Essential Considerations When Entering the Vietnamese Market

01 - The Purpose of Entering the Vietnamese Market
The “China Plus One” strategy has fueled growing interest among Japanese companies in entering Vietnam, driven by low labor costs and rising market value as the middle class expands. Large corporations typically conduct one to two years of market research before entering, whereas small and medium-sized enterprises more often make a quick decision on the strength of a personal connection — an approach that tends to invite greater risk.

02 - Selecting the Business Purpose in Vietnam
This requires confirming that the intended activity does not fall within a prohibited investment or business sector; for sectors not yet opened to foreign investment, a case-by-case application and approval process applies; and for conditional investment sectors, the applicable conditions must be satisfied.

03 - Choosing a Market-Entry Structure and Business Scheme
Options include direct investment (wholly-owned or joint venture), indirect investment (M&A), a BCC (Business Cooperation Contract), and PPP investment. The design of the broader business scheme should be considered in parallel.

04 - Preparing the Business Plan
A business plan covering at least the first three years following incorporation is required, addressing matters such as the amount of capital, planned fundraising, projected revenue, costs and profit, and expected headcount.

05 - Choosing the Business Location (Company Address, Etc.)
Procedures, regulations, and available incentives differ depending on the location chosen. This is especially important for businesses that require land-use rights.

06 - Other Matters to Consider When Entering the Market
These include whether any specific licenses are required, HR and labor matters (work permits, internal labor regulations, handling of labor disputes), and brand protection (trademark registration, measures against counterfeit goods).