1. Why Vietnam Is the Next Stop for China’s Clothing Giants
Vietnam is emerging as one of the most dynamic consumer markets in Southeast Asia, especially in the fashion and retail sectors. The middle class is growing rapidly, average incomes are rising, and young people’s shopping trends are gradually shifting towards brands with unique styles and reasonable prices.
For foreign investors and Chinese fashion brands, obtaining a business license in Vietnam is the first important step to legally enter this fast-growing market. With proper licensing and strategic market entry, businesses can take full advantage of Vietnam’s expanding retail opportunities and rising consumer demand.
Vietnamese consumers, especially Gen Z and Millennials, prefer modern fashion that quickly updates global trends while maintaining high practicality. This creates a great advantage for Chinese businesses, which have the ability to produce quickly, flexibly, and at competitive costs.
Not only does Vietnam have great purchasing power, it is also a politically stable market, transparent in investment, and benefits from many free trade agreements (CPTPP, RCEP, EVFTA). In addition, obtaining a business license in Vietnam for fashion or retail activities has become increasingly streamlined, making importing, distributing, or opening Chinese fashion brands in Vietnam easier and more compliant than ever. business license in vietnam
2. Choosing the Right Market Entry Strategy
Chinese businesses can choose one of three popular models when expanding into the Vietnamese market:
- Establishing a 100% foreign-owned company (WFOE): Suitable for brands that want to control the entire import-distribution-retail process. This model allows for opening physical stores or doing business online after obtaining the required business license in Vietnam.
- Cooperating with local distributors: helps save costs, quickly access the market, and take advantage of the existing retail network.
- Joint Venture: Cooperating with Vietnamese businesses to combine local knowledge with goods sources and management capacity from China.
Each form has its own advantages in terms of control level, cost and risk, so it is necessary to consult carefully before choosing.
3. Beyond Paperwork: Setting the Foundation for Operations
To open a business in Vietnam, businesses need to carry out some important legal procedures to have business license in Vietnam:
Investment Registration Certificate (IRC) if there is foreign capital. IRC is the first license allowing the investor to implement the project in Vietnam.
The required documents usually include:
- Application for investment project implementation and Project proposal: stating the objectives, scale, location, investment capital, progress.
- Proof of the investor’s financial capacity: bank statement, credit contract or collateral.
- Legal documents of the investor:
- Individual: Notarized passport, consular legalization.
- Organization: Business registration certificate or equivalent document, consular legalization.
- Project location: lease contract or land/office use rights certificate.
After the IRC is granted (or for 100% domestic-owned enterprises), the investor applies for an ERC – an official license for the enterprise to operate, and also the tax code of the company.
Enterprise Registration Certificate (ERC) at the Department of Planning & Investment. The ERC dossier usually includes:
- Application for enterprise registration.
- Company Charter: stipulates the organizational structure, powers of members/shareholders, capital ratio and management method.
- List of members/shareholders and legal representatives: clearly state information, ownership ratio, voting rights.
- Appointment decision and authorization letter (if any).
- Capital contribution plan & financial evidence: bank statement or credit contract (especially important for large capital projects).
Register appropriate business lines, for example:
- Wholesale and retail of garments and fashion accessories.
- Import and export of fashion goods.
- E-commerce business (if selling online).
The good news is that the fashion trade and distribution industry does not require any special sub-licenses, so the establishment procedure is quite simple and the processing time is fast.
After obtaining the business license in Vietnam, the business needs to register a tax code, open a bank account, issue electronic invoices and declare taxes periodically to operate legally.
CONSULT ON BUSINESS LICENSE IN VIETNAM
4. Workforce and Culture Integration
The Vietnamese market is diverse and can be divided into 3 key areas:
- Ho Chi Minh City: a vibrant commercial center, suitable for young, dynamic fashion.
- Hanoi: a traditional market, favoring brands with reliability and elegant designs.
- Da Nang, Can Tho: emerging markets, low cost, easy to test retail models.
In addition to choosing a strategic business location, businesses need to:
- Cooperate with logistics units to optimize shipping costs from China to Vietnam.
- Build a localized marketing strategy, combining platforms such as TikTok, Shopee, Lazada and Facebook, which currently account for the majority of online fashion sales channels in Vietnam.
- Understand Vietnamese fashion tastes: prioritize light, airy, easy-to-match and highly applicable products.
5. Local Compliance and Ethical Manufacturing
When operating in Vietnam, recruiting and managing local human resources is an important factor.
Chinese enterprises need to clearly understand the regulations on labor contracts, social insurance, and personal income tax (PIT) to avoid violations.
In addition, cultural differences should also be noted:
- Vietnamese people value respect, gentleness, and collaboration in the working environment.
- A team of dedicated employees, paid on time and transparently will help operations run smoothly, especially in the retail and customer care sectors.
Many foreign enterprises choose to outsource payroll and HR services to ensure compliance, optimize costs, and reduce administrative risks. In addition, working with a professional consulting partner also helps businesses handle legal procedures such as applying for a business license in Vietnam, registering employees, and setting up a compliant payroll system, ensuring smooth and lawful operations from the start.
6. How Vina TPT Helps You Scale Smoothly
Vina TPT Company Registration is a consulting and implementation unit for comprehensive services for foreign investors in Vietnam, especially Chinese enterprises in the fields of fashion, trade and light manufacturing.
We provide:
- Investment consulting & legal structure according to the desired business model.
- Business registration services (ERC, IRC), opening bank accounts, tax codes and electronic invoices.
- Accounting, tax, payroll, periodic compliance management, ensuring transparent and legal operations.
- Bilingual support in English – Vietnamese, helping businesses easily exchange and process documents.
With a team of experts with more than 2015 years of experience in the fields of foreign investment, finance and law, Vina TPT has accompanied hundreds of Chinese FDI companies to successfully expand in Vietnam – from establishment to stable operation.
7. From Setup to Growth: Building a Sustainable Clothing Brand in Vietnam
Vietnam is not only a “production hub” but also a booming consumer market with long-term potential.
Chinese businesses can take advantage of this market to build their brands, develop distribution channels, and expand into Southeast Asia.
With a deep understanding of Vietnam’s legal framework, tax regulations, and consumer market, Vina TPT helps you take every step with confidence – from setting up a legal entity and applying for business licenses in Vietnam, to managing finances and ensuring smooth operations.
Want to bring a Chinese fashion brand to Vietnam quickly and legally?
