Doing business in Vietnam is now the path many foreigners look forward to considering. Do you have a business idea yet? What business should you do effectively in Vietnam? What are the best online and offline businesses to start in Vietnam? How to get started? This article will show you first how to start a business in Vietnam and in the second part we will look what are the most profitable small business to start in Vietnam.

PS! Before you continue with the article, we recommend our free online export-import business course. You can enroll below.

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Why Should Do Business In Vietnam

If you are considering doing business in Vietnam, or you want to export to Vietnam, or import somethings from there, then here are some notes to know:

Business Opportunities In Vietnam

Vietnam is a dynamic market. It offers a great potential for foreign businesses to invest:

Vietnam has had miraculous development steps and is in an accelerating growth stage. Vietnam has a big population, leading to high consumer demand. The speed of urbanization in Vietnam has progressed quickly, and the purchasing power has increased rapidly. Vietnamese people invest more and more in education, dining outside, relaxation, health, cosmetics. Purchasing of western and foreign products is gaining popularity.

Vietnam economy and trade overview

Challenges In Vietnam business environment

Nowadays, with the development of the internet and many service companies, it is easier to do business in Vietnam. You invest online or offline in Vietnam. But still, there are difficulties you might have.

• Difficulties in the initial budgeting

To open a store, you will need the venue rental costs, procurement costs, furniture, advertising costs, labor costs, transportation costs, etc. These are necessary costs for a retail store for example. Very often some costs cant be adequately estimated on the planning stage.

• Difficulties in infrastructure

You will have difficulty accessing real estate resources. Currently, in big cities of Vietnam, real estate is expensive. It can be a challenge for you to set up a company in Vietnam.

• Difficulties with bureucracy

Legal procedures, company setup, opening a bank account, applying for export-import licenses and doing other formal and legal procedures can be headage in terms of a complex bureaucracy. It is highly recommended to use the help of a local partner or trustworthy consulting company.

• High level of frauds

If doing contracts and transactions with local Vietnamese partners, then as a foreigner you should be especially careful. It is advisable to use the help of a local consultancy or partner.

How To Choose The Right Business To Start in Vietnam

There are thousands of choices of business to do in Vietnam. No matter what kind of business you start, the best is to focus on the field you are interested in and know well. Start with market research and analysis of your chosen business ideas.

The following steps and processes help you make sure about your business potential and give the foundation for further planning:

Step 1: Market analysis

Market analysis is a thorough data-gathering and analysis process. It includes collecting the information from the market and its surrounding environments on a micro and macro basis. In the micro aspect, you should collect information about players on the market. Local competitors and their partners. About their market shares, pricing, their products, the technology they use, strategies, marketing and selling channels and the overall demand of the market, and possible segments you can target. This data, after being analyzed can give you an overview of the situation in the particular market.

On the macro aspect, you should collect information about the laws and rules affecting this business field now and in the future. You should also search the trends in the technology, regulations, environmental policies affecting this particular business.

It is extremely important to analyze the market and other affecting aspects. All this will be the basis from where to start planning and building your business strategy and making investment decisions.

People who do not understand the market well will not develop their business or even fail. Market analysis is a tool that helps to limit risks, plan and increase profits for your businesses in the future.

PS! No product/service can satisfy everyone’s needs. Use the information collected from the market analysis stage to choose your target audience. Don’t forget to tailor your product/service to your potential customers.

Read also: How to get export orders and fulfill them.

Step 2: Evaluate the qualifications and management capacity 

It is crucial for businesses to improve the quality of human resources.

Based on the business plan you should create a plan on the requirements of human resources for your business: including necessary knowledge and skills, assessing the quality of current human resources. This means : 1) Based on your business specifics you should make sure what kinds of positions should be created. 2) What kind of requirements will be for hired people of each position in your company.

Step 3: Analysis of the technical and technological conditions

To select the technology for a manufacturing business project, you conider the followings:

  • Production technology should meet the requirements on planned product categories, capacity, and product quality levels.
  • Compare the types of machines and technological lines available on the market with different technical and economic parameters suitable for your production.
  • Available capital, materials, machinery, human resources, the properties of raw materials.
  • requirements on environmental protection and improvement of working conditions for your factory workers.
  • Consider carefully the final results of the calculation and comparison of the economic efficiency of the different technology options.

Step 4: Capital assessment, payback period, risks, and returns

To improve capital management in business, you can:

  • Calculate business break-even point in the terms of required monthly revenue.
  • Analyze monthly the progress and financial result of the company
  • Calculate the ammount of required working capital
  • Have a investment plan with projection of return
  • Have a sales plan.
  • Digitizing the accounting process
  • Monitor the cash flow
  • Strategic assessment of potential investments
  • Measure liquidity status regularly

Establish Company In Vietnam

Foreigners who establish a company in Vietnam must do some procedures:

For each investment field, there are conditions on procedures, capital contribution ratio, and documents for foreigners. In the following, we will look the main steps and procedures for foreign investors looking to invest and start a company in Vietnam.

You must prove your financial capacity to invest in Vietnam by confirming with your bank

Process of establishing a company in Vietnam as a foreigner

Implementation process – 3 steps

Step 1: You must declare online the information about the investment project on the National Foreign Investment Information System in Vietnam.

Within 15 days from the date of online declaration, you shall apply for the Investment Registration Certificate to the Investment Registration Authority.

Step 2: After the Investment Registration Authority receives the application, you will have an account to access the National Information System on Foreign Investment to monitor the processing of the application.

Step 3: The investment registration authority will use the National Foreign Investment Information System to receive and return the results of investment registration dossiers, update the status of application processing, and issue code numbers for projects.

The dossier submitted to the investment registration agency includes:

• A written request for the implementation of an investment project;

• Copy of identity card or passport for individual investors; a copy of the Certificate of Establishment or other equivalent document certifying the legal status is an organization;

• Commitment to the financial support of the parent company; financial institution’s commitment to financial support; guarantee on the financial capacity of the investor; documents explaining the financial capacity of the investor;

Top Highly Profitable Busines Ideas In Vietnam For Small And Medium Businesses

Each country has its strengths and weaknesses. Vietnam has rich natural resources suitable for the manufacturing, production, and mining industries.

Here are the highly profitable businesses for small and medium businesses. Most of the following are related to manufacturing. Vietnam is a great place for manufacturing and exporting.

Traditional Business (Offline) 

Traditional business is a form of business where the owner needs to invest capital in renting premises, hiring employees, opening shops to sell the products or services. In Vietnam, to set up a business serving the local market, you need to have a representative office. 

It is recommended to start a manufacturing business in Vietnam with the goal to start an export business in Vietnam. Vietnamese-made products can have low cost, which makes these competitive on the international markets.

Traditional local businesses in Vietnam

1. Building Materials (Most Area, Better In The Countryside For More Space)

The construction company trade in two main types:

Foundation materials: People will exploit and use them in the construction process. Other raw materials are cement, steel, bricks, etc.

Finishing materials: to complete the rough construction, the works will need the accessories to complete wall tiles, sanitary ware, paint.

Building materials business is diverse and profitable. You should not sell many goods, only trade in one necessary material. As you will need to use an amount of capital.

2. Medical Equipment (Most Area, Better In The Cities)

Business in medical equipment is currently one of the fields that many people are interested in. The demand for high-end medical equipment in medical facilities is high.

90% of medical equipment in Vietnam comes mainly from China, the United States, Japan, and Germany, India. The most popular product groups are examination, testing, intensive treatment, disposable devices, and accompanying supplies.

It is best to find out the genuine medical equipment distributors to get a source of quality equipment. Medical equipment can provide great export-import business opportunities, especially in the current pandemic era.

3. Technology Products (In The City)

High-tech equipment helps the needs and requirements of people. And in it, technology products always have a strong attraction, receiving the love and trust of many people.

For the business of technology products, choosing the appropriate business form is crucial.

4. Electronic Equipment (In The City)

You need to establish a business plan, clear direction to bring your electronics business idea to reality. If you do not have experience in the field of working in the electronics industry, you can consult with consultants or people who may be knowledgeable in this field to tailor a business plan that you can implement. better. With electronics equipment, you can start an export-import business. You can import electronics from China, Korea and resell them on the local market. Also, Vietnam has its own electronic products industry, many of the local products can have export potential.

5. Export-Import Business (Most Area)

Vietnam’s import and export has grown fast to create the best conditions for production and business enterprises. Import-export and logistics will be a developed and stable industry in the future for investment. There are a lof of products which all can be exported abroad from Vietnam.

Read also: Export marketing to get more orders abroad.

6. Sale Spare Parts And Accessories For Cars And Motorbikes (Most Area)

You can choose a convenient location near a densely populated area, frequent traffic flow, and convenient traffic, possibly near car washes, motorbikes, or auto repair shops. You must understand what products people most often use, find reputable sources, ensure quality and suitable prices for business cooperation.

7. Pharmacy (Most Area)

Pharmacy is one of the indispensable necessities of human life. Trading pharmacy can be a way to get rich quickly and effectively applied by many people.

According to Vietnam’s regulations, if you want to open a pharmacy, you must have a university degree and specialized in business. You must have certificates of eligibility to practice, business registration license.

8. Finance Consultant (In The City)

Financial consulting is a profession that advises people with specific financial planning needs. A financial advisory service is to provides attractive financial business plans to clients.

Those who work as financial advisors must satisfy basic knowledge of securities, finance, tax, real estate, retirement, insurance, short-term and long-term investment strategies.

9. Real Estate Broker (Most Area)

This business is an intermediary between the landlord and the tenant or the seller and the buyer. You can get a commission on the sales made based on the agreed percentage.

As a real estate intermediary between landlords and tenants, it is crucial for anyone starting this business to have a good knowledge of lease and contract law. You can run a business from home, and you need to have enough space to receive customers. It requires a permit from the regulatory authority. It is important to know the real estate market very well in your area.

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10. Yoga Training Course (In The City)

Yoga is a sport. For business establishments, you need to have a certificate of eligibility for sports activities issued by the Department of Culture, Sports and Tourism.

Procedures to open a yoga class
  1. Step: Establishment of an individual business household/enterprise
  2. Step: Apply for a license to open a fitness center and teach aerobic yoga at the Department of Culture, Sports, and Tourism of the province or city where the business is registered.

11. Agricultural Materials (In The Countryside) 

In places like rural areas of Vietnam, people do agriculture, grow crops, grow rice, maize, cassava needs agricultural materials to cultivate.

You can open an agency specializing in trading materials for agricultural production, biological fertilizers, organic fertilizers. You can even sell farming recipes, seedlings, seeds to people in the area.

12. Fertilizer Import Business (In The Countryside)

Vietnam’s agricultural sector is increasing. Farmers are paying more and more attention to the necessary fertilizer products for each type of crop and each stage of development to achieve the highest yield.

If you want to import fertilizers or learn more about the procedure, you can contact law firms for advice.

13. Bonsai Business (Most Area)

In the agricultural business market, you can start with ​​plant seeds and flowers.

The products are broccoli, chrysanthemum, cauliflower, cabbage, strawberries, flowers from chrysanthemum, sunflower, etc. 

14. Poultry Farming (In The Countryside)

You can start a farming business if you have a source of arable land to use and customers interested in your products. You can start a poultry farming business if you already havr customers who need your source of supply. If you do not have customer-ready, it can be a risky business because the poultry products do not stay a long time.

15. Clean Fish Farming (In The Countryside)

What to sell in the countryside is a fairly common question.

You need to understand this business as it is not easy. It is about the land to make a fish pond, fish farming techniques. You can sell fish directly in the market or export to neighboring countries.

16. Farm-Stay/ Home-Stay Business (In The Countryside)

To prepare a homestay business, you need to know who your target customer is, age, interests, marketing strategy. This is a popular business and is based on inner tourism. Currently, because of the pandemic, this business may not be a good option.

17. Language Center ( Most Area, Cities)

Building a business plan is a crucial step to run a long-term language center.

To establish a business plan, you should do:

  • Write your basic business idea.
  • Gather all the metrics you can on the feasibility and details of your business idea.
  • Concentrate and refine your ideas based on aggregated data.
  • Define clearly, who are your customers, how to reach to them, what they want, what prices they can accept.

For this business, we recommend to make deep market research and do interviews with the possible customers to know exactly who they are, their language level and needs, their financial possibilities and requirements.

18. Advertising And Printing Business (Most Area)

The advertising business market for businesses and shops in the countryside is growing. Opening advertising and printing shops is an effective way of doing business in the cities or rural areas today.

The investment in machinery, technology, and editing skills on computers is necessary to equip, but the investment is not big.

19. Food Processing Business/ Food Ingredients Business (Most Area)

Vietnam is one of the countries with great potential to develop the food processing industry thanks to its rich raw materials.

To do food business, you need to have sufficient conditions to ensure food safety and a certificate of knowledge on food safety prescribed by the Ministry of Industry and Trade.

20. Cosmetics Business (In The Cities)

Vietnamese people need beauty care. Everyone wants to be beautiful and confidently communicate with others. Women like to wear makeup and lipstick to make themselves more beautiful and fresh. Popular are Japanese and Korean cosmetics. These products can provide great potential for importing businesses.

21. Sport Business / Football Business (Most Area)

Football has long been known as the “king sport” in many countries, including Vietnam. If you are leasing artificial turf football fields, you need to carry out the procedures to apply for a certificate of eligibility for sports business.

22. Open a Construction Business (Most Area)

Construction like houses, construction of office buildings, construction of civil and industrial works, construction of bridges and roads, water supply and drainage works, construction of traffic works in Vietnam is increasing day by day.

To establish a construction company, you need to register a business line, choose a legal representative, learn about business partners, the market, management, financial management, tax reporting, accounting. This kind of business required big investments.

23. Sanitary Ware Business (Most Area)

You can research about the sanitary or try the samples of the products to find the best products for your business.

24. Mechanical Equipment Business

Mechanical engineering provides all the necessary equipment for other industries, which is the basis and motivation for many industries to develop. With such importance, starting a career in mechanical engineering will have many advantages and open markets.

If you have your mechanical or metalwork workshop, you should diversify the products provided and regularly update new and creative models to meet the market demand. This field requires mechanical engineering knowledge and tools for designing like Autocad, Solidworks, Infusionsoft. From the production side, you need specific metalworking machinery and equipment to produce the components and details.

Read also: A case study for importing equipment from China.

25. Business Of Accounting And Auditing Services

Business accounting services is one of the popular professions chosen by many businesses and is one of the crucial industries in the Vietnamese economy today. Every company needs accounting. Based on the accounting reports the taxes will be calculated and financial reports will be created. Banks and investment institutions will review the financial reports for making investment decisions.

Accounting service enterprises are:
  • Limited liability company with two or more members;
  • Partnerships;
  • Private enterprise

Accounting service business has the services as accountancy, financial statement preparation, accounting consultancy, financial planning, Investment planning, and other services within the contents of accounting work under this Law to organizations and individuals.

Online Business ideas

Online business opportunities in Vietnam

The online business is in the Internet environment, online through sales websites or e-commerce channels, selling on Facebook, Youtube, etc. This sales method will save you costs and rise profitability.

Advantages

It doesn’t cost too much from the start. Only need to invest in products and sales websites without spending on space or equipment for the store.

  • Low cost of business management.
  • Bring products to consumers as quickly as possible.
  • Many payment methods, customers can pay via card transfer, e-pay…

Disadvantages

  • It takes time to create trust for the online customers
  • Delayed goods during transit.
  • Difficult in building customer reliance and the business brand.

Below are some profitable online businesses

Online businesses to start in Vietnam

1. Software Development Services 

Software development services help customers maintain their software systems through debugging and updating existing software features or developing new software packages.

Services include:

 Software consulting, design, warranty, and maintenance services:

– Upgrading software products

– Deploy application software.

– Convert database.

Software product quality inspection:

– Develop product test scenarios and plans.

– Perform software testing

– Evaluate the stability of product functions.

– Service of checking, evaluating, optimizing code 

2. Online E-Learning Class 

Deciding to become an online teacher is the same as becoming an expert in the eyes of your future students. You should be sure to have a solid grasp of the basics of the subject you’ll be teaching. 

You can open online courses to teach subjects such as cooking, music, painting, communication, etc.

3. Online Export-Import Business 

New shopping habits create a new trend and form the need for new technologies and tools to be compatible.

E-commerce is an online export channel is a sales channel without geographical restrictions with many customers and low costs. The most effective way to succeed in e-commerce is to have a website to strengthen relationships with export-import customers. It is increasingly popular to use Amazon, Ebay, Shopify, Aliexpress to build e-commerce websites.

4. Buy And Sell Website

In the world, buying and selling websites is very popular and becoming a profitable business. This trend is gradually developing in Vietnam as online marketing becomes more and more crucial.

You can buy a website by contacting the website owner or through intermediary channels. It is common the people to purchase a website, then develop and improve it, after that sell it again with high profit.

The purchase and sale should have a clear contract stipulating information security policies and the rights and responsibilities of each party.

5. Online Sporting Goods Business

The demand for sports training, bodybuilding, and health care is increasing day by day.

You can provide online services to customers. They will stay at home, surf the web, choose the product they like, ask for advice from the seller and place an order to wait for delivery. It is a profitable online business, it is basically e-commerce but focuses on sports goods.

6. Handmade Items – Unique Items For The Online Business

Handmade crafts are interesting for many people. With unique, creative designs and artistic hands, many people are looking for these products. If you are good at handwork or making beautiful items, then you can consider selling your handmade products online at a premium price.

The advantage of handmade is that you spend small capital, mainly putting effort into making the products by yourself. So, product manufacturing cost itself is normally not much. The key is marketing and focusing on the right consumer segment to promote and sell the goods.

7. Develop The Mobile Apps

Today, mobile apps are popular. If you have a great idea, you can create an app that helps people solve problems. You can sell your apps in google play store and other poppular places.

8. Assistant / Task Manager

Do you have organizational skills? Problem-solving skills? Can you quickly and efficiently perform these tasks? Use your skills to become an assistant or task manager. Many companies are hiring virtual assistants for their online businesses.

9. Online Marketing / Consulting Business

The crucial activities and aspects that you need to think about are as follows:

  • Identify the services and target customers
  • Build a long-term business relationships with your customers
  • Through which channels do you find customers?
  • Define product and service packages you will provide
  • Staff recruitment and training
  • Office location

10. Game Programming/ Game Design Business

The gaming industry is one of the few markets that grow quickly and continuously even as the global economy experiences recessions. The game business industry is diverse. You can do business as a Game player, Game Master, Streamer, Game Tester, Game Reporter, Game Designer, Game Programmer, etc.

11. Video Content Creator

You can start your business by shooting videos, many people love watching videos for entertainment.

Shareable promotional video content needs to serve a diverse audience, including people who have never purchased your product. 

12. Online Cooking Class

To learn about a professional cooking class, you can quickly refer to reputable websites that teach and learn to cook. Why not create your own cooking classes? You can create a video course and add the written content like a recipe.

13. Psychological Counseling Services

Human psychology is a crucial factor that directly affects our lives. People always need to find a psychologist for mental treatment. Many people choose online psychological counseling services to connect with professionals. This service is increasing in popularity during the current pandemic era.

14. Online Translation

Translation plays a role in social life. You need to be fluent in the languages to be able to run this business.

15. Matchmaking Service

Now, many people have pursued their dating websites to find their partners, turning to coaches and matchmakers to help find the right partner. You can open an online matchmaking service to advise and support those who need to find a lover or get married.

16. Travel Blogger

Travel bloggers specialize in traveling, and they share their journeys and stories with a specific purpose.

To create a travel blog, you need:

17. Event Planner

Event Planners are people who plan events. You will explore, create the most creative strategies and ideas to help the event achieve its goals.

A good event planner can do all kinds of events with different budgets. It takes all of the resources in the industries to take advantage of and the ability to recognize how much factors will cost, do basic event calculations, and budget for the event.

18. YouTube Shopping Ads

YouTube Shopping ads allow businesses to promote specific products directly to YouTube videos. You can make ads on your videos to earn income or use them to spread keywords about your products.

19. Screencaster

Screencasting is a TechSmith solution for business or academic professionals who want to store, manage, and share online videos, photos, documents, or just about anything with just one Screencast account.

You can share video content about how to use other computer software or programs.

20. Sell Stock Photos 

Stock photos are professional images taken of places, landmarks, nature, events, etc. Those are bought and sold on a royalty-free basis and can be used and reused for commercial purposes.

You can provide stock photos that people want to buy for their content purpose.

21. Online Recruitment

Currently, some businesses need the same number of employees. You can start a recruitment service to find and contact employees through the online network.

22. Draw Comic Online 

In Vietnam, comic books are popular.

Some companies go in the direction of character development to the franchise. They accept long-term investment from script to drawing, printing, publishing.

23. Write a Car Review

Many car review channels (car review) provide information to users of knowledge, market information, or updates to customers about their favorite car model.

To evaluate a car most comprehensively, It requires the evaluator have knowledge and a high level of understanding.

24. Project Manager 

The Project Manager is a person who is manage in planning, implementing, monitoring, and controlling progress to divide the work reasonably, and complete the project.

To be a good Project Manager, you will need some skills:

– Project planning from conception to implementation

– Make a timeline diagram

– Budget allocation and management

– Communication

– Troubleshoot

25. Coder

Coders are people who write coding strings to program an application, an existing technology program.

And becoming a professional coder is not an easy path. You will need to have specialized knowledge in programming techniques and software to achieve the goal of becoming coders.

Conclusion 

Above are some suggestions and inexpensive profitable businesses in Vietnam. The import and export industry is currently the hottest in the current development stage. You can take our course to learn more about the import and export business. Through the above sharing, hopefully, you will have more direction for your business.

If you want to learn how to start your own export-import business online or offline, we have online courses and programs which will give you the best guide to start an international business from scratch. There are tools and resources which help you to grow and expand your business and get more customers and raise profitability.

We advise you to take courses and use the resources ad tools listed below: