Vietnam now becomes a potential market that attracts a lot of global investors, essentially in manufacturing due to many reasons. Creating a manufacturing company is no easy task, it takes a lot of capital, expertise, and strategy to become successful – but it can be done, in the industry for some tips to get started on the right foot.
1. Research the location.
Regardless if you are looking for a manufacturer or setting up your own manufacturing unit, you need to do extensive research before you make a decision. Trade journals and fairs are good avenues to research and connect with manufacturers.
Research is for finding a good area to locate your factory is the most important thing you need to do at the first step. The factory should be located near the airport, seaport or technique employees… depends on your producing demands.
Renting a factory inside Vietnam Industrial Zones is an ideal solution. The Industrial Zone usually has sufficient legal documents, support transportation, and has the incentive of taxes.
2. Get the legal details sorted out.
Visit the local government websites and talk to people in the know about the kind of licenses and certifications required to set up is a tip. Once this is done, you can confidently go ahead with buying equipment and hiring employees for your business.
3. What products will you produce?
This will depend very much on who your target customers are. For example, you might produce items such as food products, clothing, ceramics, toys, or giftware for the consumer market. And in Vietnam, depends on each product shall have legal provisions and conditions onto. Thus, you may need to find details of legal information on each kind of product you want to produce.
As a foreign direct investment (FDI), basically you will need Investment Registration Certificate (IRC) and Enterprise Registration Certificate (ERC). Besides, sub-licenses are enforceable for manufacturing are fire protection license and report of environmental protection. Some kinds of products when manufacturing shall need more conditions or requirements. Such as agricultural products shall need approval certificate from the Ministry of Agriculture, medical products need the quality certificate from the Ministry of Health, etc…
5. Registered capital
There is a minimum capital required. However, the charter capital is going to be determined by your initial costs. And in the beginning, your costs will be calculated on the investment. This means you can start with a basic capital for initial cost and increase the capital then.
6. Buy an existing business
You might decide to buy an existing factory based business rather than start your own venture from scratch. Buying a going concern can mean that the products, customers, regular sales, staff, premises, and equipment are already in place.
But buying a business can be a hazardous, expensive process unless you have the right skills and experience on your team, including legal and financial know-how. Establish the genuine trading and financial position, so that the price you pay for the business is not too high.
7. Meet the Experts Advancing for Manufacturing in Vietnam
All issues of looking for a good location, licenses, labor, tax, finance, and so on, asking the assistance from the experts might save your time the most.
Finally, starting a manufacturing business in Vietnam is not the easy task, you should take time to learn and do a detailed plan before starting.
Reference: Vietnam Insider