach92107

Absolutely not. This is simply the process I followed for my second venture in Vietnam. If it looks like something an AI would do, it just means it's current, which I'm happy about.

You might also want to consider a joint venture op, as the full foreign-invested process (IRC 鈫� ERC 鈫� post-licensing, bank setup, etc.) can easily take up to 6 months depending on the province and business line. A JV can simplify part of the procedure and reduce some ongoing costs
If you need more details, feel free to DM me, I鈥檝e helped quite a few foreigners set up their businesses here, among other things - @KB Vu

Also, if your plan is a small caf茅, maybe check out some local franchise options too. A few brands here have really simple, ready-to-use systems

Going full FDI for a small F&B setup can get a bit heavy and pricey. A JV tends to be the easier path unless you鈥檙e aiming for something larger or involving import/export

Just an extra perspective that might help!!!

Hello,

I鈥檓 the owner of a cafe-resto, and I am currently looking for a partner to work closely with me as my schedule has become quite tight. The company is fully registered and all legal paperwork in Vietnam has been properly completed.

I am open to discussing opportunities for cooperation, either as a chef partner or co-founder, with your name on the company registration if we decide to formalize the partnership.

If this is something you might consider, I would love to discuss it further and explore how we can work together to grow the business.

Looking forward to your thoughts.

Best regards,

@Tiffany Tr

Hello and welcome !

I would invite you to post an advert in the Vietnam classifieds, under the business partners section so that interested members can reach out to you.

Thank you

Bhavna

I may have posted this thought earlier in this thread, but I think it bears repeating:

We learned a lot about the viability of business models in Vietnam during a crisis such as the COVID pandemic.

Any food & beverage businesses a foreigner might have had in Vietnam during that time would have been forced to close for at least a few months, during times of severe restrictions and absolute shutdown.

Not in all cities, but certainly that was so here in 膼脿 N岷祅g where I experienced the most restrictive levels of shutdown from July into October and beyond in 2020.

For a short while, delivery was still an option, or pickup for take away outside the door of the facility.

But that eventually evolved into total shutdown of all F&B businesses.

The only sources of food available to foreigners during that time were the grocery stores in places such as Vincom Mall--a large Vinmart/Winmart--Lotte Mart, MM Mega Market, etc...and Quick Marts & "t岷�p h贸a" Vietnamese grocery stores.

In fact, when the lockdown was most severe in 膼脿 N岷祅g, There was only one excuse acceptable for walking outside your home, and that was to be going to and from a grocery store (or to a hospital, etc).

The F&B owners I know who survived this period of time were those who had a small grocery store incorporated into, but distinctly separated from, their cafe or restaurant.

Gordon North was perhaps one of the most successful examples of a forward thinker:

His H峄檌 An business--"Dingo Deli"--had always had a small grocery area at the front of the restaurant, selling the imported foods that are most sought after by foreigners, especially his fellow Australians.

When it became clear to him that shutdowns would probably be on the horizon, he purchased three huge freezer chests and actually positioned them to cordon off the restaurant in the rear from the grocery area in the front. In addition to increasing the dry goods that he carried, he filled those freezer chests up with all of the essential frozen food items he could fit into them.

So foreigners in H峄檌 An continued to have a regular source of "Foreigner food" In addition to the Vietnamese t岷�p h贸a markets and quick marts that remained open around town.

As restrictions were eased, his restaurant business picked up right where it had paused at the direction of the government.

(A sad side note: "Dingo Deli" has recently been listed for sale as a complete turnkey operation. I don't know the exact reasons why. Hopefully it was a proactive choice by Gordon and his family. He's very private guy on social media so I wouldn't know if there had been a sad turn of events in his personal life 馃檹)

More importantly, this year has changed the policy on the type of business and tax, so many F&B businesses have difficulty doing this.

That is also the reason why I clearly state that the tax declaration procedure permit needs to be well understood by local people.

If you invest as a co founder who does not need to invest too much money, you could get a visa to stay for 2 years (with extension), just support the operation.

If you transfer or open your own business, you also need legal and tax factors from the beginning.