- Vietnam Industrial Zones (IZs) are designated areas where industrial activities, manufacturing, and services are concentrated. These zones are created by the Vietnamese government to attract foreign investment, promote economic development, and create job opportunities for local residents. IZs in Vietnam are typically located in areas with good infrastructure, such as transportation networks, utilities, and communication services. The zones offer a range of benefits and incentives to investors, such as tax breaks, reduced land rental fees, and streamlined administrative procedures.
- The IZs in Vietnam are managed by local authorities or by the Vietnam Industrial Zones Authority (VIZA), which is a governmental agency responsible for overseeing the development and management of IZs in the country. VIZA’s main responsibilities include planning and managing the development of IZs, attracting investors, and promoting industrial production and exports.
- There are currently over 300 IZs in Vietnam, covering a total area of more than 93,000 hectares. These zones host a variety of industries, including electronics, textiles, food processing, and automobile manufacturing. Some of the most notable IZs in Vietnam include the Hoa Lac Hi-Tech Park in Hanoi, the Quang Chau Industrial Park in Bac Giang province, and the Amata City Bien Hoa Industrial Park in Dong Nai province. Overall, Vietnam’s IZs have played a significant role in the country’s economic development, attracting foreign investment, and generating employment opportunities. They continue to be an important component of Vietnam’s economic growth strategy.
- If you are planning to set up your business in Vietnam Free Trade Zones, you need to understand that not only is it important to choose the right industrial zone for the establishment of your business and registration of your companies, but also the customized professional guidance to secure company registration within the shortest time. Tetra Consultants’ team of business setup experts is experienced in assisting international clients with business setup in free zones like Vietnam Industrial Zones and ensuring the smooth onboarding of your business in the country.
In this article, our team has outlined the important points of consideration that you need to know about Vietnam Industrial Zones along with insights on the steps to register a company in such industrial zones of Vietnam.
Why should you choose to set up a business in Vietnam Industrial Zones?
- Incentives and benefits: Vietnam IZs offer a range of incentives and benefits to investors, such as tax breaks, reduced land rental fees, streamlined administrative procedures, and access to support services. These benefits can help reduce the costs of doing business and make it easier to get started in Vietnam.
- Infrastructure and utilities: IZs are typically located in areas with good infrastructure, including transportation networks, utilities, and communication services. This can help ensure that businesses have access to the necessary resources and support services they need to operate efficiently.
- Access to markets: Vietnamese IZs are well-positioned to provide access to the country’s growing market, as well as to markets in neighboring countries. This can be particularly attractive for companies looking to establish a foothold in the region or expand their operations.
- Labor availability: Vietnam has a large, young, and relatively low-cost workforce. Companies operating in IZs can benefit from this labor pool, as well as from access to training and support services to help develop the necessary skills.
- Proximity to suppliers: Vietnamese IZs are often located close to suppliers, which can help reduce transportation costs and improve supply chain efficiency.
7 Things To Know About Vietnam Industrial Zones
If you are considering setting up a company in a Vietnam Industrial Zone (IZ), there are several important things you should know before you begin the process. Here are a few key considerations:
- Eligibility requirements: In order to set up a company in a Vietnam IZ, you will need to meet certain eligibility requirements, such as having a specific amount of capital, a business plan, and a lease agreement for the land you plan to use.
- Industry-specific regulations: Depending on the type of industry you plan to operate in, there may be specific regulations or requirements you need to comply with. For example, if you plan to operate a food processing plant, you may need to obtain additional permits and certifications.
- Incentives and benefits: Vietnam IZs offer a range of incentives and benefits to investors, such as tax breaks, reduced land rental fees, and streamlined administrative procedures. Be sure to research the specific benefits available to you and factor them into your business plan.
- Land leasing agreements: When leasing land in a Vietnam IZ, it is important to carefully review the lease agreement and understand the terms and conditions, including rent, duration, and renewal options.
- Infrastructure and utilities: While Vietnam IZs are typically located in areas with good infrastructure and utilities, it is important to confirm that the necessary services are available and that they meet your needs.
- Labor considerations: Vietnam has a large, young, and relatively low-cost workforce. However, labor regulations and employment practices can be complex, so it’s important to seek legal advice and ensure that you comply with all relevant laws and regulations.
- Environmental regulations: Vietnam has strict environmental regulations, and companies operating in IZs must comply with these regulations. Be sure to factor any necessary environmental compliance measures into your business plan.
Steps to set up a company in Vietnam Industrial Zone (IZ)
Here are the general steps for setting up a company in a Vietnam Industrial Zone (IZ):
Step 1 – Choose an IZ: The first step is to research and choose an IZ that meets your business needs. Consider factors such as location, infrastructure, and industries that are already established in the IZ.
Step 2 – Obtain an investment registration certificate: Investors must obtain an investment registration certificate (IRC) from the local Department of Planning and Investment (DPI). This certificate serves as proof of the investment and outlines the terms and conditions of the investment.
Step 3 – Register the company: Once you have obtained an IRC, you can register your company with the DPI. You will need to provide a business plan, a company charter, and other required documents. The registration process typically takes several weeks to complete.
Step 4 – Obtain a land use right certificate: If you plan to lease land in the IZ, you will need to obtain a land use right certificate from the local government.
Step 5 – Obtain necessary licenses and permits: Depending on your business activities, you may need to obtain additional licenses and permits from various government agencies.
Step 6 – Corporate bank account opening: After receiving your license, you must proceed to corporate bank account opening. By engaging Tetra Consultants you can leverage our vast banking network and rely on our banking team to secure a bank account with a local or internationally reputable bank within 4 weeks.
Step 7 – Register for tax and social insurance: All companies operating in Vietnam must register for tax and social insurance with the local tax authorities.
Step 8 – Obtain necessary visas and work permits: If you plan to hire foreign employees, you will need to obtain visas and work permits from the local immigration authorities.
- It is important to note that the process for setting up a company in a Vietnam IZ can be complex, and requirements may vary depending on the specific IZ and industry. Hence it is always recommended to seek professional assistance from local experts or legal advisors to ensure that you meet all necessary requirements and comply with all relevant regulations.
- Tetra Consultants’ team of business setup experts has years of experience assisting international clients with company setup in Vietnam Industrial Zones ensuring accurate advice concerning the legal requirements and process of setup.
Looking to start a business in Vietnam Industrial Zones?
- We at Tetra Consultants recognize that the process of identifying the industrial zone most appropriate for your business is difficult and so is the process of registering your business in any of the Vietnam free trade zones. We offer you our full Vietnam Industrial Zones company setup services, where we will recommend to you the most suitable Free Zone for your business and guide you through the relevant application processes. We will also ensure that you are aware of the requirements of the government and relevant authorities and that you comply with the laws in each zone.
- Contact us if you wish to find out more about the Vietnam Industrial Zones and our team will revert to you within the next 24 hours
