Premia TNC Vietnam Team
Author
Sales through social media and live commerce are booming in Vietnam, with platforms like TikTok, Shopee Live, and Facebook Live driving real-time shopping experiences. Vietnamese consumers have quickly embraced mobile shopping, making social platforms the new retail battleground. This dynamic shift has drawn strong interest from Korean companies eager to tap into Vietnam’s fast-growing digital marketplace through influencer marketing.
However, many of these companies face an important question before diving in: Is it really necessary to establish a local corporation to sell products through influencers in Vietnam? This question lies at the heart of market entry strategy, taxation, and compliance considerations for foreign brands. Let’s explore the answer in a clear Q&A format to help you understand what’s truly required to launch influencer-driven sales in Vietnam.
Question 1:
Do I need to establish a legal entity in Vietnam to sell products through influencers?
Answer:
You can start selling without a corporation, but if you plan to build a long-term and scalable business, establishing a local legal entity is essential.
Currently, in Vietnam, companies can promote and sell products through social media marketing without setting up a local corporation. However, direct participation on local e-commerce platforms and integration with delivery or payment systems are highly limited without a legal presence. Besides, there are also some issues related to tax payment to the Vietnamese government that need to be considered.
Selling Before Incorporation:
i. Collaborate with Local Influencers (KOLs): Partner with Vietnamese influencers who promote your products on social media and direct customers to your Korean online store (e.g., Naver Smart Store) via purchase links.
ii. Cross-Border Sales: Products are shipped directly from Korea. This method is simple to start but involves higher shipping costs and longer delivery times.
iii. Register as a Global Seller on Shopee or Lazada: Korean companies can register as global sellers, but payment processing and settlement systems are often complicated to manage.
Selling After Incorporation:
i. Operate Official Brand Stores: Run your own store on Shopee, Lazada, and TikTok Shop Vietnam, available only to locally registered entities.
ii. Integrate with Local Payment Systems: Accept payments via VNPAY, MoMo, and other Vietnamese gateways, increasing consumer trust and conversion rates.
iii. Utilize Local Logistics Centers: Store products locally to ensure faster, more reliable deliveries.
iv. Conduct Official Advertising and Live Commerce: Promote your brand through local ads and live streams, maximizing brand visibility and engagement.
To Summarize:
While short-term sales are possible without a corporation, establishing a local legal entity is the key to building a sustainable and competitive presence in the Vietnamese market.
Moreover, having a clear legal presence and the ability to deliver goods quickly within the country offers a major advantage compared to international shipping. Vietnamese consumers increasingly expect faster delivery and are often willing to pay a higher price to receive their orders sooner — something that is difficult to achieve with cross-border sales.
Question 2:
How can I collaborate with Vietnamese influencers to sell products without setting up a local company?
Answer:
Method 1: Leverage Social Media Influencer Marketing
- Partner with Vietnamese influencers on TikTok, Instagram, or Facebook to naturally promote your brand through authentic content and live commerce sessions.
- After live promotions, traffic is directed to your purchase page (e.g., Korean mall or Naver Smart Store).
- Products are shipped directly from Korea through overseas direct purchase, though this may result in higher shipping costs.
Method 2: Sell Globally on TikTok Shop
- Register as a global seller on TikTok Shop to target the Vietnamese market.
- However, without a local logistics base, delivery times may be significantly longer, potentially affecting customer satisfaction.
Method 3: Use Shopee and Lazada’s Cross-Border Selling Options
- Some platforms allow foreign company registration, but integration with local payment systems may be restricted.
- As a result, Vietnamese consumers may hesitate to purchase due to limited payment options and lack of local trust.
Important Note:
While you can sell without establishing a local entity in the short term by leveraging influencer marketing and cross-border sales platforms, setting up a legal entity in Vietnam is essential for long-term growth. It enables faster delivery, seamless payment integration, and greater consumer trust.
Question 3:
What are the key perks of establishing a corporation in Vietnam?
Answer:
With a local legal entity, you can seamlessly manage every aspect of your e-commerce operations. From platform utilization and advertising to payments and delivery, all in one place. Here are 6 major perks of establishing a corporation in Vietnam.
1. Access Local E-Commerce Platforms
Officially enter major Vietnamese platforms such as Shopee, Lazada, and TikTok Shop.
2. Integrate with Trusted Payment Systems
Connect with local payment gateways like VNPAY and MoMo and Shopeepayto boost consumer confidence and transaction reliability.
3. Leverage Local Logistics Centers
Benefit from faster delivery times and lower logistics costs through local warehousing and fulfillment options.
4. Enhance Brand Visibility
Run advertising campaigns and promotional activities directly in Vietnam to strengthen brand awareness.
5. Engage in Live Commerce
Collaborate with Vietnamese influencers to host live selling events, driving engagement and real-time conversions.
6. Expand Your Market Reach
Establishing a local entity enables strategic operations tailored to Vietnam’s market, helping to build long-term brand credibility and maximize sales potential.
Question 4:
Is it possible to start selling first and establish a corporation later in Vietnam?
Answer:
You can start without a legal entity, but establishing a corporation brings greater advantages. You can expect the following advantages upon establishing a corporation in Vietnam.
- Start by building brand awareness through influencer collaborations, this can be done even without a legal entity.
- However, limitations exist, without a legal entity, you cannot officially operate on local e-commerce platforms.
- Consumer trust may be lower due to the lack of localized logistics and payment options.
- Growth potential is restricted, as you won’t be able to run local advertising or marketing campaigns effectively.
You can begin your market entry without a legal entity, but for sustainable growth and stronger local presence, establishing a corporation early on is highly recommended.
To Conclude
In the short term, it’s possible to sell in Vietnam through social media and influencer marketing without establishing a corporation. However, this approach comes with limitations. You will not be able to officially operate on local e-commerce platforms like Shopee, Lazada, or TikTok Shop, nor take advantage of local payment and logistics systems. Moreover, tax and related compliance matters should also be carefully taken into consideration.
For long-term success, establishing a corporation is essential. Having a legal entity allows you to officially participate in Vietnam’s major e-commerce platforms, reduce logistics costs, and boost consumer trust through localized operations, advertising, and live commerce.
If you’re serious about expanding your business in Vietnam, consult with Premia TNC to plan your company incorporation and build a strong foundation for sustainable growth.
Premia TNC Vietnam Team
Author
Premia TNC Vietnam is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Vietnam and across the region. Premia TNC Vietnam specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
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