Vietnam
20% (10% for 15 years for qualifying high-tech/manufacturing)
Corporate Tax
10โ20 business days
Setup Time
VND 10 million (~$400) โ no statutory minimum for most sectors
Min. Capital
100% in most sectors (conditional sectors have limits)
Foreign Ownership
#70
Ease of Business
Vietnam has been one of Asia's fastest-growing economies for a decade โ driven by manufacturing (China+1 strategy), a young tech-savvy population of 98 million, and government openness to foreign investment. The LLC (Cong ty TNHH) allows 100% foreign ownership in most sectors and requires only nominal charter capital for most business activities. Corporate tax is 20%, with generous tax holidays for qualifying high-tech and manufacturing companies (10% rate for 15 years, plus multi-year exemptions). Vietnam is particularly compelling for manufacturing (textiles, electronics, footwear โ Samsung, Intel, and Apple suppliers are based here), e-commerce (the fastest-growing market in Southeast Asia), and tech development (competitive developer salaries at a fraction of Singapore or Japan rates). CPTPP and RCEP membership provides preferential trade access to major global markets. Setup complexity is moderate โ the Department of Planning and Investment processes applications in 10โ20 business days.
- Manufacturers implementing China+1 diversification โ Vietnam is the primary beneficiary of supply chain relocation from China
- Tech companies building cost-effective development teams with skilled Vietnamese engineers
- E-commerce businesses targeting Vietnam's rapidly growing middle class and digital consumer base
- Companies seeking CPTPP and RCEP trade benefits for exports to Japan, Australia, Canada, and EU markets
- Consumer brands entering Southeast Asia's fastest-growing retail market
Vietnam's legal framework is evolving rapidly. Tax regulations, FDI rules, and sector-specific licences change frequently โ what worked two years ago may require a different approach today. Use a Vietnam-based legal firm that actively tracks regulatory changes, not just a formation agent. The 90-day charter capital contribution deadline is strict and enforceable. Conditional business sectors (over 200 categories) require sub-licences that can add weeks or months to your operational timeline. Foreign exchange is managed through the DICA system, and converting VND profits to USD for repatriation requires proper documentation and compliance with State Bank of Vietnam regulations.
At a Glance
Available Business Structures
Cost Snapshot
Tax Overview
Banking Reality Check
Timeline: 1โ3 weeks after incorporation
Vietnam's banking sector includes major state-owned banks (Vietcombank, BIDV, VietinBank, Agribank) and international banks (HSBC, Standard Chartered, Citibank, ANZ). Foreign-invested enterprises must open a Direct Investment Capital Account (DICA) โ a dedicated account for receiving and managing foreign investment capital, denominated in foreign currency. This is separate from a regular VND operating account. Most banks require in-person visits by the legal representative. Documentation requirements include the IRC, ERC, company charter, tax registration, and legal representative identification. English-speaking bank staff are available at international banks and major Vietnamese bank branches in Ho Chi Minh City and Hanoi.
Visa & Immigration
Vietnam does not currently have a dedicated digital nomad visa or golden visa programme. Foreign investors and directors of Vietnamese companies can obtain a work permit and Temporary Residence Card (TRC) valid for up to 2 years, renewable. The work permit is sponsored by the employing company and requires a criminal background check, health certificate, and proof of qualifications. Vietnam offers visa exemption for citizens of several countries (up to 45 days). Business visas (DN1 for working, DN2 for market research) are available for shorter stays. E-visa (30 days, single entry) is available for citizens of 80+ countries.
Free Zones & SEZs
18 free zones available
Common Mistakes
Missing the 90-day charter capital contribution deadline
Fix: Vietnamese law requires charter capital to be fully contributed within 90 days of Enterprise Registration Certificate issuance. Failure to meet this deadline can result in the company being required to reduce its charter capital or face penalties. Plan your funding pipeline before applying for the ERC โ do not start incorporation until capital is ready to transfer.
Not obtaining an Investment Registration Certificate before the ERC
Fix: Foreign-invested enterprises must obtain both an IRC and an ERC, in that order. Some founders try to skip the IRC or apply for both simultaneously. The IRC is the prerequisite and must be approved by the DPI first. Allow 5โ15 business days for IRC processing before the ERC application.
Selecting incorrect VSIC business line codes
Fix: Vietnam classifies business activities using VSIC codes (Vietnam Standard Industrial Classification). Choosing the wrong codes can restrict your operations, trigger conditional business licensing requirements, or limit foreign ownership. Over 200 business sectors are classified as "conditional" and require sub-licences. Work with experienced Vietnamese legal counsel to map your actual activities to the correct codes.
Treating Vietnam as a single market and incorporating only in HCMC or Hanoi
Fix: Vietnam's economic geography is divided between the north (Hanoi โ manufacturing, government) and south (Ho Chi Minh City โ commerce, services, tech). Tax incentives, industrial zone benefits, and DPI processing times vary significantly by province. If your business involves manufacturing, the central and northern provinces (Da Nang, Hai Phong, Bac Ninh) may offer better incentives than HCMC. Research provincial investment incentives before choosing your registration location.
Frequently Asked Questions
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.