Vietnam has emerged as one of Southeast Asia's most attractive destinations for foreign investment. Supported by an extensive network of Free Trade Agreements (FTAs), ongoing economic reforms and a rapidly growing economy, the country continues to strengthen its position as a regional manufacturing and business hub.
With a young, skilled and cost-competitive workforce, Vietnam offers significant opportunities for international businesses seeking access to both local and regional markets. Rising labour costs in neighbouring countries have further enhanced Vietnam's attractiveness, leading many multinational corporations to establish operations in the country as part of their long-term growth strategy in Asia.
While certain administrative and regulatory challenges remain, Vietnam continues to offer substantial opportunities for market entry, expansion and investment across a wide range of industries.
Company Formation
Foreign investors can choose from several business structures depending on their objectives. The most common options include:
- Wholly Foreign-Owned Limited Liability Company (LLC), allowing full foreign ownership and operational control;
- Joint Venture Limited Liability Company, established together with a local Vietnamese partner;
- Joint Stock Company (JSC), suitable for larger projects requiring multiple investors and capital raising through share issuance;
- Representative Office, ideal for market research, business development and liaison activities without engaging in revenue-generating operations;
- Branch Office, available to certain foreign companies operating in specific regulated sectors.
Running a Company
Companies operating in Vietnam are subject to local accounting, tax and compliance requirements. Financial statements must be prepared in accordance with Vietnamese Accounting Standards (VAS), audited annually and filed within the prescribed deadlines.
Most businesses are subject to:
- Corporate Income Tax (CIT);
- Value Added Tax (VAT), generally levied at 10%;
- Employment and payroll-related obligations.
Why Vietnam?
Combining strong economic growth, competitive operating costs, increasing international integration and access to a dynamic consumer market of over 100 million people, Vietnam has become a preferred destination for entrepreneurs, manufacturers and international investors seeking long-term opportunities in Asia.