What can go wrong after starting a business in Vietnam

Without a doubt, it would be a mistake to think that you can do business in Vietnam in the same way as you would back home. Registering a company in Vietnam and starting a business as a foreign entrepreneur is absolutely challenging – it is either total success or complete failure with no middle ground. Here’s why Vietnam forces you to adapt or fail.

The silent legal traps that hit after registering a company in Vietnam

We thought we were done after registering our company in Vietnam. Tax code? Company stamp? Done. Local accountant? Hired. Then three months in, we got slapped with a penalty for failing to declare social insurance. When starting a business in Vietnam, don’t rely on one-off consultants who disappear after the paperwork clears. A mistake we learned the hard way.

Goodbye common sense, hello bureaucracy

I had my Vietnamese company registered. I was the foreign owner. But when I applied for a temporary residence card and work permit, the labor department rejected it. Why? Because I was technically a legal rep without salary. No salary meant no basis for a work permit. And without that, I wasn’t allowed to work. Not even at the company I owned. Vietnam’s work permit system isn’t logical — it’s bureaucratic. We design visa + company setups together so you don’t get trapped in the grey zone where you own a business… but legally can’t operate it. It's all in the structuring.

Business culture in Vietnam is a test you’re not told you’re taking

Before you register a company in Vietnam, understand this: the way business gets done here is nothing like the West. You’ll need to adapt fast. Even something that would usually be regarded as common sense in your home country may be met with responses like “Your demands are too high” in Vietnam.

Not understanding business culture in Vietnam can easily lead to frustration. For example, it’s okay in Vietnamese business culture to plan for a very short period of time ahead. For better or for worse, personal relationships play a central role in business transactions in Vietnam. Often, business relationships start as informal meetings over coffee and develop into late-night parties. Forget LinkedIn—here, it’s all about Zalo. Vietnamese suppliers use it for everything from contract talk to midnight production updates.

Oh, you thought dialects didn’t matter in business? That’s another mistake. Vietnam is not a monolith. There are many parts of Vietnam with linguistic and cultural differences. Hanoi and Saigon not only sound different, they think differently. And yes, people bring those biases into the workplace. Some Vietnamese suppliers will even judge you for your accent. It’s subtle. But you can do everything right—and if your accent’s off, the deal might already be lost.

Language barriers

The language barrier can slow you down—especially when you're finding suppliers in Vietnam. A third-party like Vietnamia helps bridge that gap and keeps things moving. Often, language barriers can lead foreign entrepreneurs to shady individuals offering help , therefore be sure to verify the supplier's identity before making any payments.

Patience is key to building a successful business in Vietnam

If you're planning to register a company in Vietnam, expect the unexpected. Building a business in Vietnam takes grit. Things move slower than you’d expect, and patience is your survival skill in this chaotic environment. The legal process here isn’t built for speed. But if you stay patient, you’ll get through it.