Setup a Call Center in Vietnam - Challenges and Solutions

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Fully guide to open a new Call center in Vietnam

In the context of global integration, call center service, which provides customer care over the phone to support and advise business customers 24 hours a day, has emerged as a potential service in Vietnam seven days a week.

The company must register the business line “Call-related service activities” under industry code 8220 in VSIC to operate call center services. This industry code contains two directions of the service.

Outbound calls: are a simple way to sell or market goods or services to potential customers, conduct market research or polls, and perform other similar activities for customers.
Inbound calls: answering customer calls through agents, automatic call allocation, automatic call transfer, interactive answering system, or simple methods for receiving contracts, providing information products, and receiving customer feedback;

Under Vietnamese law, call center service – customer care is an unrestricted business line for local Vietnamese. However, because this is not included in Vietnam’s WTO commitments, a foreign-invested enterprise/foreign investor seeking to register for business in Call Center Service operations must obtain approval from multiple authorities. It means that success is not guaranteed and that the timeline may be much longer than in regular cases (Some of the Japanese companies may be exempted due to the VJEPA).

Conditions to set up a Call Center service business

1. Investor eligibility

Individuals or foreign corporations can invest in Vietnam to establish call center service companies. Regulations do not restrict investors’ status as individuals or legal entities.

2. Investment capital

When foreign investors register to establish a call center business, the law does not specify a minimum capital (legal capital). On the other hand, foreign investors must determine the general investment limit conditions for all fields and industries expected to operate, as well as specific financial plans to ensure the feasibility of the implementation. Avoid registering excessive (or too low) investment capital, which will result in time-consuming adjustments.

Furthermore, investment capital and charter capital contribution must adhere to the registered deadline shown on the Investment Registration Certificate, the company’s charter, and current law.

3. Business address

The head office is the enterprise’s point of contact, transaction, and operation. Foreign investors should select a lessor who has sufficient documentation to prove ownership or the right to lease or sublease the property; sites in dispute should be avoided. The company’s headquarters cannot be in an apartment building.

4. Resident legal representative

An enterprise’s legal representative is an individual who represents the enterprise to exercise the rights and obligations arising from the enterprise’s transaction, represents the enterprise as the claimant for the settlement of civil matters, plaintiffs, defendants, persons with related interests and obligations before arbitration, courts, and other rights and obligations following the law.

The company must ensure that at least one legal representative is always present in Vietnam. If the company has only one legal representative, that person must reside in Vietnam. If he has to leave Vietnam for more than 30 days, he must authorize (in writing) another individual residing in Vietnam to perform the legal representative’s rights and obligations.

Timeline

Due to the lengthy process of obtaining approval from multiple authorities for non-committed business lines, the timeline for establishing a company can take several months. The fundamental steps will be the same as our standard 10 steps for fully establishing a company.

Alternatives (Solutions)

Alternatively, many foreign companies may not want to set up a call center in Vietnam right from the beginning, but instead choose a close-enough business such as telemarketing, telesales, market research, and so on. These business lines are less difficult to register. However, it also implies that the company must adhere to the registered business and ensure that its documents (contracts, invoices) align with these registered businesses.

Another option, companies that do not want to open their own entity in Vietnam themselves (due to regulatory issues), can consider using an Employer of Record in Vietnam to help you recruit and manage the team in Vietnam on your behalf. EOR service is a popular concept that has made remote hiring more convenient. However, even local businesses in Vietnam must also register with a proper business line in order to recruit staff for a Call Center. Make sure you know your EOR service provider in Vietnam obtains the business line 8220 in their license. Without this, their claimed Call Center service outsourcing is considered illegal.

Contact VNBG if you want to establish your Call center in Vietnam or if you are interested in our EOR service.