The economy of Vietnam has been growing steadily during the past few years. Businesses, both new and old are still growing. This presents the potential for advertising and also digital marketing firms to be very successful. Vietnam welcomes foreign investment in this sector of the economy. Before the set up company Vietnam for advertising or digital marketing, there are several regulations for company registration that must be met. Finding a local partner who can take on 1% of the company ownership and has an advertising license is the biggest issue facing potential agencies. Continue reading to learn how to start an advertising set up a company in Vietnam and also what you need to know first.
Joint Venture With a Locally Owned Advertising Agency:
Only advertising agencies with 100% Vietnamese ownership are permitted to work in Vietnam. But it is for something other than foreign-owned agencies. At least 1% of your business must be owned by your local partner in order for your advertising agency to be registered in Vietnam. It is necessary to set up company Vietnam. The hardest prerequisite to meet is finding a mate. Your business partner must be locally owned. He should be 100 percent licensed to promote businesses that can demonstrate ongoing advertising activity. He has the ability to obtain DPI permission for your advertising agency
Finding a compatible spouse is typically the most difficult condition to meet, as was already noted. If you don’t have a local partner who holds an advertising license and owns at least 1% of your firm. Your application to set up company in Vietnam won’t be granted. Your problems can be resolved if you adopt a legal way for your company registration. The government of Vietnam safeguards your financial investment by guaranteeing that you retain ownership of your business and connecting you with a suitable partner that owns just 1% of your advertising agency.
Advertising Laws In Vietnam:
In Vietnam, the advertising and digital marketing industries are highly regulated. The kind of advertisements that can be made in public places and online are restricted by various legislation. To set up company Vietnam it is essential to follow the advertising laws. In this way, it will be easy for company registration. Running an advertising business in Vietnam can be a successful Endeavour provided you are aware of certain laws.
Advertising In Public Spaces:
Making sure that the content you publish does not violate Vietnamese advertising regulations is adequate in the case of digital advertising and marketing. Before the set up company Vietnam focus on the content, you prepared to show the audience. However before they can be exhibited, offline advertisements intended for public spaces must be submitted to the Department of Culture and Technology for approval.
Goods Banned From Advertising:
Certain products and services are not permitted to be advertised in Vietnam according to Law 16’s Article 7. If you promote them then it will be difficult for you to save the reputation of your company.
The restricted actions that hit the reputation of your business are given below.
- Tobacco prescription medication
- Beverages with an alcohol content exceeding 15%
- Pornographic items
Acts and Ideas Banned From Advertising:
Article 8 of the same statute prohibits certain activities or concepts from being advertised. To set up company in Vietnam it is important to stay away from some actions that are prohibited. And if you advertise them it will be difficult for you to run your company there.
The following content is prohibited, but is not limited to:
- Disrespects for Vietnamese history, culture, or cultural icons
- Expresses bias against disabled persons, violates their right to freedom of religion or belief or is racial or sexual discrimination
- Compares the cost, value, and effectiveness of products and services
- Uses terms with comparable meanings such as “best,” “only,” or “number one” without having the proper documentation as required by the Ministry of Culture, Sports and Tourism.
- Digital advertising and marketing won’t be as significantly hampered by Vietnam’s advertising rules. These regulations’ main objectives are to uphold Vietnamese culture and safeguard consumers from misleading advertising. It is necessary to follow these rules before company registration.
Grow Market for Advertising and Digital Marketing:
Many people are aware of the business opportunities presented by digital marketing and advertising. However, due to a lack of professional training and foreign investment in these specific fields of competence the sector in Vietnam is still underdeveloped. According to a poll by Asia Plus Inc., 60% of agencies believe that their clients don’t comprehend digital marketing.
30% of businesses believe that within their own organization there is a lack of awareness of digital marketing.
Less than 10% of businesses give their agencies a Net Promoter Score of 7 or higher, with poor communication and a failure to produce expected deliverables being the most significant problems. If you take an overview of the advertising business then it can be easy for you to set up company Vietnam.