Need-to-know basic business cost for new setting up in Vietnam

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The cost of establishing and operating a business in the early stages is always one of the top concerns when Japanese investors invest in Vietnam. With the advantage of being a country with low cost, Vietnam is becoming an attractive destination for Japanese investors in all fields. The following information will provide Investors with an overview of the basic costs of establishing and operating a business in Vietnam.

1.    Forming a foreign-invested enterprise

 

No.

Procedures

Associated Cost

1

Applying for Investment Registration Certificate (“IRC”) at the Department of Planning and Investment

$2,500 or more

(Depending on business lines that Investors intend to do in Vietnam)

2

Applying for setting up a foreign-invested enterprise at the Department of Planning and Investment

(After the IRC is granted)

$500 - $800

3

Making a corporate seal

$10

4

Legalizing foreign documents (USD/document)

$90 - $130

5

Translating Japanese documents into Vietnamese (USD/page)

$10 or more

6

Paying business license fee[1]

(USD/year)

$86 - $130

(Depending on scale of charter capital of company)

7

Opening investment capital account at a licensed bank in Vietnam

Free of charge

8

Opening bank account(s) for daily transaction of company

Free of charge

9

Notifying the bank account(s) to the Department of Planning and Investment

Free of charge

10

Making digital signature (USD/year)

$60 - $70

11

Buying electronic invoice[2]

(USD/ 100 e-invoices)

$4.5 - $5

12

Registering for electronic tax service on https://thuedientu.gdt.gov.vn/

Free of charge

13

Buying electronic social insurance software

$20 - $25/year

 

2.    Office, ready-built factory, land rental

The costs of office, ready-built factory and land rental depend on the location, area, quality, etc. of the leased area. The figures below are for reference only.

 

No.

Criteria

 Average leasing price 

Hanoi

Da Nang

Ho Chi Minh City

1

Virtual office

(USD/month)

$60 - $100

2

Physical office

(USD/m2/month)

$12 - $41

$10 - $18

$12 - $35

3

Ready-built factory

(USD/m2/month)

$4.5 - $5.1

$3.3 - $4.7

$3.2 - $4.8

4

Land in industrial zone

(USD/m2/50 years)

$78.3

$33.4

$74.2

 

3.         Minimum salary for employees[3]

 

The salary for each employee depends on the position, title, professional level, capacity of the employee and agreed by the parties, but must not be lower than the regional minimum salary below:

 

Area

Area I

(Hanoi, Hai Phong, Ho Chi Minh City, Binh Duong)

Area II

(Hai Duong, Hung Yen, Bac Ninh, Quang Ninh, ...)

Area III

(Thai Nguyen, Nam Dinh, Ha Nam, ...)

Area IV

(Other area)

Minimum salary per month

$190

$168

 

$147

$131.6

 

4.         Others

 

No

Contents

Associated Cost

1

Electricity[4]

 

 

Electricity for manufacture (USD/kWh)

$0.04 - $0.13

 

Electricity for service (USD/kWh)

$0.06 - $0.2

2

Water

 

 

Water for manufacture (USD/m3)

$0.52 - $0.57

 

Water for service (USD/m3)

$0.91 - 1.08

3

Internet (USD/account/month)

$9.37 - $37.5

 



[1] Pursuant to Decree No. 139/2016/ND-CP dated 04 October 2016 issued by the Government regulating on business license fee;

[2] Pursuant to the Decree No. 119/2018/ND-CP dated September 12, 2018 issued by the Government regulating on electronic invoices when selling goods and providing services, all businesses are required to use electronic invoices from July 1, 2022.

[3] Pursuant to the Decree No. 90/2019/ND-CP issued by the Government on November 15, 2019, providing for the regional minimum salary for employees working under labor contracts.

[4] Pursuant to Decision No. 648/QD-BCT dated 20/3/2019 of the Ministry of Industry and Trade on adjustment of average retail electricity price and regulation of electricity selling price.

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