Five things businesses should know before expanding into Vietnam

Vietnam's updated investment framework has simplified the incorporation process for many businesses.

Under the new regime, eligible investors can establish a legal entity earlier in the process, allowing certain registration requirements to proceed in parallel rather than sequentially. This reduces administrative delays and enables businesses to begin operational planning sooner.

However, regulated industries may still require additional approvals and sector-specific licences, making early planning essential.

Selecting the appropriate legal structure is one of the most important early decisions.

Depending on your commercial objectives, businesses may consider:

• Limited Liability Company (LLC) 
• Joint Stock Company (JSC) 
• Representative Office 
• Branch Office 

The right structure affects everything from ownership flexibility and fundraising to tax planning and future exit options. Choosing the wrong structure can result in unnecessary restructuring later.

Vietnam offers several competitive tax advantages, including a standard corporate income tax rate of 20% and a 0% withholding tax on dividends, making it an attractive location for regional investment structures.

However, businesses should also understand requirements around:

• foreign investment capital accounts 
• profit repatriation 
• transfer pricing 
• foreign contractor tax 
• global minimum tax implications 

Addressing these considerations early can help avoid costly adjustments after operations commence.

A registered company is only the beginning.

Businesses must continue to meet ongoing obligations, including accounting, tax filings, payroll, statutory reporting and corporate governance requirements.

Vietnam is also placing increasing emphasis on transfer pricing documentation, beneficial ownership transparency and post-registration compliance. Establishing robust governance processes from day one can help reduce operational risk as the business grows.

While Vietnam has introduced significant reforms, implementation can still vary across provinces and industries.

Working with experienced local advisers helps businesses navigate licensing requirements, banking processes, employment regulations and practical market considerations more efficiently.

For organisations expanding across multiple jurisdictions, having a partner who combines local expertise with regional coordination can also simplify ongoing operations.

Every business enters Vietnam with different objectives, whether establishing a regional headquarters, manufacturing operation, sales office or investment vehicle. Understanding the regulatory landscape early can help reduce delays and support a smoother market entry.

For a more comprehensive overview of Vietnam's investment environment, licensing framework, tax considerations and market entry process, download our Vietnam Market Entry Guide 2026 or speak to our local specialists to discuss your expansion plans.