Vietnam’s growing demand for raw meat, coupled with favorable regulations and low competition, makes it an attractive market for foreign investors looking to establish an importation and distribution business. However, navigating the infrastructure limitations, cultural differences, and business establishment requirements can be a daunting task.

In this blog post, we provide comprehensive information for foreign investors on the conditions, requirements, and steps to establish a successful raw meat import and distribution business in Vietnam. By following these steps, investors can make informed decisions, avoid potential pitfalls, and capitalize on the significant opportunities offered by Vietnam’s raw meat importation and distribution market.

STEPS TO IMPORT AND DISTRIBUTE RAW MEAT INTO VIETNAM?

To import raw meat into Vietnam, there are 3 steps need to be followed:

Step 1: Establish a trading company

Step 2: Import products into Vietnam

Step 3: distribute your imported products to the market

STEP 1: ESTABLISH A 100% FOREIGN-OWNED TRADING COMPANY

According to Vietnamese law, registering your company with the trading function is mandatory if you plan on importing and conducting wholesale operations. This allows you to sell to other businesses (B2B) by default. However, if you wish to sell directly to consumers, you will need to obtain a Retail License which we will discuss further.

To establish a business entity (company) in Vietnam, you must obtain two certificates: the Business Registration Certificate (BRC) and the Investment Registration Certificate (IRC). These certificates are issued by the Department of Planning and Investment and the entire process typically takes around 4-6 weeks or 30-45 days to complete.

The good news is that the registration process is fairly straightforward, and you only need to fulfill the standard requirements. These requirements include:

A Business Address:  It is essential to note that every business in the country must have a registered business address. During the setup phase, you have the option to choose between a virtual or physical address.

It is important to note that using a residential address as your business address is not permitted by Vietnamese law. Therefore, it is crucial to give caution when someone offers to use their home address to register your business.

A Legal Representative: In order to initiate the process of company registration, it is noted that you need to have a designated legal representative. This individual may either be a Vietnamese resident or a foreign national, including yourself, but they must have a permanent address that satisfies residency requirements.

Capital Investment: While there is no fixed amount mandated by law, it is advisable to register with a reasonable sum, particularly if your business operates in the trading industry. This sector often demands significant capital for activities such as importing, storing goods, and daily operations. Hence, it is important to stage a fair amount to ensure that your business has the necessary funds to carry out these operations smoothly.

After obtaining 2 certificates there are a few more steps to complete the registration process which include:

• Make the company stamp/seal
• Open your company bank account
• Inject committed capital
• Tax registration

Read more about 10 steps to have a company opened and ready to run in Vietnam

STEP 2: HOW TO IMPORT RAW MEATS INTO VIETNAM

After successfully registering your company, the following step is importing meats into Vietnam. This procedure would follow the below steps:

LOOK FOR ELIGIBLE RAW MEAT EXPORTERS

To successfully import raw meat into Vietnam, the initial step is to identify whether your preferred exporters are authorized to import into the country. As per Vietnamese regulations, the importation of raw meat requires that the exporters originate from one of the 24 countries granted permission to export meat into Vietnam. Each country has specific companies that are permitted to export meat into Vietnam.

In the event that your desired exporters are not on the approved list, it is possible to request permission from the Ministry of Agriculture and Rural Development for your exporters to be granted approval. However, this process may be time-consuming and carries the possibility of being denied. Thus, selecting exporters that are already on the list would be a more straightforward option.

DETERMINE THE HS CODE

To ensure a smooth import process, it’s essential to accurately define the HS code for your products. This code determines the import tax and is necessary for filling out the Customs Clearance form correctly. For raw meat products, the HS code is 0202. It’s crucial to pay close attention to these details to avoid any potential delays or penalties.

OBTAIN THE CERTIFICATE OF FOOD SAFETY

For any business dealing with food and similar products, obtaining a Certificate of Food Safety is a crucial step in the import process. Each product requires its own certificate, so if you plan to import multiple products, you will need to obtain a separate certificate for each one. Thankfully, the process for acquiring each certificate is generally similar.

In practice, the certification process can take several months, and any discrepancies or issues with the submitted documentation can cause delays. Therefore, it is crucial to ensure that all necessary documents are complete, accurate, and submitted promptly to the relevant authorities. This is particularly important for companies and investors who want to expedite the certification process and get their products to the market as quickly as possible.

CUSTOMS PROCEDURE OF IMPORT RAW/FROZEN MEATS INTO VIETNAM

Once you have successfully obtained the Certificate of Food Safety, the next step is to begin the importation process. This involves submitting an application for importing and reserving goods. In addition to the standard documentation required for Customs Clearance, including the Invoice, Packing List, COO, Airways bill, and Bill of Lading, the Customs Office will also request the Certificate of Food Safety as obtained in the previous step. It’s also important to note that depending on the type of meat being imported, additional specific documentation may be required, so it’s recommended to seek the assistance of an experienced consulting firm to ensure all necessary documents are in order.

Assuming all the required documentation is provided, the customs clearance process typically takes two business days. However, on occasion, a shipment may be flagged for inspection by Customs, resulting in what’s known as a “Red Line” status. In these instances, the clearance process may be delayed by a few days while the shipment is inspected.

STEP 3 – HOW TO DO RAW MEAT DISTRIBUTION IN VIETNAM?

As previously stated, upon establishing a trading company, wholesale operations can be conducted right away. Nevertheless, to conduct retail operations, obtaining a Retail License from the Department of Industry and Trade is required.

While the standard processing time for the necessary documents is 10 business days, it’s important to note that this timeline may extend due to government officials requesting further clarification or additional documentation. In some cases, this could lead to a delay of 1-3 months. Hence, investors should take this into account when planning their timelines to avoid any potential disruptions to their business operations.

HOW CAN VNBG ASSIST YOU?

Incorporating a business in a foreign country can be a daunting task, especially when dealing with legal requirements, customs clearance procedures, and managing daily operations. This is where VNBG comes in to assist you every step of the way.

VNBG is a leading business consulting firm in Vietnam, providing end-to-end solutions for foreign investors interested in doing business in Vietnam. Our team of experts has extensive knowledge and experience in assisting clients with the incorporation process, obtaining necessary certificates, and ensuring a smooth customs clearance process.

In addition to incorporation services, VNBG also offers EOR (Employer of Record) services, which include recruiting staff, paying taxes and salary, delivering benefits, managing daily operations, and more. With VNBG as your partner, you can focus on growing your business while we handle administrative tasks.

At VNBG, we take pride in being a trusted partner for thousands of foreign investors in Vietnam. Our team is committed to providing high-quality services and ensuring that our client’s business operations run smoothly. So if you’re considering doing business in Vietnam, look no further than VNBG for all your business consulting needs.

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