Vietnam’s e-commerce industry is flourishing, unlocking new business opportunities, and drawing domestic & foreign investors’ attention. In the last five years, the eCommerce sector of Vietnam garnered investments of approx. US$1 billion, achieving the record high in 2019.
This Article Discusses Why and How to Start an Ecommerce Business in Vietnam in 2021.
Why Start an Ecommerce Business in Vietnam in 2021?
When it comes to selling your products online in Vietnam, there are several compelling reasons behind it:-
- Vietnam is the second largest e-commerce market in Southeast Asia.
- Approx 60 million Internet users with the majority of them under 30-years old.
- Vietnam has around 25 million smartphone users, causing a tremendous boom in online purchases in recent years.
- According to the latest consumer survey, 30% of Vietnamese love to shop online.
Ecommerce Business Models Available in Vietnam
Before you dive into the world of eCommerce, here are the popular eCommerce business types in Vietnam:-
Online Retailers: Sell goods directly to the customers online, via an e-store or a dedicated shopping App. Generally, those who are already running a physical outlet opt to become an online retailer to increase their sales by expanding their reach.
Online marketplace: It allows both sellers (either belonging to one category or multi categories)and buyers connect.
The Vietnam e-commerce market is flooded with many companies, including the local players such as Lazada, Shopee, Tiki, and Sendo, along with international giants like Alibaba, Amazon, and eBay.
Online Classified: These are similar to online marketplaces, except the online classified doesn’t accept payments directly between the buyer and the seller.
Foreign Investors in the Vietnam E-Commerce Sector
Before you know the requirements for selling stuff online, you must pay attention to the following:-
If you have registered for an eCommerce company, then to directly accept payments, you require an Intermediary Payment license. If not, you can associate yourself with an institution or entity with this license, such as Zalo Pay, Banks, and Momo.
To sell directly to your customers, a trading license is required to obtain in less than six weeks.
Here, we spell out the documents required for website registration:-
- A notarized copy of the Enterprise Registration Certificate (ERC)
- Statute of management of your eCommerce website.
- General trading conditions.
- What is your plan to provide services?
- Forms of service contract.
After preparing all the documents as mentioned above, you’re required to go through the following procedure:-
- You must prepare information about the designated eCommerce website, and ensure that it adheres to Vietnam laws.
- Book a consultation with a Vietnam company registration expert, and they’ll review all the website information and documents.
- Your incorporation agent will act on your behalf to submit all the documents to the different departments; this can certainly ease off the burden from your shoulder.
- Upon approval, you’ll receive the registration certificate provided by the Ministry of Industry and Trade.
In case, if you want to be an online retailer, then the following documents are needed:-
- A notarized copy of the Enterprise Registration Certificate (ERC).
- Document of your online selling policy.
Being a foreign investor, you are probably not familiar with the Vietnam laws and regulations. Therefore, you’ll find business incorporation in Vietnam challenging; this is where a local business consultant can be a big help, assisting you with everything, right on guiding you with the preparation of the documents to filling your permit application on your behalf.
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