Understanding business addresses in Vietnam: The importance of the Company Report by VBI

According to the Vietnamese Law on Enterprises (2020), the registered address of a company, as stated on its business license, is the official location where the company operates.

However, in recent years, particularly due to the COVID-19 pandemic and other internal challenges faced by businesses, many companies in Vietnam no longer operate at the registered addresses on their business licenses. This situation has raised significant concerns, not only for local tax authorities but also for partners, especially foreign enterprises looking to collaborate with Vietnamese businesses.

The Challenge: discrepancies in business addresses

One of the major challenges arising from this trend is the difficulty in determining the accurate operating address of companies in Vietnam. Businesses that do not operate from their registered addresses can create complications for various stakeholders. For instance:

• Tax authorities may struggle to collect taxes or communicate with companies that are no longer operating from the registered locations.
• Foreign partners or potential investors may find it difficult to verify the legitimacy and operational status of a company when the physical address provided does not match its actual business operations.

For international enterprises seeking to enter the Vietnamese market, this lack of transparency can lead to hesitation and uncertainty, as identifying the correct information is a key aspect of due diligence.

The Solution: Company Report by Vietnam Business Information (VBI)

So, how can businesses and investors overcome these challenges? The answer lies in utilizing the Company Report by Vietnam Business Information (VBI). This product is designed to address the issue of discrepancies in company addresses and provides detailed insights into a company’s operations, including up-to-date and verified business addresses.

Key benefits of the Company Report by VBI

• Accurate Business Address Verification: The report offers verified and accurate information about where a company is currently operating, even if it is not the address listed on the business license.
• Comprehensive Data: In addition to addresses, the Company Report includes non-public information about a business, giving users a deeper understanding of the company's structure, financial health, and legal standing.

• Enhanced Due Diligence: This tool is particularly useful for foreign businesses looking to partner with Vietnamese companies. The detailed reports provide essential information, enabling businesses to make informed decisions about potential collaborations or investments.
• Risk Mitigation: By providing accurate information, the VBI Company Report helps businesses avoid unnecessary risks associated with companies that might not be operating as expected. This is especially important in a market like Vietnam, where economic conditions have been volatile in recent years.

A vital tool for business success

In a dynamic and evolving business environment, having access to accurate and reliable information is more important than ever. The Vietnam Business Information Company Report offers an indispensable tool for companies, investors, and partners to verify the operational status of businesses in Vietnam. By utilizing this report, stakeholders can ensure they are making sound business decisions based on the most up-to-date and accurate information available.

As the landscape for businesses in Vietnam continues to change, tools like the VBI Company Report will remain essential in helping enterprises navigate potential uncertainties and maintain strong, informed partnerships.

Ami Le – Vietnam Business Information