In today’s booming Vietnamese economy, an increasing number of Chinese enterprises are turning their attention to this land of opportunity. However, cross-border operations are no easy task, especially in special industries such as financial services and telecommunications. These fields not only harbor enormous market potential but also face strict regulatory requirements and complex license application processes. This article will delve into two typical cases, providing valuable experience sharing and practical guidelines for enterprises aiming to expand into financial services or telecommunications businesses in Vietnam.
By analyzing these successful cases, we will reveal key stages in the application process and common obstacles. Whether you are an entrepreneur considering entering the Vietnamese market or an enterprise already operating in Vietnam but hoping to expand into these highly regulated industries, this article will provide you with a clear roadmap and feasible solutions. Let us explore together how to successfully navigate the regulatory maze in Vietnam and win a place for your business in this emerging market.
The Rising Star in Vietnam’s Fintech Sector: VietPay’s Journey to Obtaining a Payment Service License
In Vietnam’s burgeoning fintech market, the rise of VietPay is undoubtedly a notable success story. Founded in 2020 by several Vietnamese entrepreneurs with rich financial and technological backgrounds, the company was driven by a vision to provide safe and convenient payment solutions for Vietnam’s growing digital economy. Before formally applying for the license, VietPay had already developed a fully functional mobile payment platform prototype and conducted small-scale testing, laying a solid foundation for future large-scale operations.
VietPay aimed to obtain a non-bank payment service license for domestic services issued by the State Bank of Vietnam (SBV). This type of license is a key pass to enter Vietnam’s electronic payment market, allowing holders to provide e-wallets, payment gateways, and other digital services. However, obtaining this “golden ticket” was no easy feat, and VietPay’s application was full of challenges and opportunities.
The application process began with preliminary preparation work. VietPay spent about 4 months collecting all necessary documents, including company registration certificates, team profiles, and detailed business plans. Next, they proactively engaged in preliminary consultations with relevant departments of the SBV, a step that took 2 months but paved the way for the subsequent formal application. After submitting the complete application package, the company underwent a 3-month initial review period, during which they provided supplementary materials and explanations based on multiple feedbacks from the SBV.
Notably, the SBV set a series of strict requirements for payment services. The foremost was a minimum registered capital requirement of 100 billion Vietnamese dong (about $4.3 million), undoubtedly a huge challenge for a startup. Additionally, the management team must have at least 3 years of senior management experience in the financial or technology sector. The company also needed to build a payment system compliant with international standards, develop a comprehensive risk assessment and management system, and implement strict customer fund protection measures and anti-money laundering (AML) policies.
Faced with these stringent requirements, VietPay encountered significant difficulties. Raising the minimum registered capital was the first high hurdle, which the company overcame through multiple rounds of financing, eventually securing investments from local and international venture capitalists. Technical compliance was another thorny issue, for which VietPay hired international security consulting firms to audit their systems and implement necessary upgrades. Furthermore, to meet the requirements of data localization and local server deployment, the company collaborated with local Vietnamese data centers to establish compliant IT infrastructure. In terms of building the management team, VietPay recruited experienced executives from traditional banks and international payment companies to meet SBV’s qualification requirements.
The entire application process lasted about 18 months, including 4 months of preliminary preparation, 2 months of initial consultation and application work, 3 months of SBV initial review and feedback, 2 months of supplementary materials and adjustments, 3 months of on-site inspection and technical assessment, and finally 4 months of final processing. Throughout this intensive process, VietPay demonstrated extraordinary patience and adaptability, constantly adjusting its strategies according to regulatory requirements.
VietPay’s ultimate success in obtaining the license can be attributed to several key factors worth noting. First, strong investor backing ensured the company could meet strict capital requirements. Second, the professional management team combining financial and technological expertise won the trust of regulatory authorities. Moreover, the payment system developed by the company complied with international security standards, demonstrating strong technical capabilities. Additionally, VietPay established a strict compliance culture from the outset, including comprehensive anti-money laundering and risk management systems. The company also adopted an insightful localization strategy, working closely with local Vietnamese partners to gain a deep understanding of market needs and regulatory environment. Finally, throughout the application process, VietPay demonstrated the ability to respond quickly to SBV requirements and feedback, and this flexibility was undoubtedly one of the keys to success.
VietPay’s experience provides valuable insights for other companies entering the Vietnamese payment market. First, applicants need to plan for the long term, preparing for an 18-24 month application process. Second, in addition to meeting the minimum registered capital requirements, ample operating funds should be prepared. Establishing good communication channels with regulatory authorities is also crucial, helping to stay informed about policy changes and requirements. Investment in technology cannot be overlooked; ensuring system security and compliance is the foundation for obtaining a license. A deep understanding of Vietnamese culture and business environment, and adapting products to local needs, are also key factors for success. Furthermore, assembling a management team and technical team that meet requirements in advance, and integrating compliance culture into all aspects of company operations, are essential aspects of the application process. Finally, maintaining patience and a positive attitude is important, as temporary setbacks and interruptions are inevitable during the application process.
VietPay’s successful case demonstrates the art of navigating Vietnam’s complex financial regulatory environment. Through strategic planning, thorough preparation, flexible response, and commitment to compliance, VietPay not only obtained the valuable payment service license but also gained a first-mover advantage in Vietnam’s booming fintech market. This case undoubtedly provides a valuable reference blueprint for enterprises hoping to explore financial services in Vietnam.
The New Player in Vietnam’s Telecom Market: TechConnect’s ISP License Application Process
In Vietnam’s booming telecommunications market, the rise of TechConnect is nothing short of legendary. Founded in 2019 by a group of telecom and internet technology experts from both Vietnam and internationally, this tech company was driven by the ambitious vision of providing high-speed, stable, and widely-covered internet services for Vietnam’s growing digital economy. TechConnect’s goal was clear and ambitious: to become one of Vietnam’s leading Internet Service Providers (ISPs). To achieve this goal, the company embarked on a challenging journey to apply for an ISP license.
TechConnect aimed for the ISP license issued by Vietnam’s Ministry of Information and Communications (MIC), which is the key to entering Vietnam’s telecom market. Obtaining this “entry ticket” meant the company could provide fixed telecommunications and mobile data services within Vietnam, laying the foundation for TechConnect to establish a foothold in this competitive market. However, the application process was far from easy, testing the company’s patience, resources, and strategic wisdom.
The journey began with a preliminary preparation period. The TechConnect team invested nearly 6 months, fully dedicating themselves to collecting and preparing application materials. This included compiling comprehensive company registration documents and developing long-term business plans. Additionally, the company proactively engaged in 2 months of preliminary communication with relevant MIC departments. Although this step was time-consuming, it paved the way for the subsequent formal application and established a good relationship with regulatory authorities.
The formal application procedure was a marathon. First, TechConnect submitted a thick package of application materials to the MIC. Then, the company underwent MIC’s review, providing supplementary materials and explanations based on feedback multiple times during this period. A key step was participating in the technical assessment meeting organized by MIC, where TechConnect showcased the company’s technical strength and network planning blueprint. Subsequently, the company also underwent on-site inspections of its infrastructure and technical systems by MIC, a crucial step for obtaining approval. The entire process was full of waiting and adjustments, finally concluding with the payment of relevant fees and the receipt of the official ISP license.
In terms of technical requirements, MIC set a series of strict standards for ISP applicants, testing TechConnect’s technical strength and innovation capabilities. The company needed to demonstrate its ability to build and operate a high-quality internet network. This included establishing network infrastructure compliant with international standards, covering main core network equipment, transmission systems, and access networks. The network had to have sufficient capacity and scalability to support user growth expectations for the next 5 years. At the same time, the company needed to implement advanced network security measures such as DDoS protection and data encryption, and establish a 24/7 network monitoring and customer support center. Moreover, developing detailed network quality assurance plans and emergency response protocols was also imperative.
Vietnam’s strict localization requirements for foreign enterprises in the telecommunications sector posed a major challenge for TechConnect with its international background. The company needed to ensure that foreign shareholding did not exceed 49%, and key management positions had to be held by Vietnamese citizens. At the technical level, core network equipment and data centers had to be located within Vietnam, with customer data stored on local servers. Furthermore, the technical support and customer service teams had to be primarily composed of local Vietnamese employees, requiring the company to invest significant resources in talent recruitment and training.
Compliance was another major challenge faced by TechConnect. In terms of network security, the company needed to comply with Vietnam’s strict cybersecurity laws, implementing robust user authentication measures, establishing comprehensive user data protection, developing detailed network security incident response plans, and undergoing regular cybersecurity reviews by MIC. Data localization was another tricky issue; TechConnect not only needed to ensure all user data was stored within Vietnam but also had to establish strict data access controls to prevent unauthorized access or cross-border transmission of sensitive data.
To obtain the valuable ISP license, TechConnect invested a substantial amount of capital. The total investment reached $50 million, with about 60% used for network infrastructure construction, 15% for technical talent recruitment and training, 5% for license application-related fees, 10% for marketing and brand building, and the remaining 10% as operating capital reserve. This large-scale investment served as the company’s long-term commitment to the Vietnamese market and laid the foundation for winning MIC’s trust.
The entire application process took about 24 months, testing patience and perseverance. Initial preparation and preliminary communication took 8 months, formal application submission and initial review took 3 months, technical assessment and supplementary materials took another 4 months. The subsequent detailed preparation and final review lasted 6 months, and the final approval and license issuance took 3 months. Throughout this intensive process, TechConnect demonstrated remarkable resilience and adaptability.
TechConnect’s ultimate success in obtaining the ISP license can be attributed to several key strategies worth noting. First, the company invested significant time and resources in market research and technical preparation before the formal application, laying a solid foundation for the entire process. Second, TechConnect established strategic partnerships with local Vietnamese telecommunications infrastructure providers, accelerating the network deployment process. In terms of localization, the company flexibly adjusted its corporate structure through cooperation with local partners to meet foreign investment requirements.
Technological innovation was another winning strategy for TechConnect. The company introduced some advanced network technologies, such as Software-Defined Networking (SDN), which improved network efficiency and flexibility. This not only met MIC’s technical requirements but also gave the company a competitive advantage in the market. At the same time, TechConnect made compliance a core part of its corporate strategy from the beginning, investing substantial resources to ensure all regulatory requirements were met, an attitude that won MIC’s trust.
Throughout the application process, TechConnect maintained close and transparent communication with MIC, promptly responding to all inquiries and requirements, demonstrating the company’s professionalism and sincerity. Talent localization was also a highlight of the company’s strategy, actively recruiting and nurturing local Vietnamese technical and management talent, which not only increased the company’s level of localization but also contributed to talent development in Vietnam’s ICT industry. Finally, TechConnect demonstrated to MIC its long-term investment commitment to the Vietnamese market, including a detailed 5-year development plan, which further enhanced the confidence of regulatory authorities.
TechConnect’s success story provides valuable lessons for companies hoping to enter the Vietnamese telecommunications market. It demonstrates how to successfully obtain key industry licenses in Vietnam’s complex regulatory environment through strategic planning, thorough preparation, flexible response, and commitment to compliance. This process is deep and challenging, but for companies hoping to gain a foothold in Vietnam’s booming telecommunications market, TechConnect’s experience is undoubtedly a beacon of progress. In today’s era led by the digital economy, such success stories not only concern the fate of a single company but also inject new vitality into Vietnam’s digital infrastructure construction and economic development.
Case 3: MediTech’s Journey to Obtain a Medical Device License in Vietnam
In Vietnam’s burgeoning medical market, the rise of MediTech Vietnam is undoubtedly a noteworthy success story. This joint venture, established by Vietnamese medical experts and an international medical technology company, harbored the ambitious vision of introducing advanced CT scanners and MRI equipment to Vietnam, aiming to enhance local medical diagnostic capabilities. However, to gain a foothold in Vietnam’s medical equipment market, they first needed to overcome strict regulatory hurdles.
MediTech’s goal was clear and challenging: to obtain a medical device import and sales license issued by Vietnam’s Ministry of Health (MOH). This license is crucial for selling high-risk medical equipment in the Vietnamese market and was key to the company’s business development. The application process was akin to a marathon, lasting about 14 months from start to finish, filled with challenges and learning experiences.
The journey began with a meticulous 4-month preparatory phase. The MediTech team invested wholeheartedly in collecting and preparing application materials. This included compiling comprehensive product technical documentation, preparing detailed equipment design principles, manufacturing processes, and comprehensive risk analysis reports. Simultaneously, the company needed to ensure its quality management system complied with ISO 13485 standards, an international requirement in the medical device industry.
Once prepared, MediTech submitted a thick package of materials to the Ministry of Health. The following two months were a period of intense waiting and coordination. MOH’s review was meticulous, covering aspects such as curriculum design, teacher qualifications, and financial conditions. The MediTech team needed to be ready to answer various in-depth questions at any time, demonstrating the company’s educational philosophy and operational capabilities.
The on-site inspection was another crucial stage. MOH officials personally visited the company to verify facilities and quality control processes. This was not just a hardware check but a comprehensive assessment of the company’s operational capabilities. The MediTech team demonstrated high professionalism and transparency during this stage, winning the inspectors’ approval.
However, challenges persisted. The product testing phase lasted a full 3 months, during which MediTech’s equipment underwent rigorous safety and efficacy tests in MOH-designated laboratories. This stage not only tested product quality but also the company’s technical expertise. The subsequent expert review was an intellectual confrontation, where an expert panel organized by MOH conducted a comprehensive evaluation of the product. MediTech’s technical team needed to answer various targeted questions, showcasing the product’s advantages and innovations.
Throughout the process, MediTech faced several significant challenges. The language barrier was the first hurdle, prompting the company to hire a professional translation team to ensure all Vietnamese versions of documents were not only accurate but also precisely conveyed technical details. Localization requirements were another major issue. MediTech addressed this by partnering with leading Vietnamese hospitals to establish local training centers and maintenance networks, not only meeting regulatory requirements but also laying the foundation for future market expansion.
Moreover, the frequent changes in Vietnam’s medical device regulatory policies brought uncertainties to the application process. To address this, MediTech hired experienced local regulatory consultants to keep real-time track of policy trends, ensuring the company’s strategy always aligned with the latest requirements. This approach helped the company navigate risks during the application process.
The scale of investment was also a significant factor. MediTech invested about $20 million in this process, mainly for product certification, facility construction, and personnel training. Such a large-scale investment not only demonstrated the company’s strength but also showed regulatory authorities the company’s long-term commitment to the Vietnamese market.
MediTech’s ultimate success in obtaining the license can be attributed to several key factors worth noting. First, the company established close cooperation with local medical institutions, obtaining valuable clinical use data support, which played a crucial role in the expert review stage. Second, MediTech emphasized technology transfer, committing to training local medical personnel, which not only won the favor of regulatory departments but also established a good reputation for the company in Vietnam’s medical community. Finally, the company demonstrated strong market adaptability, flexibly adjusting product configurations to meet specific market needs, and this localization strategy enhanced the competitiveness of MediTech’s products.
MediTech’s success story provides valuable lessons for companies hoping to enter the Vietnamese medical device market. It demonstrates how to successfully obtain key industry licenses in Vietnam’s complex regulatory environment through meticulous preparation, flexible strategies, continuous investment, and a profound understanding of the local market. This is not just a story of business success, but also a contribution to the improvement of Vietnam’s medical standards.
Case 4: EduVision’s Journey to Obtain an International School License
In the booming education market of Vietnam, the EduVision International School project is undoubtedly a rising star. This education group, dedicated to establishing high-quality international schools in Vietnam, embarked on a challenging yet hopeful journey to obtain a license, driven by the dream of providing world-class education to Vietnamese students.
EduVision’s goal was to obtain an international school operation license issued by Vietnam’s Ministry of Education and Training (MOET). This license is a prerequisite for operating an international school in Vietnam and a ticket to enter this high-potential but strictly regulated education market. The entire application process lasted about 16 months, a test of patience, wisdom, and resources.
The journey began with a 6-month preliminary planning phase. The EduVision team invested significant time and energy in developing a detailed school development plan. This included not only site selection, campus design, and curriculum planning but also a 5-year forecast. Every detail was carefully considered, as they knew that a successful international school requires not only high-quality educational content but also a sustainable operational model.
Once prepared, EduVision submitted a letter of intent to MOET, officially launching the application. This stage tested not only the team’s preparation but also their understanding of Vietnamese education policies.
In the formal application stage, EduVision submitted a comprehensive application package. The following 3 months were a process of intense waiting and coordination. MOET’s review was meticulous, covering aspects such as curriculum design, teacher qualifications, and financial conditions. The EduVision team needed to be ready to answer various in-depth questions at any time, demonstrating the company’s educational philosophy and operational capabilities.
The on-site inspection was another crucial stage. MOET officials personally visited the proposed school site to assess whether it was suitable for building an international school and whether it met various safety and environmental standards. This was not just a hardware check but a comprehensive assessment of EduVision’s overall planning capabilities. The company team demonstrated high professionalism and foresight during this stage, winning the approval of the inspectors.
Throughout the process, EduVision faced several significant challenges. First was the issue of land use rights. In Vietnam, obtaining suitable land for education is not an easy task. To address this, the company engaged in deep cooperation with local governments, securing an ideal campus location with government support. This not only solved immediate needs but also won necessary support for future operations.
Teacher resources were another thorny issue. International schools require high-quality teaching staff, which are scarce resources in Vietnam. EduVision adopted a two-pronged strategy: on one hand, establishing a global teacher recruitment network to attract international education talent; on the other hand, heavily investing in local teacher training, contributing to the long-term development of Vietnam’s education sector.
Cultural integration was also an important topic. EduVision understood that a successful international school must respect and integrate local culture while providing international education. To this end, the company specially designed an international curriculum with Vietnamese cultural integration elements, which not only met regulatory requirements but also enhanced the school’s market attractiveness.
The scale of investment was another key factor in EduVision’s success. The company invested about $30 million in this project, mainly for campus construction, equipment procurement, and initial operations. This large-scale investment not only ensured high-standard hardware facilities but also demonstrated to MOET the company’s strength and determination for long-term development.
EduVision’s successful strategies in obtaining the license are worth in-depth discussion. First, the company established strategic partnerships with internationally renowned schools, introducing mature educational models and management experience. This not only enhanced the project’s credibility but also provided valuable support for future operations.
Second, EduVision paid great attention to localization strategies. The company hired Vietnamese education experts to participate in curriculum design, ensuring that educational content met international standards while catering to the needs and characteristics of Vietnamese students. This approach not only won MOET’s approval but also enhanced the school’s future market competitiveness.
Finally, EduVision committed to providing a certain proportion of scholarships for local students, an initiative that gained wide support from various sectors of society. It not only demonstrated the company’s social responsibility but also won a good public image for the school, which is extremely important in the education industry.
EduVision’s success story provides valuable lessons for institutions hoping to establish international schools in Vietnam. It demonstrates how to successfully obtain key educational licenses in Vietnam’s complex regulatory environment through well-thought-out planning, flexible localization strategies, continuous investment, and commitment to social responsibility. This is not just a story of business success, but represents a new chapter in the development of international education in Vietnam, opening another window to the world for Vietnamese students.
Through in-depth analysis of license application cases in the fields of fintech, telecommunications, medical devices, and international education, we can clearly see the enormous potential and complexity of the Vietnamese market. These cases not only demonstrate the unique challenges of each industry but also highlight some common elements of success.
Firstly, a profound understanding and adaptation to Vietnam’s regulatory environment is crucial. Whether it’s VietPay’s efforts in the fintech sector or TechConnect’s breakthrough in the telecommunications market, both reflect precise grasp and flexible response to local regulations.
Secondly, localization strategy played a key role in each case. MediTech Vietnam’s close cooperation with local medical institutions, and EduVision’s curriculum design incorporating Vietnamese cultural elements, both convey the importance of localization.
Investment scale and long-term commitment are equally key factors for success. These companies all demonstrated firm confidence in the Vietnamese market, and through large-scale investments, not only met regulatory requirements but also laid the foundation for long-term development.
Moreover, the importance of technological innovation and talent cultivation is fully demonstrated in various cases, which is not only key to obtaining licenses but also necessary for maintaining advantages in competitive markets.
Notably, these enterprises not only focus on business success but also actively fulfill social responsibilities. Whether providing scholarships, training local talent, or improving local technological levels, all reflect the enterprises’ contributions to Vietnam’s social development. This approach not only won the favor of regulatory departments but also gained widespread support from various sectors of society.
For enterprises considering entering special industry markets in Vietnam, these cases provide valuable experience and insights. While the Vietnamese market is full of opportunities, it is also full of challenges. Success requires patience, wisdom, continuous investment of resources, and a profound understanding and respect for the local market.
We also see the balance struck by the Vietnamese government between promoting economic development and protecting national interests. Strict regulation is both a challenge and an opportunity, ensuring the healthy development of the market while providing opportunities for those enterprises that truly have strength and are willing to contribute to the country’s development.
As Vietnam continues its modernization process, we have reason to believe that this vibrant market will provide vast development space for more visionary enterprises. And those enterprises that can understand and respect Vietnam’s unique business environment will surely reap rich rewards on this fertile soil.
