Are you looking to open a dental care clinic in Vietnam but need more clarification about the cost and other details? Then this guide on opening a dental practice in Vietnam is for you, as it shows how it can be a 100% foreign-owned business now.
Like all other businesses, a dental practice has its fair share of challenges, including meeting regulatory requirements and finding the right partner. However, despite the adversities, setting up a dental care business is relatively fruitful, as only 2.1% of new dentists fail in the first 5 years of owning the company. So, let’s dive into the details of the business, including factors like costs and allowed activities that determine the success of the dental practice.
Opening a Dental Practice in Vietnam? Check out InCorp Vietnam’s One-stop Incorporation Services in Vietnam
What Are the Benefits of Owning a Dental Practice?
Before opening a dental practice, one must be familiar with the benefits of it. According to a survey conducted by DentalPost, most dental practice owners have an annual income of US$100,000 or more, and they are also prone to getting salary raises more easily than associate dentists. Considering that there are over 13000 dentists in the country and most of them work 31-40 hours every week, owning a dental care practice seems like a better choice, as the income is better with similar working hours as you can set your own fees.
However, dental practice owners (19%) are more likely to overwork compared to associate dentists (14%), according to the survey. While running a dental care business can provide an annual income of US$300,000, dental associates make US$175,000 which deteriorates further for early career dentists with less than 5 years of experience.
Moreover, owning a private practice doubles the possibility of getting benefits like health insurance, retirement plans, reimbursement for your education, and dental conferences attending coverage along with paid time off for holidays and vacations. All of these benefits aren’t that available to regular dental employees.
Additionally, these advantages have a positive impact on the job security of dental practice owners, who tend to remain in service for 15 years or more, unlike dental associates. Meanwhile, most associate dentists (85%) stay less than 7 years at a single practice and frequently look for new employers.
Other than that, owning a dental care business helps you to build your reputation as you can make decisions that help patients, gaining patients trust and loyalty. It also means that you are free to take on new patients or introduce new technology and treatments, enhancing the success of your business and career.
Read Related: Choosing the Ideal Business Location in Vietnam: The First Step of Success
Requirements for Opening a Dental Practice in Vietnam
Foreign entrepreneurs trying to invest in dental care in Vietnam must meet certain mandatory requirements set by the Vietnamese government, including having specific medical equipment and personnel.
- Medical Equipment: The dental clinic should have medical equipment to cover the scope of the business, along with sufficient anti-shock first aid kits and emergency drugs. It should also have suitable telecommunication and IT equipment to offer health counseling to patients and consult with other clinics.
- Personnel Requirement: The dental practice must have a chief physician with a professional certificate and a minimum of 54 months of practical experience in a particular specialty. Plastic surgeons or specialists in cosmetic clinics should have both professional and practical certificates, with the scope of their work detailed in the operating licenses.
- Labor Code: Doctors registered to practice at the clinic can’t be the physician in charge of professionals and technical at the clinic. However, a physician who is registered as an in-charge of the professionals is allowed to work overtime in another clinic in the same city or province. This is possible as long as the working hours of the doctors don’t exceed 200 hours as per the Labor Code.
Foreign doctors need a Vietnamese language proficiency certificate, work permits, and a labor contract signed with the clinic. In the absence of a language certificate, an interpreter can be roped in as a signed contractor with the clinic.
- Building Requirement: The clinic must be located at a fixed address with adequate lighting. It should have dust-proof floors, walls, and ceilings with hygienic materials used to make the walls. The clinic should be clearly separated from family living areas. While a specialized clinic needs to have a patient reception area of at least 10 by 18 square meters, maxillofacial clinics must include more than one dental chair for an area of 5 square meters, along with a 10 square meters dimension procedure room and a separate area to sterilize medical equipment.
- Lease Agreement: In the case of renting offices as clinics, ensure that the landlord grants permission to the investor to renovate the leased area in the lease agreement to fulfill the design and construction needs of the dental clinic.
As per the Schedule of Specific Commitments in Services of Vietnam in the World Trade Organization, medical and dental services in the country are open markets for foreign investors, and hence a company can be set up with 100% foreign capital. However, to open a dental practice in Vietnam, investors need to make at least US$200,000 in capital investment.
Read More: An Extensive Guide to Industry Capital & Deposit Requirements in Vietnam
Procedure for Registering a Dental Care Practice in Vietnam
Foreign investors opening a dental practice in Vietnam should diligently abide by the following steps to register their business as per Vietnamese law:
Establishing the Company
The foreign-owned business or dental clinic can be established with 1-100% foreign investment capital. However, if the clinic is a joint venture of foreign investors and Vietnamese partners, then you need to showcase it as a Vietnamese company-established business with registered specialty clinic business activities. The time given to establish the company ranges between 6 to 8 days, which also includes getting a Business Registration Certificate (ERC), stamp carving, and announcing the enterprise using the stamp.
Read More: Required Business Registration Certificates (ERC) in Vietnam for Company Formation
The investor is allowed to establish the company after they have been issued an Investment Registration Certificate (IRC). Once you get the IRC, the business registration agency can issue the ERC, letting the company publish notices of its establishment, stamp carving, and announcing their presence using the stamp on the National enterprise registration information portal.
Read More: Your Easy Guide to Obtaining an Investment Registration Certificate (IRC) in Vietnam
Operating Licenses & Transfer of Capital
The next step is to apply for an operating license to run a dental care specialty clinic and the transfer of capital to foreign investors (for 100% foreign owned businesses). To get the operating license you need to submit the following documents:
- A written proposal for the operating license as per Annex 13 of Circular No. 41/2011/TT-BYT
- Copy of investment registration and business registration certificates (IRC and ERC).
- Copy of the practicing certificate of the person who will be in-charge of the clinic or the department head or person in-charge of the special unit, along with a list of medical practitioners performing the medical examination and treatments at the clinic.
- Description of the organization, list of medical equipment and facilities
- Human Resource record of the person in charge of the medical professional at the facility but not subject to the issuance of a practicing certificate.
- Documents showing that the healthcare facilities are in line with the scope of the professional activities of the medical equipment and human resources available in the clinic.
- List of specialized techniques to be implemented on the basis of the list of specialized techniques promulgated by the Minister of Health.
Read Related: Healthcare Industry in Vietnam, Why You Should Invest Now
Activities Allowed in a Dental Clinic in Vietnam
Investors should understand the scope of the professional activities in dental care in Vietnam. As per Vietnamese law, a dental practice in Vietnam is allowed to perform the following medical activities:
- Dental orthopaedics
- Dental treatment and care
- Dental prosthesis
- Gum disease treatment
- Minor operations like face scar preventing wounds of less than 2 cm
- First aid treatment for maxillary and facial wounds
- Tooth extraction, tartar removal, and superficial incision of tooth abscesses
- Tooth implants
- A superficial laser treatment
- Common disease treatment and examination
- Any other professional activity approved by the Vietnamese health department at the provincial level
How Much Does It Cost to Open a Dental Practice?
Investors are often bothered by the ‘How much does it cost to open a dental practice?’ question, as it can be a costly affair, starting at US$200,000 – US$500,000 expense. However, the cumulative costs depend on a range of factors, like the size and location of the dental clinic, the equipment, and the services provided there. For instance, it takes less to open a dental care business in a low rent area as the cost-of-living is affordable there.
Before taking the plunge, ensure you have at least 6 months of overhead expenses along with the initial cost of setting up the business, as it might take to establish your name in the market and get a substantial number of patients to generate revenue. Take into account the following avenues of expenditure while calculating the overhead expenses:
- Salaries of the personnel working in the clinic. This should also include employee benefits.
- The cost of medical supplies, equipment, dental technology, and waste disposal.
- Utility bills, maintenance costs, mortgage or rent payments, and cleaning costs
- The cost of office supplies, vendor payments, professional services like consultants, taxes, licenses, marketing and advertising activities, insurance, payroll, and business technology.
- Other discretionary costs include business travel, transportation costs, educational expenses, and professional organizations.
- Lastly, your own compensation for running the clinic.
All these, peg the annual running cost of a dental practice at US$443000 which is a US$37000 monthly expense.
Read Related: Your Quick Guide to Opening a Bank Account in Vietnam
How Can InCorp Vietnam Assist?
InCorp Vietnam certified and trained experts have all the experience needed to assist you in opening a dental practice in Vietnam fulfilling all regulatory requirements. We are a pioneer company formation firm in the country with a team of expert advisors and consultants who have helped foreign investors set up business for years.
Our experts ensure your dental clinic is set up without much hassle as we sort out all legal processes and documents including registration and memorandum article creation in a timely and affordable manner.
Get in touch if you want our services for opening an efficient dental clinic in Vietnam.
We made the most detailed step-by-step guide for Company Incorporation in Vietnam for investors, now available as an interactive checklist:
About Us
InCorp Vietnam is a leading market entry and corporate services firm in Vietnam. We are part of InCorp Group, a regional leader in corporate solutions that encompasses 9 countries in Asia-Pacific, headquartered in Singapore. With over 1,500 legal experts serving over 20,000 Corporate Clients across the region, our expertise speaks for itself. We provide transparent legal consulting, setup, and advice based on local requirements to make your business fit into the market perfectly with healthy growth.
Don’t take our word for it. Read some reviews from some of our clients.
