Guide to Establish a Wholesale Company in Vietnam

Vietnam’s booming economy, growing middle class, and strategic position in Southeast Asia make it an attractive destination for wholesale businesses. With increasing demand for industrial equipment, consumer products, and construction materials, foreign investors have significant opportunities to establish a wholesale trading company. However, navigating Vietnam’s regulatory framework, licensing requirements, and market dynamics is crucial for success. This guide outlines key considerations for setting up a wholesale business in Vietnam, including regulatory requirements, product categories, and market entry strategies.

Guide to Opening a Wholesale Company in Vietnam

1. Background of Vietnam’s Wholesale Market

Vietnam’s wholesale sector has expanded rapidly due to strong domestic demand, industrial growth, and rising e-commerce. Key factors driving this growth include:

• Industrialization & Infrastructure Development: Increased manufacturing activity has boosted demand for wholesale supply chains in industrial equipment, construction materials, and chemicals.

• Expanding Retail & E-commerce: The rise of modern retail, supermarkets, and online marketplaces has increased the need for wholesale distribution networks.

• ASEAN Trade Agreements: Vietnam’s participation in regional trade agreements enhances its position as a trading hub, allowing wholesalers to import/export efficiently.

• Foreign Investment & Business-Friendly Policies: The Vietnamese government actively encourages foreign participation in wholesale trading, though certain restrictions apply.

2. Regulatory Requirements for Establishing a Wholesale Business

Minimum Capital Requirement: Typically USD 50,000–100,000, varying by product category and business scale.

Required Licenses & Permits: Foreign investors must obtain:

• Investment Registration Certificate (IRC) – Grants approval for foreign investment.

• Enterprise Registration Certificate (ERC) – Officially registers the company as a legal entity.

• Product-Specific Permits – Necessary for regulated items such as chemicals, food, and pharmaceuticals.

3. Key Product Categories Open for Foreign Wholesale

Industrial Equipment & Machinery

• Manufacturing and factory equipment

• Construction and agricultural machinery

• Industrial tools and automation systems

Construction Materials

• Steel, metal products, and cement

• Electrical and plumbing supplies

• Flooring, glass, and insulation materials

Consumer Products

• Electronics, household goods, and personal care items

• Clothing, textiles, and footwear

• Packaged food and beverages

Chemical Products

• Industrial chemicals and raw materials

• Cleaning supplies and solvents

• Paints, coatings, and adhesives

4. Restrictions & Limitations

Restricted Products: Rice, sugar, published materials, petroleum, pharmaceuticals, and tobacco/cigarettes require special approvals.

Warehousing Compliance: Wholesale businesses must follow Vietnam’s storage and safety regulations.

5. Market Entry Strategies for Wholesale Businesses

Find Reliable Local Partners

• Build relationships with manufacturers, distributors, and retailers.

• Work with established logistics providers to streamline operations.

Set Up Warehousing & Logistics

• Choose locations with strong transport connectivity (e.g., Ho Chi Minh City, Dong Nai, Hanoi, Da Nang).

• Invest in inventory management and tracking systems.

Understand Local Pricing & Competition

• Study market pricing trends and import tariffs.

• Develop competitive pricing strategies based on local demand.

Build a Strong Distribution Network

• Identify key B2B customers such as factories, retailers, and government contractors.

• Utilize both offline and online channels for product distribution.

Vietnam presents a lucrative market for wholesale businesses due to its industrial growth, trade expansion, and increasing consumer demand. While the regulatory process requires careful planning, foreign investors can benefit from a well-structured market entry strategy, reliable local partnerships, and efficient logistics management. By navigating legal requirements and leveraging Vietnam’s growing economy, wholesalers can build a sustainable and profitable business in one of Southeast Asia’s fastest-growing markets.