Expand to Vietnam: Step-by-Step Support for FDI Enterprises Entering the Vietnamese Market

LEGAL & COMPANY FORMATION IN VIETNAM

Can foreign investors fully own a company in Vietnam?
Yes. Vietnam allows 100% foreign ownership in most sectors. However, certain industries may require joint ventures or impose ownership restrictions under specific regulations.

What legal entity options are available to foreign investors?
Foreign investors can choose from the following structures:

• Limited Liability Company (LLC)
• Joint Stock Company (JSC)
• Representative Office (RO)
• Branch Office (available in selected sectors)

What is the process to establish a foreign-owned company?
Company registration typically takes 30–45 working days, including:

• Investment Registration Certificate (IRC)
• Enterprise Registration Certificate (ERC)
• Post-licensing procedures (tax registration, seal, bank account, etc.)

Is there a minimum capital requirement?
There is no fixed minimum capital for most businesses. However, the required capital depends on your business model, industry, and licensing conditions. Certain conditional sectors (e.g., education, fintech) may require higher capital.

Do I need specific business licenses?
Yes. Conditional industries such as logistics, healthcare, or fintech require additional sub-licenses or permits before commencing operations.

Are there restricted sectors for foreign investors?
Yes. Sectors such as publishing, telecommunications, or national security may require special approvals or limit foreign ownership.

TAXATION & FINANCIAL COMPLIANCE

What is the corporate income tax rate?
The standard Corporate Income Tax (CIT) rate in Vietnam is 20%. Preferential tax rates apply for businesses operating in high-tech, renewable energy, or special economic zones.

Are there tax incentives for foreign investors?
Yes. Vietnam offers:

• CIT reductions
• Tax holidays
• Preferential treatment in high-tech parks or export-oriented zones

Does Vietnam have Double Taxation Agreements (DTA)?
Yes. Vietnam has signed DTAs with over 80 countries, allowing foreign investors to avoid paying tax twice on the same income.

Can I repatriate profits to my home country?
Yes. Profit remittance is permitted after fulfilling tax obligations and submitting a remittance report to tax authorities.

Do companies need to follow local accounting standards?
Yes. All foreign-owned businesses must comply with Vietnamese Accounting Standards (VAS). However, international standards may also be used for internal reporting.

OFFICE LOCATION & OPERATING COSTS

How much does office rental cost in Vietnam?
Office rental prices vary by city:

• Ho Chi Minh City / Hanoi: $15–$50 per sqm/month
• Co-working & shared offices are popular and flexible options for startups or SMEs

What are typical monthly operating costs?
Estimated monthly expenses include:

• Office rental
• Salaries & benefits
• Accounting & legal services
• Internet, utilities, and compliance services

Total costs vary based on business size and industry.

Where should I locate my office?
Top business locations include:

• Ho Chi Minh City – Economic and commercial hub
• Hanoi – Political and administrative center
• Da Nang – Emerging tech and logistics hub

HIRING & HUMAN RESOURCES IN VIETNAM

Is Vietnam’s talent pool competitive?
Yes. Vietnam offers a young, dynamic, and tech-savvy workforce, particularly in IT, finance, sales, and marketing.

Estimated Salaries for Key Positions (Monthly, USD):

• Office Manager / Admin Lead – $1,000–$2,000
• Accountant / Finance Executive – $600–$900
• Sales Executive / BD – $700–$1,200 + commission
• Marketing / Digital Executive – $600–$1,000
• Executive Assistant – $500–$800

Are employee benefits mandatory?
Yes. Employers must contribute to:

• Social Insurance
• Health Insurance
• Unemployment Insurance

Total employer contribution: approx. 21.5% of gross salary.

Can I outsource HR or recruitment?
Yes. Many foreign companies use HR outsourcing or RPO (Recruitment Process Outsourcing) services to reduce costs and ensure legal compliance.

How long does recruitment take?
Hiring local staff takes 2–6 weeks, depending on position and industry. Bilingual or senior roles may take longer.

MARKET ENTRY & LOCAL STRATEGY

What is the business culture like in Vietnam?
Vietnamese business culture emphasizes relationships, face-to-face meetings, and building trust. Local partnerships and credibility are critical for long-term success.

Which sales channels are most effective?

• B2B partnerships & distributors
• E-commerce & social commerce
• Local agents or representative offices
• Physical retail (for consumer products)

Should I conduct market research before entering?
Yes. Market research helps identify customer preferences, pricing benchmarks, competitor landscape, and regulatory requirements.

Can I partner with a local company?
Yes. Many foreign firms enter the market through joint ventures or commercial partnerships to benefit from local know-how.

Are there organizations that help find partners/distributors?
Yes. We work with local trade agencies, business matching platforms, and industry networks to support your partner search and due diligence.

GOVERNMENT SUPPORT & INVESTMENT INCENTIVES

Does the Vietnamese government support foreign investment?
Yes. Vietnam offers:

• Tax incentives for priority industries
• Streamlined procedures in industrial zones
• Infrastructure development in EPZs and high-tech parks

What investment incentives are available?
Incentives depend on:

• Industry (e.g., high-tech, renewable energy)
• Location (e.g., remote or developing provinces)
• Project scale and employment generation

COMPLIANCE, RISKS & ONGOING SUPPORT

What are the key compliance requirements for foreign businesses?

• Annual financial audits
• Corporate tax filings
• Social insurance & labor contracts
• Foreign investment reporting

What risks should I be aware of?
Vietnam is politically stable, but investors should consider:

• Regulatory changes
• Licensing delays
• Industry-specific restrictions

Should I use a one-stop consulting service?
Yes. Partnering with a reliable business consulting firm helps reduce setup time, ensure compliance, and optimize operational efficiency.

ESTIMATED COST TO SET UP AN SME OFFICE IN VIETNAM (YEAR 1)

Cost Optimization Tips:

• Start with a lean team and expand gradually
• Use co-working or virtual office setups
• Outsource accounting, payroll, and HR functions
• Focus on digital marketing before large-scale investments

Ready to Enter the Vietnamese Market?

At Invest Talent Consulting, we specialize in end-to-end business setup services for foreign companies entering Vietnam. From legal entity formation, licensing, and office search, to recruitment and HR outsourcing – we are your trusted partner on the ground.

Contact us for a free consultation:
Email: [email protected]
Phone/WhatsApp: +84 866 047 046

Start your Vietnam journey with confidence – let us handle the rest.