Foreign company in Vietnam - Top 5 most prominent names

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Unilever, Honda, Nestlé, Samsung and Microsoft are major companies that have invested capital in Vietnam since the 1990s. These companies have successfully exploited market characteristics and taken advantage of the state's legal incentives to business development.

Foreign investment in Vietnam is expected to come under control in 2022, when countries will gradually open up their economies and adapt to the new normal. Vietnam still has a competitive advantage in terms of labor costs and infrastructure, especially since it has signed a series of new-generation free trade agreements. The business situation of foreign enterprises in Vietnam is very feasible. This is most clearly shown through the top 5 leading foreign companies in Vietnam today.

Top 5 largest foreign companies in Vietnam

1. Unilever

Unilever is one of the world's leading multinational companies specializing in food, home and personal care products. Unilever is currently operating in more than 150 countries and territories around the world. Its commitment is to improve the quality of life of people worldwide through high quality products and services.

Unilever has been operating in Vietnam since 1995 and has invested more than 300 million USD to build modern manufacturing plants in Ho Chi Minh City and Bac Ninh province. With an annual growth rate above the market average, Unilever Vietnam has become one of the most successful foreign investors in Vietnam.

Many Unilever brands have become famous brands in Vietnam such as P/S, Omo,... It is estimated that consumers across the country use 35 million Unilever products every day.

Unilever

2.Honda

Understanding that motorbikes are an important and primary means of transport in Vietnam, Honda Vietnam always tries its best to bring customers the highest quality motorcycle products manufactured in friendly factories with the environment at a reasonable price.

Since Honda entered the Vietnamese market, the company has continued to invest in building production infrastructure to meet the growing demand of the market, which accounts for almost 90% of the motorcycle market share in other countries. Up to now, Honda Vietnam has had six factories manufacturing and assembling motorcycles and motorcycle parts.

In 1996, Honda Vietnam was established under the joint venture of Honda Motor Company of Japan, Honda Motor Company of Thailand Asia, and Vietnam Automobile Agricultural Machinery Company, and manufactures motorcycles and automobiles.

Honda has been in the Vietnamese market for over 20 years, developing motorcycle and automobile production in this market and continuing to be a leader.

3. Nestlé

Nestlé Vietnam Co. , Ltd. Was founded in 1995. The company is 100% foreign-owned and currently belongs to Nestlé SA, the world's largest food and beverage group in 191 countries, with 328,000 employees worldwide.

Nestlé Vietnam currently operates four food and beverage factories in Dong Nai and Hung Yen, with more than 2000 employees nationwide.

Currently, Nestlé Vietnam has a total investment capital of more than 600 million USD. This is the foundation for Nestlé to aim for long-term development in Vietnam, while improving the quality of life and contributing to a healthier future for multi-generational Vietnamese families.

4. Samsung

Samsung Vietnam-A subsidiary of Samsung Group in South Korea. The company specializes in manufacturing electronic products. In Vietnam, the company is currently the largest in the country with annual sales of billions of dollars.

Samsung Vietnam Company or Samsung Electronics Vietnam Co., Ltd. Consists of two manufacturing plants, Bac Ninh and Thai Nguyen. Of the nine South Korean factories owned by Samsung Group, two in Vietnam produce almost one-third of the company's global production. Samsung Group has invested a cumulative total of approximately US $ 17 billion in Vietnam.

Samsung

After 12 years of operation and development in Vietnam, Samsung Electronics Vietnam Co., Ltd. Has created more than 100,000 jobs for different types of workers. It not only supports the growth of the Vietnamese economy, but also provides employment opportunities for many Vietnamese workers.

5. Microsoft

Nowadays, Microsoft Corporation's software products are used in 90% of personal computers worldwide. Furthermore, Microsoft has become a pioneer in the personal computer revolution. This has created an opportunity for companies to recognize and “expand” to the global market.

Microsoft currently has branches in more than 90 countries around the world. Thanks to that, it has created jobs for many workers around the world. With over 40 years of experience building and growing, this business has laid the foundation for a solid presence.

Microsoft

Microsoft Vietnam is currently one of the fastest growing Microsoft members in Asia. Since opening our office in Hanoi in January 1996, we have continued to expand our business until July 2007 when we opened an office in Ho Chi Minh City. Ho Chi Minh. Microsoft's focus in Vietnam is to work closely with the government to reform education, drive national innovation, and strengthen the government's IT capabilities.

Why do foreign investors choose Vietnam to set up a company?

According to economic experts, foreign investors are coming to Vietnam, and Vietnam is clearly likened to the "new tiger" of Asia. First, Vietnam considers foreign companies as hardworking companies due to its abundant labor force and cheap skilled workers. This is one of the important factors to reduce the production cost of all the goods that Korean companies export to the third country market.

Second, Korean investors are being attracted by Vietnam's large consumer market, with a population of more than 96.6 million people. Vietnam has a growing middle class and its economy is growing relatively rapidly.

Third, Vietnam's political stability relative to other emerging economies helps companies trying to avoid trouble gain more confidence when investing.

Vietnam is an ideal business development environment

How to set up a foreign company in Vietnam?

Investment sectors and professions banned from investment

Investment in industries and trades harmful to the following sectors are classified in the group of industries banned from investment, including:

• National defense, national security and public interest.

• Great historical, cultural, moral, and customs relic of Vietnam.

• The government has banned investment in industries that harm people's health, destroy resources and destroy the country's environment.

• Hazardous waste transportation projects, production of hazardous chemicals, use of hazardous substances are prohibited by international treaties.

Note: Foreign investors investing in Vietnam for the first time must have an investment project and carry out investment registration or investment verification procedures at a competent state agency. In addition, foreign investors investing in conditional investment lines need to ensure certain investment terms.

Specific requirements for each field when setting up a foreign-funded enterprise

The conditions for establishing a foreign company in the production field are as follows.

• Foreign investors need to ensure they have a place to carry out their projects. If your project is located in an area with investment incentives, you need to prepare investment incentive documents as required.

• The purpose of the investment project should be in line with the regional development plan and the national development direction.

• Investors need to demonstrate their financial ability to execute the project.

• Investment projects need to ensure environmental and safety conditions.

Conditions for setting up a commercial enterprise with foreign investment

• Investors must provide a platform for the implementation of the project.

• The investor must demonstrate financial capacity to implement the project.

• In addition, investors involved in entrepreneurial activities must have experience.

• Import and export goods must have TN VED codes, and goods involved in import and export activities are not included in the list of prohibited or restricted imports. In addition, the goods must comply with the rules of the international trade organizations of which Vietnam is a member.

Note: Investors must meet the established practice certificate, authorized capital and investment capital conditions. When foreign investors invest in Vietnam, they must meet the foreign investor ratio set for each project.

Conditions for establishing an enterprise with foreign capital in the service sector

Foreign investors wishing to work in the service sector must meet the following conditions:

• Investors are allowed to register only those service sectors for which Vietnam has committed to open its market when joining the WTO.

• Ensure Vietnam's service commitments upon WTO accession.

• The investor must have a place to implement the project.

In addition, the investor must demonstrate the financial ability to ensure that the project is carried out in accordance with the obligations.

The above information on conditions for foreign investors to set up companies in Vietnam has helped you to know which investors are eligible to invest in Vietnam for early approval to complete your project.

Required documents and information

When choosing foreign-funded company establishment services in the field of legal arts, you only need to provide:

• Information about the company being created: company name, address, industry, authorized capital, participants/shareholders…

• Consular Authentication Confirmation of bank account balances or financial statements of foreigners to confirm financial solvency.

• Copies of Headquarters Lease Agreement and Red Book.

• If the investor is an individual, provide a certified copy of the passport. Consular legalization of business registration, if the investor is an organization.

Setting up a foreign company in Vietnam is not too complicated. In fact, there have been many successful companies investing in the Vietnamese market.