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

-

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.

Comments

Post a Comment

Popular posts from this blog

ESOP of non-public companies in Vietnam

-
In recent years, Employee Stock Ownership Plan (" ESOP ") is becoming a popular solution for Vietnamese enterprises in their human resources strategy. The issuance of shares under ESOP (" ESOP Shares ") by the public company is subject to regulations of Law on Securities, which shall not be applied to the non-public company. This article expresses some relevant respects of issuing ESOP Shares by the non-public company in compliance with current Vietnamese Law. Conditions of ESOP Shares issuance While the public companies planning to issue ESOP Shares shall closely comply with provisions of Decree No. 155/2020/ND-CP promulgated by the Government on 31 December 2020 guiding on the execution of Law on securities (hereinafter referred to as " Decree 155/2020 "), the non-public company shall not be subject to. Although conditions for ESOP Shares issuance of the non-public company are absent in Law on Enterprises as well as other legal documents, the non-public ...
Read more

Amending provisions on cooperation and investment with foreign investors in education

-
Decree No. 86/2018/ND-CP regulating on foreign cooperation and investment in education was issued on 6 June 2018 and took effect from 1 August 2018 (hereinafter referred to as Decree 86/2018). After 3 years of implementation, in addition to remarkable results in creating a legal framework for a foreign entity participating in the educational development of Vietnam, Decree No. 86/2018 has also revealed inadequacies and asynchronous issues. Therefore, it is necessary to promulgate a revising decree amending and supplementing articles of Decree No. 86/2018 (hereinafter referred to as Draft). This article points out a brunch of new and prominent regulations amended in the mentioned Draft. Firstly, the Draft supplemented the entities eligible for engaging in joint education: In particular, the Draft supplemented the entities eligible for engaging in joint education that are private educational institutions established and operating in Vietnam (regardless of investment capital in Vietnam or ...
Read more

The integrity of data message from a legal perspective (Part 3)

-
In Vietnam, electronic documents, emails, telegraphs, faxes,… which are familiar forms and can be easily collected and evaluated the integrity, electronic data is a much more comprehensive and diverse concept. The definition of electronic data specified in Clause 1, Article 99 of the Criminal Procedure Code 2015 may refer to: ” Electronic data is a   symbol, letter, digit, image, sound or similar form created, stored, transmitted or received by electronic means”.   Electronic data is collected from electronic media, computer networks, telecommunication networks, online, and other electronic sources collectively referred to as the electronic environment. Electronic data is invisible and immaterial because the electronic environment is a “virtual” environment. In addition, non-border or territorial electronic data may be initiated in one country while such data is stored in another (e.g., online gambling cases in Vietnam but the server system that stores gambling data is all abr...
Read more