Manufacturing is an essential part of a developing economy. And with more and more foreign investor start businesses in Viet Nam, it has become even more important to make early stage product development and production accessible locally.
Creating a manufacturing company is no easy task, it takes a lot of capital, expertise, and strategy to become successful – but it can be done. We talked and shared with Mr. Sebastian Tillen from http://qpackfareast.com/ , in the industry for some tips to get started on the right foot.
1. Research the location.
Regardless if you are looking for a manufacturer or setting up your own manufacturing unit, you need to do extensive research before you make a decision. Trade journals and fairs are good avenues to research and connect with manufacturers.
Research is for finding a good area to locate your factory is most important thing you need to do at first step. The factory should be located near the airport, seaport or technique employees… depends on your producing demands.
Renting factory inside Industrial Zones is an ideal solution. The Industrial Zone usually has sufficient legal documents, support transportation and has incentive of taxes.
2. Get the legal details sorted out.
Visit the local government websites and talk to people in the know about the kind of licenses and certifications required to set up is a tip. Once this is done, you can confidently go ahead with buying equipment and hiring employees for your business.
3. What products will you produce.
This will depend very much on who your target customers are. For example you might produce items such as food products, clothing, ceramics, toys or giftware for the consumer market. And in Viet Nam, depends on each products shall have legal provisions and conditions onto. Thus, you may need to find details of legal information on each kinds of products you want to produce.
As a foreign direct investment (FDI), basically you will need Investment Registration Certificate (IRC) and Enterprise Registration Certificate (ERC). Besides, sub-licenses are enforceable for manufacturing are fire protection license and report of environmental protection. Some kinds of products when manufacturing shall need more conditions or requirements. Such as agricultural products shall need approval certificate from Ministry of Agriculture, medical products needs the quality certificate from Ministry of Health, etc…
5. Registered capital
There is minimum capital required. However the charter capital is going to be determined by your initial costs. And in the beginning your costs will be calculated on the investment. Means you can start with a basic capital for initial cost and increase the capital then.
6. Buy an existing business
You might decide to buy an existing factory based business rather than start your own venture from scratch. Buying a going concern can mean that the products, customers, regular sales, staff, premises and equipment are already in place.
But buying a business can be a hazardous, expensive process unless you have the right skills and experience on your team, including legal and financial know-how. Establish the genuine trading and financial position, so that the price you pay for the business is not too high.
7. Meet the Experts Advancing for Manufacturing in Viet Nam
All issues of looking for a good location, licenses, labor, tax, finance and so on, asking the assistance from the experts might save your time the most: http://www.viclaw.com.vn/en
By Minh Thu Tran, Director at VICLAW