.svg)
Vietnam
"Vietnam provided the manufacturing base and export logistics our electronics business needed. Labor quality high, costs competitive, government support for FDI strong."
Company Formation & Foreign Investment
- 100% foreign-owned enterprise allowed in many sectors (manufacturing, export, services), subject to WTO commitments
- Joint venture with Vietnamese partners required in restricted sectors (publishing, certain retail, real estate development)
- Corporate tax 20% standard rate (15% for encouraged sectors, 10% for special zones, tax holidays available)
- VAT 10% standard (5% reduced rate for some goods/services, 0% for exports)
- Foreign direct investment (FDI) encouraged: manufacturing, export processing, technology
- Investment registration and licensing process bureaucratic but manageable with local support
- Popular for: manufacturing (electronics, textiles, footwear), export processing, regional operations
Manufacturing & Export Advantages
- Competitive labor costs (lower than China, Thailand, Malaysia; higher than Cambodia, Myanmar but better quality)
- Large workforce (100M population, median age ~32, young and trainable)
- FTAs with major markets: CPTPP (trans-Pacific partnership), EVFTA (EU-Vietnam FTA), US trade (though not FTA, substantial tariff-free access)
- Supply chain diversification: many companies shifting production from China to Vietnam (electronics, textiles, furniture)
- Export processing zones and industrial parks with infrastructure, tax incentives
- Ports (Haiphong, Ho Chi Minh City) improving for container shipping
Tax Incentives & Zones
- Tax holidays: 2-4 years full exemption + 50% reduction for subsequent years (for encouraged sectors/locations)
- Reduced corporate tax rates: 10-15% for encouraged sectors (high-tech, R&D, infrastructure, education, healthcare)
- Industrial parks and economic zones: preferential tax treatment, streamlined procedures
- Import duty exemptions for machinery, raw materials for export production
- Transfer pricing rules apply (must document related-party transactions)
Practical Considerations
- Bureaucracy significant: Business licensing, permits, compliance heavily regulated; local legal/accounting support essential
- Communist government: One-party state, government controls significant economic sectors, rule of law developing (courts less independent than Western standards)
- Corruption exists but improving (less than regional neighbors, government anti-corruption efforts ongoing)
- Infrastructure improving rapidly (roads, ports, airports, internet/telecom) but traffic in major cities (Hanoi, Ho Chi Minh City) severe
- Language barrier (Vietnamese language, English proficiency lower than Thailand/Philippines; improving among young professionals)
- Visa and work permits for expats manageable (business visa, work permit required, renewable)
- Cost of living low-moderate (affordable by Western standards)
- Best for: export-oriented manufacturing, supply chain diversification from China, regional production base
Work With Us
Take Control of Your Global Wealth and Legacy
We connect you with professionals who build structures that work, across borders, under scrutiny, and built to last.
Become a client
Become a client
Important Notice: Aventarys Group connects clients with licensed third-party professionals. We do not provide legal, tax, accounting, or financial advice. All services are delivered by independent licensed providers. Clients should consult their own legal and tax advisors before making any decisions.
