How to set up a manufacturing company in VIETNAM (Ho Chi Minh City)

Generally speaking, the foreign investors are encouraged to open the factory to manufacture the products in Vietnam for local sale and/or export, except for some prohibited products as they are often toxic or cause harmful to the environment. In order to run the factory, it is required to set up a manufacturing company

The most important issue to set up the manufacturing company is to find the proper location of the factory with 02 following options for your selection:

(i) The location of the factory is based outside an industrial zone.

- Choosing the proper location which must be incompliance with the following requirements: (i) it is in conformity with the manufacturing zoning plan of the locality; and (ii) it is far from the residential areas, hospitals and schools.

- Conducting the procedures for issuance of the approval policy for locating the factory in that location. If the State approves that location, they will issue the decision on land lease. When the manufacturing company is set up, it will sign the Land Lease Agreement with the State.

- Seriously noting the issues relating to the environment, waste water treatment, labour, fire prevention and fighting, compulsory insurance packages as a compliance matter before the factory is in the official operation.

(ii) The location is inside the industrial zone

Given the fact that the industrial zone is formed to serve for the manufacturing activities with the certain existing facilities and technical infrastructure, so if the factory is located inside the industrial zone, it is free from some requirements such as the waste water treatment system, leasing the land from the industrial developer, instead of the State as mentioned in the option above.

Moreover, as for the small manufacturing business, the foreign investors can lease the existing workshop from the landlord to quick launch the manufacturing activities. At the later stage, when the business is better, the expats can lease land to build their own factory.

We hope that the above is informative and useful. Should you have any relevant question, please reach me via my email: Protected content . Thank you.