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Regulations and requirements for foreign businesses when operating warehouses in Vietnam

August 23, 2024 06:54 AM

When foreign enterprises decide to operate a warehouse in Vietnam, they must strictly comply with various and complex legal regulations. Understanding these requirements not only ensures legal business operations but also supports sustainable and efficient business development. Strict requirements for enterprises operating a warehouse in vietnam 1. Business registration Foreign enterprises expanding their operations in […]

When foreign enterprises decide to operate a warehouse in Vietnam, they must strictly comply with various and complex legal regulations. Understanding these requirements not only ensures legal business operations but also supports sustainable and efficient business development.

Strict requirements for enterprises operating a warehouse in vietnam

Strict requirements for enterprises operating a warehouse in vietnam

1. Business registration

Foreign enterprises expanding their operations in Vietnam need to register the establishment of a company or representative office through the Foreign Investment Agency, an essential step to start doing business.

The registration process includes preparing and submitting a complete set of necessary documents, such as a business registration application, a copy of the legal representative’s passport, and other relevant documents.

2. Investment License

An investment license is a compulsory requirement for all foreign investor projects, including warehouse construction and operation projects in Vietnam. To obtain this license, enterprises must draft a detailed and comprehensive investment dossier, including a business plan, financial analysis, and related legal documents.

This dossier must be submitted to the relevant authorities, such as the Foreign Investment Agency or the local Department of Planning and Investment, for review and approval. During the evaluation process, the authorities will consider the project’s feasibility, its contribution to the local economy, and compliance with Vietnam’s legal regulations.

3. Location of warehouse in vietnam

When selecting a location for constructing and operating a warehouse in Vietnam, foreign enterprises must strictly comply with regulations on urban planning and safety. Additionally, the warehouse location must comply with current regulations regarding safe distances from residential areas, schools, and hospitals to avoid impacting daily life and other social activities. For example, warehouses storing hazardous chemicals must be located far from residential areas to mitigate health and safety risks.

4. Customs Regulations

Foreign enterprises operating a warehouse in Vietnam must strictly comply with Vietnamese customs regulations. This process includes declaring, inspecting, and handling imported and exported goods:

Goods declaration: Enterprises must accurately declare all information related to imported and exported goods, including value, quantity, and classification according to customs codes. Accurate declarations help determine the correct taxes and fees, thereby minimizing potential legal issues.

Foreign enterprises must accurately declare all information

Foreign enterprises must accurately declare all information

Inspection and supervision: Customs authorities have the right to inspect goods to ensure compliance with safety, environmental, and quality regulations. Enterprises need to be prepared for these inspections by maintaining complete and up-to-date records of goods.

5. Labor Regulations

Vietnam enforces strict labor regulations to protect workers’ rights, such as:

Minimum wage: Vietnam has regulations on the minimum wage, which are based on region and industry. Enterprises must regularly update this information to ensure that the wages paid to employees are appropriate and fair, thereby avoiding legal violations.

Vietnam comply strict labor regulations to protect workers' rights

Vietnam comply strict labor regulations to protect workers’ rights

Working conditions: Regulations on working conditions include working hours, rest periods, and labor safety conditions. Enterprises must create a safe working environment that does not harm the physical or mental health of workers.

Employee rights: Vietnam emphasizes protecting workers’ rights, including the right to insurance, leave benefits, sick leave, and other benefits…

6. Environmental Regulations

Vietnam enforces strict environmental regulations not only for foreign enterprises but also for domestic businesses to ensure sustainable development and environmental protection.

Waste management: Enterprises need to have an effective waste management system, including the classification, collection, and treatment of waste according to standards.

Pollution reduction : Implement technological measures to minimize the emission of pollutants into the air, water, and soil.

Compliance with discharge standards: Enterprises must ensure that all discharge activities comply with the environmental standards set by the Vietnamese government. This includes controlling emission levels, wastewater quality, and noise standards.0

Biodiversity protection: Areas with high ecological value or biodiversity must be protected. Foreign enterprises should avoid developing or expanding into these areas and must adhere to biodiversity protection guidelines.

Environmental impact assessment: For large projects or those that could significantly impact the environment, enterprises need to conduct an Environmental Impact Assessment (EIA) and obtain approval from the relevant authorities before proceeding with the project.

7. Tax Regulations

When operating in Vietnam, foreign enterprises need to comply with local tax regulations to ensure legal compliance and optimize economic benefits. The main taxes that enterprises need to be concerned with include corporate income tax, value-added tax, and import tax. Each type of tax has its own regulations and requirements.

8. Periodic Activity Reporting

Foreign enterprises operating a warehouse in Vietnam must strictly adhere to periodic financial and business activity reporting requirements as mandated by Vietnamese law.

Strict compliance with periodic reporting requirements is crucial, not only to ensure legal adherence but also to support effective business management. Timely and accurate reporting helps enterprises maintain transparency, build trust with regulatory agencies, partners, and customers, and contribute to the sustainable development of the business in the Vietnamese market.

9. Reliable Warehouse Leasing in Vietnam – Gaw NP Industrial

Gaw NP Industrial is one of the leading enterprises in the industrial real estate development in Vietnam, well-known for its warehouse leasing projects designed to international standards. For foreign enterprises seeking storage space in Vietnam, Gaw NP Industrial not only provides efficient storage solutions but also ensures convenience in terms of transportation and logistics, enhancing business operation efficiently.

Some notable warehouse leasing products offered by Gaw NP Industrial include GNP Nam Dinh Vu in Hai Phong and GNP Dong Van 3 located in Ha Nam province. The warehouses designed to international standards are the best choice for foreign enterprises looking to lease storage space here.

Gaw NP Industrial provides the international standard warehouse in Vietnam

Gaw NP Industrial provides the international standard warehouse in Vietnam

GNP Dong Van 3 in Ha Nam:

Strategic location and transportation connectivity: The warehouse at GNP Dong Van 3 Industrial Center is strategically located near National Highway 1A and the Cau Gie – Ninh Binh Expressway, offering significant benefits in transportation and market access. Specifically, the warehouse is approximately 60 minutes from Hanoi, 80 minutes to Noi Bai International Airport, and 120 minutes to Hai Phong port, facilitating import-export and goods distribution activities.

GNP Dong Van 3 offers diverse connectivity for convenient transportation

GNP Dong Van 3 offers diverse connectivity for convenient transportation

Amenities and infrastructure: Dong Van 3 provides a variety of warehouse facilities, such as column-free designs that optimize usable space and can be easily configured to meet diverse customer needs. The warehouses are equipped with modern fire protection systems (KPS) and have received the EDGE green building certification, ensuring a safe working environment and energy efficiency.

Warehouse details:

  • Warehouse height: The warehouse has a height of 10,5 meters, suitable for various types of operations from simple storage to heavy industrial storage.
  • Floor load capacity: The reinforced concrete floor has a load capacity of 3 tons/m², meeting the needs of businesses for storage.
  • Other facilities: Spacious internal roads, 24/7 security system, ample parking area, and additional amenities such as office spaces and a canteen for employees.

The warehouses at GNP Dong Van 3 not only provide efficient storage space but also ensure high standards of safety and environmental protection, making them an ideal choice for businesses needing warehouses in Northern Vietnam.

GNP Nam Dinh Vu in Hai Phong

The warehouse at GNP Nam Dinh Vu Industrial Center is strategically located in the Nam Dinh Vu Industrial Park, within the center of the Dinh Vu – Cat Hai Economic Zone, Hai Phong. This prime location offers convenient transportation connections to major seaports such as Hai Phong Port and Lach Huyen Port, as well as Cat Bi International Airport, creating ideal conditions for import-export and logistics activities.

GNP Nam Dinh Vu holds a strategically important location near major seaports

GNP Nam Dinh Vu holds a strategically important location near major seaports

Amenities and infrastructure: GNP Nam Dinh Vu offers extensive warehouse rental space along with modern amenities and infrastructure. The warehouses are designed without columns, optimizing space and easily adapting to various production and storage needs. The facilities include an advanced fire protection system, 24/7 security, and amenities such as hydraulic dock levelers and spacious internal roads that allow large truck circulation.

Warehouse details:

  • Warehouse height: The ceiling height is up to 9.5 meters, suitable for storage.
  • Floor load capacity: The floor has a load capacity of up to 3 tons/m², meeting the demands of heavy-duty businesses.
  • Design and structure: The warehouse in Vietnam is usually designed without columns with a distance up to 25m, ideal for using large machinery and automation.

The warehouses at GNP Nam Dinh Vu, with a minimum rental area of 4,896m², not only provide efficient storage and production space but also meet high environmental and labor safety standards.

With tax incentives and modern amenities, this is an ideal choice for businesses seeking warehouse space in Vietnam’s new industrial hub.

In conclusion, understanding and complying with Vietnam’s regulations and requirements is an essential step for foreign enterprises operating warehouses in the country. From business registration, investment licensing, to adhering to customs, labor, environmental, and tax regulations, each aspect plays a crucial role in ensuring smooth and efficient warehouse in Vietnam.

See more:

 10 crucial criteria to assess when selecting industrial warehouse space in Vietnam

Vietnam’s warehouse rental market: Supply expands to meet rising demand

Warehouse for lease in Vietnam | Warehouse for rent in Vietnam | Factory for lease in Vietnam | Factory for rent in Vietnam

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