How to Grow a Business Online in Vietnam

The Internet has created many opportunities for businesses, allowing them to grow and prosper. One of these is online marketplaces, also known as e-commerce markets, which provide physical stores with an online presence, enabling them to sell their products to people all over the world.

E-commerce has grown leaps and bounds in recent years, and as a result, so has the range of business models available to online entrepreneurs. Some specialize in retail, buying and selling products directly from brands or producers. Others take a more agency-led approach, acting as a middleman between businesses and consumers, enabling them to earn a commission.

No matter which model you choose, setting up an online business in Vietnam can be both exciting and profitable. If you’re thinking about trying your hand at e-commerce, then read on as we delve into the details.

The Basics

Vietnam is a country in south-east Asia. It lies nearly in the middle of the region, bordered by China to the north, Cambodia to the east, and Laos and Thailand to the south. Roughly 84.5 million people live in Vietnam, making it the 23rd most populated country in the world. More than half the population is under the age of 30, and over 1.7 million people are online users.

The economy of Vietnam is classified as being one of the ‘emerging markets’. It has a developing middle class, but still lacks the infrastructure and expertise needed to support a truly globalized business. Vietnam has a growing number of English-speaking individuals, as well as an increasing number of digital nomads, who work remotely for American and European companies.

Vietnam’s E-commerce Scene

e-commerce, or online marketplaces, are increasingly popular in Vietnam. Thanks to improvements in connectivity and the falling cost of web hosting, even the smallest companies can have a genuine online presence. This is useful for businesses of all sizes, as it provides them with a digital storefront, online catalog, and a means of connecting with previous and potential customers.

The most well-known e-commerce marketplace in Vietnam is Shopbop, which was launched in 2006 and now has over 7 million monthly active users. If you’re looking to expand your e-commerce presence, then Vietnam is well worth a look, thanks to its young, digital-savvy population and supportive economic ecosystem.

Vietnam’s E-commerce Regulations

Before you set up shop in Vietnam, it’s important to understand the legal requirements and relevant laws. The country is part of the region known as the ‘Free Trade Zone’, and as a result, a lot of freedom and flexibility is granted to foreign entrepreneurs operating within the zone. This is useful if you’re looking to do business there, but also poses certain risks, as you must adhere to local laws and regulations.

One particular area that you need to address is taxation. In most countries, businesses are subject to income tax. However, in the Free Trade Zone, there is no income tax. The primary tax that you will have to pay is a sales tax of about 23%.

An Opportunity For Travelers

If you’re looking for a new place to travel to, then consider Vietnam. Not only is it a popular vacation spot for tourists from all over the world, but it also provides a genuinely unique shopping experience, full of exciting discoveries and luxury goods. If you’re an online business traveler, then Vietnam is a destination worth visiting. More and more people are gaining the courage to travel abroad, and Vietnam provides them with the opportunity to travel to a new country while still being able to buy luxury goods. Some might even say that it’s the best of both worlds!

Getting started in Vietnam isn’t as difficult as you would think. There is an abundance of documentation on the legal side of operating a business. The local business community is also extremely welcoming, and as a result, there are plenty of resources available to help you get set up. If you’re looking to make a profit in Vietnam, then do consider the country’s young population and expanding economy, which offers plenty of opportunities for American businesses looking to do business there.