Vietnam

Operating a Business in Vietnam

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Individual company 300 million of Dôngs	1 member Indefinite responsibility	Check the proposed company name and obtain a business registration certificate: VND 200,000. Obtain a seal-making license from the Public Security: VND 20,000. Make a company seal: VND 165,000-370,000. Publish announcement in a daily newspaper: VND 700,000. Apply for a tax code at the Municipal Taxation Department and pay business license tax: VND 1,000,000. Buy pre-printed VAT invoices from the Municipal Taxation Department: VND 20,000 per book (50 copies).
Private Limited Company 600 million of dôngs	Minimum 2 partners Liability is limited to the contributions.	Check the proposed company name and obtain a business registration certificate: VND 200,000. Obtain a seal-making license from the Public Security: VND 20,000. Make a company seal: VND 165,000-370,000. Publish announcement in a daily newspaper: VND 700,000. Apply for a tax code at the Municipal Taxation Department and pay business license tax: VND 1,000,000. Buy pre-printed VAT invoices from the Municipal Taxation Department: VND 20,000 per book (50 copies).
Joint-stock company 500 million of dôngs	Minimum 7 partners Liability is limited to the contributions.	Check the proposed company name and obtain a business registration certificate: VND 200,000. Obtain a seal-making license from the Public Security: VND 20,000. Make a company seal: VND 165,000-370,000. Publish announcement in a daily newspaper: VND 700,000. Apply for a tax code at the Municipal Taxation Department and pay business license tax: VND 1,000,000. Buy pre-printed VAT invoices from the Municipal Taxation Department: VND 20,000 per book (50 copies).

Business setup procedures: The Committee of State for Co-operation and Investment (THIS) is the organisation where status must be registered.
The competent organization: The Committee of State for Co-operation and Investment (THIS) is the organisation where status must be registered.

Working conditions

Legal weekly duration: People ussually work 48 hours a week spread over 5 and a half days. Employees in the Administrative Sector work 40 hours a week.
Retirement age: 55 years old for women and 60 years old for men.
Working contracts: There are two types of labor contracts:
- An indefinite term labour contract: the two parties do not determine the term and the time for termination of the validity of the contract;
- A definite term labor contract: the two parties determine the term and the time for termination of the validity of the contract as a period of twelve (12) to thirty six (36) months; or a labor contract for a specific or seasonal job with a duration of less than twelve (12) months.

Cost of labor

Minimum wage: 420 USD/person/year
Average wage: Average monthly gross earnings in Vietnam is VND 2,240,912 (USD 126).
Social contributions: Social security contributions paid by employers: 15 %.
Social security contributions paid by employees: 5 %.

Social partners

Social dialogue and involvement of social partners: The General Confederation of Labor co-ordinates provincial and local trade unions with regards to problems concerning labor and companies supervision for labor conditions.
Unions: Vietnam General Confederation of Labor
Unionization rate: The rate of unionization is not a public figure but is close to 100%.
Labor regulation bodies: Ministry of Labor, Invalids and Social Affairs
Vietnam General Confederation of Labor