Question: We are one of the leading freight forwarding companies in Singapore and now have plan of strengthen our wins to worldwide branches . Presently we have our own setup in USA and BKK apart from our Singapore four offices and now the new project which we plan to launch is the Vietnam office.
After did some market research understood that Vietnam has big potential in terms of logistics and volumes Getting increases rapidly.
Have all this in consideration, we would very much appreciate if you could kindly guide us with the Business setup.
Below are the main points which we need to gather before kick off further,
01) Could we have our own setup as per 2014 law
02) If its JV, who could be our partner
03) Could you direct as to strong freight forwarders which we could work as JV
04) What kind of partner suitable for JV
05) If we place one our staff how the law will be applicable
06) Does Vietnam government offer resident visa for ex-pact, yearly.
07) Do we need to palace investment and if so what will be the minimum amount
08) If any other details necessary
Answen: First of all, we would like to say thanks for your interests in our services.
As may you know through our article, from 2015, foreign investors have right to set up 100% foreign owned company (100% FOC) in the field of freight forwarding services in Vietnam if such foreign investors is the trader of one member of WTO and they are doing business of feign forwarding service in their country.
In Vietnam, freight forwarding service is a conditional sector, therefore, the competent authority shall manage strictly from starting of setting up company to operation process.
Therefore, although there is not any regulation stated in laws on minimum investment capital requirement, however, normally, other foreign investor shall invest at least of 500,000 USD for this kind of business because your project must be approved by some ministries of Vietnam such as the Ministry of Industry and Trade, Ministry of Finance, Ministry of Planning and Investment and Ministry of Transportation after submission of application dossier for obtaining the Investment Certificate and the Business Registration Certificate at the Licensing Authority.
With regard to the staff of company, in fact, the licensing authority assumes that your company cannot be operated with only one staff.
Therefore, In licensing process, we shall explain on submission document that your company shall recruit some employees (including foreigner and Vietnamese staffs).
However, in operation time, your set-up company has not to obey with such explanation above on man-force demand.
With regard to the visa applicable to expatriates, at this time, the foreigners who work for company in Vietnam can apply for annually visa. After setting up company, we will help you do it.
With regard to the Joint Venture Company (JVC), the competent authority shall encourage foreign investors make JVC with Vietnamese investors. Normally, Vietnamese Investors in this sector must also be supplier of freight forwarding service. At this time, we have not any available candidate to introduce to you.
We hope above information is helpful for your decision. After getting decision whether your company will set up 100% FOC or JVC, we will send you our proposal on setting up.
