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Key Takeaways Vietnam offers economic growth, young, skilled labor and strategic regional connectivity for international businesses.
Company incorporation is flexible with full foreign ownership, minimal share capital and straightforward entity options.
Foreign investors must navigate licensing steps like the IRC, ERC, tax, invoicing and compliance.
We are seeing growing interest from international businesses looking to incorporate a company and do business in Vietnam. Based on my recent experiences helping businesses with set up in Vietnam, I look at the benefits of incorporating in Vietnam.
As Director at MSA Asia, I support international businesses to set up and manage the financial and regulatory side of their Asia operations. Historically, global businesses have often chosen China as a base for manufacturing or export, and Hong Kong or Singapore for financial and investment vehicles. But this is starting to change, with higher costs in those jurisdictions driving businesses to seek out other regional hubs.
Multiple locations also hedge against the risk of changing trade rules and economic difficulties in any one location (the oft-cited ‘China+’ strategy). Vietnam has emerged as one of Asia’s most attractive destinations for entrepreneurs and foreign investors looking for that ‘2nd home’ in Asia.
I was recently approached by a US-based consulting firm seeking to establish a Vietnam subsidiary for offshore delivery, but was confused about how to manage the set-up and compliance. In supporting them through the incorporation of a 100% foreign-owned Vietnam subsidiary, alongside a compliant invoicing system, I thought it might be helpful to other businesses if I set out the key steps for Vietnam market entry.
Why incorporate in Vietnam?
Vietnam has a lot of appeal to growing businesses: It has a population of over 100 million, a young and skilled workforce and strong GDP growth driven by exports, technology and services. Key business hubs such as Ho Chi Minh City and Hanoi offer access to talent, infrastructure and international connectivity.
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