Doing business in Hanoi

Hanoi has implemented strategies to navigate global economic challenges and domestic obstacles, maintaining its role as a key growth driver. In the first eight months of 2023, Hanoi saw the establishment of 21,100 new enterprises with VND208.8 trillion (US$8.6 billion) in registered capital, marking a 7% rise in the number of enterprises but a 6% drop in registered capital compared to the same period in 2022. Despite a 17% decline in businesses resuming operations, the startup landscape has not significantly improved.

The capital city’s gross regional domestic product (GRDP) grew by 5.5% in the first quarter of 2023. This growth included expansions of 5.84% in services, 4.77% in industry and construction, and 3.76% in agro-fishery-forestry, along with a 4.94% increase in product tax.

The process of registering a company in Hanoi is structured to facilitate business creation and ensure legal compliance. Key steps include:

1. Obtaining a Business Registration Certificate: Submit an application form, company charter, and details of shareholders and capital contribution to the Department of Planning and Investment. Learn more about our Company registration Services.

2. Choosing a Business Type: Decide on the type of business entity, such as a limited liability company (LLC), joint-stock company (JSC), or partnership.

3. Registering the Company Name: Ensure the chosen name complies with legal regulations and is not already in use.

4. Receiving the Certificate: Upon approval, receive the business registration certificate.

Businesses in Hanoi must adhere to various compliance requirements to maintain their legal standing:

Businesses in Hanoi are required to follow the Vietnamese Accounting Standards (VAS), ensuring transparency and reliability in financial reporting. Key aspects of VAS include:

Financial Statements: Prepare and present financial statements in accordance with VAS.

Accounting Records: Maintain detailed records of all financial transactions.

Auditing: Ensure annual audits are conducted by certified auditors.

Our comprehensive accounting services include bookkeeping, financial reporting, and tax filing. Our team ensures your business meets all Vietnamese accounting standards and tax obligations.

The taxation system in Hanoi includes several types of taxes that businesses must comply with:

1. Corporate Income Tax (CIT): Generally at 20%.

2. Value-Added Tax (VAT): Rates vary depending on goods and services.

3. *Personal Income Tax (PIT): Applies to employees based on their income.

4. Import-Export Duties: Applicable to goods entering or leaving the country.

Tax registrations and periodic filings are mandatory. Detailed information can be found on the General Department of Taxation.

The Vietnamese government actively supports businesses with various incentives aimed at attracting foreign investment. These incentives include tax holidays, reduced tax rates, and exemptions from land rentals. There is a particular emphasis on investing in high-tech industries, agriculture, and environmentally friendly sectors, as promoted by the Vietnam Chamber of Commerce and Industry. (Vietnam Chamber of Commerce and Industry).

Intellectual Property: Protecting intellectual property (IP) is crucial in Vietnam, a member of the World Intellectual Property Organization (WIPO). The country has robust laws to safeguard trademarks, patents, and copyrights. Our customizable Business Contracts in English and Vietnamese ensure that your intellectual property and other interests are legally protected.

Labor Laws: Vietnam’s labor laws govern Employment Contracts, working hours, and employee benefits. Employers must adhere to the Labor Code, which sets a maximum of 48 working hours per week and outlines minimum wage requirements. The Ministry of Labour, Invalids and Social Affairs oversees compliance with these regulations.

Environmental Regulations: Businesses operating in Hanoi must comply with stringent environmental protection laws, covering waste management and pollution control. The government enforces these regulations rigorously to promote sustainable development and protect the environment for future generations.

For comprehensive guidance on navigating these regulations and leveraging government incentives for your business in Hanoi, explore our range of legal services tailored to meet your needs.

Hanoi’s strategic location in Northern Vietnam positions it as a vital hub for regional connectivity and trade. The city benefits from robust infrastructure, including:

Hanoi boasts a dynamic workforce with a focus on education and skill development. The city hosts numerous universities and vocational institutions, providing a continuous supply of qualified professionals. Urbanization trends indicate a growing consumer market, offering lucrative opportunities for retail and service sectors.

Navigating Vietnam’s visa and immigration regulations is crucial for businesses employing expatriate staff in Hanoi. We offer comprehensive assistance with business visas, work permits, and compliance, ensuring your international workforce operates legally and efficiently in Vietnam’s capital city.

For businesses and individuals seeking to establish a long-term presence, purchasing property in Hanoi presents a promising opportunity. The city has witnessed a steady appreciation in property prices, making it an attractive investment option. Foreigners can own property in Vietnam under specific conditions, necessitating thorough understanding of the legal requirements. Discover more about our property acquisition services to facilitate a smooth and compliant purchase process.

Investing in rental properties in Hanoi offers lucrative prospects, particularly in central districts such as Hoan Kiem and Ba Dinh. The high demand for commercial spaces and residential units can yield substantial returns for landlords. By strategically investing in well-located properties, investors can capitalize on Hanoi’s vibrant economy and the growing influx of businesses and expatriates. Our services are tailored to guide you through the market intricacies, ensuring your investment is profitable and adheres to local regulations. Explore our comprehensive documents for renting out residential and commercial properties to optimize your investment potential.

Investors in Hanoi are poised to benefit from a wealth of government incentives, including tax breaks, land lease preferences, and streamlined administrative procedures. This vibrant capital city is a hub for foreign direct investment (FDI), actively attracting businesses in sectors such as technology, manufacturing, finance, and tourism through its preferential policies.

Entering the Hanoi market offers exciting opportunities but requires meticulous planning and a keen understanding of local market dynamics. Conducting thorough market research, forging strong local partnerships, and ensuring strict compliance with regulatory requirements are essential steps. By tailoring your products and services to meet the unique demands and preferences of Hanoi’s dynamic market, you can significantly boost your market penetration and competitiveness.

Hanoi, as the vibrant capital of Vietnam, continues to chart a dynamic course for its future amidst global economic shifts and domestic challenges. Looking ahead, the city’s economic outlook remains promising with strategic initiatives aimed at bolstering growth across various sectors.

GRDP Growth: Hanoi has set ambitious targets for its Gross Regional Domestic Product (GRDP) growth, aiming to sustain and enhance the momentum achieved in recent years. According to projections from the municipal Statistics Office, the city anticipates robust growth rates across quarters, building on a solid foundation of diversified economic activities.

Hanoi aims to diversify and strengthen its economic base through targeted growth strategies in key sectors.

With its strategic location, vibrant economy, and favorable government policies, Hanoi stands as a prime investment destination in Vietnam. Understanding the local economic dynamics, legal framework, and regulatory landscape is crucial for navigating the business environment effectively. With our expert support and guidance, you can seize opportunities and successfully establish and expand your business in Hanoi. Contact us today to discover how we can assist you in starting and growing your ventures in this dynamic and promising city.