How did we help a foreigner who has never been in Vietnam Set up a factory in Vietnam succesfully? (case study)
17 August, 2020
This is a true story that we helped an American (who has never stepped in Vietnam due to COVID-19) set up a factory in Vietnam successfully and cheaply. 90% satisfied with our services. Let’s see how:
He wants to manufacture Essential Oil Delivery System for in-shower use in Vietnam and export back the US market (as image)
He had outsourced many companies to manufacture each part of the product then connect them into a unique product, as the demand growing, this way of business does not bring high productivity and deadline. That propelled him to think about opening his own factory in Vietnam: import material, end-to-end manufacturing, 100% export to the US.
As the setup cost in Vietnam is quite low, his own factory will also low down the unit price.
And the most valuable thing we brought to him (by our consulting) is how to get tax incentives from the Vietnam government.
He wanted to start small, the starting investent is about $300,000, then expanding slowly.
As an investor, He must know well about the efficient investment in Vietnam, He is in the US with limited information about Vietnam, a lot of questions raised into his head while the need for his factory was very urgent:
- What is the process of opening a factory in Vietnam?
- Is there any tax incentives?
- Even know well about the process of opening a factory, how to take it in action while he cannot go to Vietnam due to COVID-19?
He searched Google and found us (vnclearview.com), fortunately, we are a right agent that can answer 3 questions above and brought his need come true.
– He asked us:
What is the process of opening a factory in Vietnam? I am from the US, my product is about beauty product
– We replied:
To manufacture your products in Vietnam, you must own a legal entity (in your case, best suited is a limited liability company or LLC) with the purposes registered to the authorities are manufacturing beauty products and exporting to the US.
To setup this LLC, you have 2 choices:
- You’ d lease a ready built factory, after that you’ll own a leasing contract, then apply for an investment certificate (click Here).
- You’d lease a land for 50 years then build your own factory on that. You must own a leasing contract of land 1st, then apply for an investment certificate and construction permit.
If you care about Set up cost estimate, let’s give us more detail about types of products, location in Vietnam. Or if you already have fixed budget, we can consult you to optimize that for you to setup in Vietnam appropriately.
– He replied:
I want to lease a ready built factory near Hanoi, thinking Here (the website providing warehouse and factory for lease), I want to do this as quickly and cheaply as possible…
– We replied:
I checked your link and called them,
The price they said is: $4.5/m2/month (excluding 10% VAT) in Haiduong 55 Km away from Hanoi.
But currently available some much cheaper factories from our partners we helped, about 25 km from Hanoi, just 3 to $3.5 (excluding VAT):
Newly built-Ready infra: 600KVA electricity, water, sewage treatment plant, road, public light-Inside precedential industrial zones-Japanese standard-30 minutes to Hanoi by highway, 24/24 secuirity.
Actually, He had researched about warehouse market in Vietnam for days, but never thought such low price as we recommended for him ($3 to $3.5 per square meter per month) because we are working directly with the owners of warehouses while the price market with the same standard is $4.5 to $6). This is as a lightning to him, he really cared about about our recommendation.
I offered him 3 warehouse options, exchanging tens of emails , He asked his friends in Vietnam to visit the warehouses, after all He chose the one above and wanted to hasten the process of making warehouse leasing contract, this is a basis to apply for the investment certificate (the important paper to set up LLC).
We helped him modifying, editing, adding clauses or provisions of the leasing contract in a way that could secure him before court, in case of the owner’s contractual violations.
Next is the process of setting up a limited liability company (LLC), REMOTELY…
Here is how He can set up a company in Vietnam remotely as i sent emails to him:
Steps to create an LLC:
-Rent a factory and own a renting contract.
-Register your charter capital.
-Choose a legal representative as a director of the LLC in Vietnam, must prepare:
- Notarized passport (8 copies) and notarized bank account credentials (2 copies) that certifies the account balance that is equal or bigger than the charter capital you registered. In case, he is in his country, his notarized passport and bank account credentials shall be consular legalized at the Vietnamese Embassy in his country and send us those documents including some word forms prepared by us via email for printing out->Sign-> Send together all documents through Post.
-After received, we’ll use those documents above to apply for the investment certificate (handled by us).
-Apply for the business registration certificate (handled by us).
-Apply for other licenses (if any).
-Bank opening: After you have the investment certificate, within 90 days, you must bring it to one of the banks in Hanoi and open an account.
Why choose us:
-CEO of vnclearview.com is an expert in the construction field, He has 10 years experience in constructing warehouse, factory. He knows well about good locations, connecting directly with owners of warehouses for cheapest price. He’d modify, add, edit clauses, provisions of contract to secure and protect you before law. Or even design, consult you the best way to build a new warehouse, factory as cheaply as possible.
-CEO of vnclearview.com is closely connecting with senior lawyers: legal consulting, setup company, tax and policy. This is an end-to-end solution that faciliates and hastens the process of setting up your factory, At the same time: You are able to lease/build a cheap warehouse and be consulted to prepare dossiers to register for a legal company right a way. Vnclearview eliminates the inconvenience that either of these entities would bring:
- If you lease a warehouse through an intermedium, they do not know what are the next steps you should do after you own a leasing warehouse. You need spending time to contact with a legal firm to register a company for you, that will take a lot of time and money
- If you connect to a legal firm to understand about process of setting up a manufacturing company, they also do not know how to lease a warehouse, without a warehouse leasing contract, everything will stop there
If you contact with Vnclearview, you only raise one single problem of you: How to setup a factory in Vietnam as quicly and cheaply as possible, the answer is the case of this guy above.