Starting a Business in Vietnam as a Foreigner: A 2025 Guide

Vietnam is one of the most attractive countries for international investors in Southeast Asia. As a foreigner, starting a business in Vietnam has never been easier, thanks to its stable political climate, favorable tax policies, rapid digital transformation, and openness to foreign investment.

In this comprehensive guide, we’ll walk you through everything from business registration in Vietnam for foreigners to the steps for setting up a foreign company in Vietnam, along with insights into the market and a look at the list of foreign companies in Vietnam that have already paved the way.

Why Choose Vietnam to Start a Business?

Vietnam checks a lot of boxes for foreign investors:

• A strong and steadily growing economy
• Affordable labor and operational costs
• Strategic location for trade and logistics
• A digitally connected, young, and educated workforce
• Government incentives for foreign investment

And beyond the business side of things? It’s just a great place to live. Think amazing food, beautiful landscapes, and a warm, welcoming culture.

Understanding Business Registration in Vietnam for Foreigners

Business Registration in Vietnam for Foreigners

It is important that you know the legal framework before starting your own venture. The process of business registration in Vietnam for Foreigners is diverse, depends on your business model, industry type and as well as investment structure. If you are a foreigner, there are several kinds of business to choose:

1. Limited Liability Company (LLC) – Most common for small to medium enterprises. You can own 100% of the business or partner with locals.
2. Joint Stock Company (JSC) – Ideal for larger businesses or those seeking to raise capital.
3. Representative Office – Suitable for market research or liaison purposes; cannot conduct direct business activities.
4. Branch Office – Only allowed for specific sectors such as banking, insurance, or law, and subject to strict licensing.

Vietnam maintains a negative list of restricted and conditional sectors. For example, publishing, telecommunication infrastructure, and certain education services may require joint ventures or specific licenses.

Depending on your business activity, some sectors require local partnership or government approval. Make sure your business idea aligns with Vietnam’s WTO Commitments and local laws.

Steps for Setting Up a Foreign Company in Vietnam

Let’s break down the process of setting up a foreign company in Vietnam step by step:

1. Pre-Licensing Consultation

Before applying for licenses, consult with a local legal expert or business consultant. This ensures your business idea complies with regulations and helps avoid common pitfalls.

2. Investment Registration Certificate (IRC)

If you’re investing in a business with foreign ownership, you’ll need an IRC. This document approves your investment project and outlines key details like capital, business scope, and location.

3. Enterprise Registration Certificate (ERC)

Once the IRC is granted, you must apply for the ERC, which officially establishes your company as a legal entity.

4. Tax Code Registration and Company Seal

After your ERC is issued, you’ll receive a tax code and create a company seal for official documents.

5. Post-Licensing Compliance

This includes registering with the Department of Labor, opening a business bank account, leasing an office, and fulfilling tax and social insurance obligations.

The process may take 30 to 45 days if everything is in order, but timelines can vary depending on the industry and location.

Guide to Steps for Setting Up a Foreign Company in Vietnam

Business Sectors Open to Foreigners

While Vietnam has opened many sectors to foreign investors, some industries require careful navigation. Popular industries where foreign businesses thrive include:

• Manufacturing and assembly
• Information technology and software development
• E-commerce and retail
• Hospitality and tourism
• Education and training
• Import-export and logistics

Each industry may come with specific conditions, so it’s critical to seek professional guidance before finalizing your plans.

What Affects the Cost of Starting a Business in Vietnam?

There’s no one-size-fits-all answer when it comes to startup costs in Vietnam. What you’ll need to invest depends on several key factors:

• Type of business: A tech consultancy has very different needs compared to a restaurant or manufacturing facility.
• Ownership structure: 100% foreign-owned companies may face stricter licensing steps than joint ventures.
• Location: Renting an office in Ho Chi Minh City or Hanoi typically costs more than in smaller cities.
• Professional support: Hiring legal or consulting help is highly recommended—and it affects your budget.
• Declared capital: While there’s no fixed minimum, your capital should realistically cover early operations.
• Industry regulations: Certain sectors like food, finance, or education may have extra licensing or compliance costs.

At the end of the day, how much you spend will depend on what you’re building, where, and how you plan to operate. The good news? Vietnam offers flexibility for both lean startups and larger-scale ventures.

Key Factors Affecting the Cost of Starting a Business in Vietnam

List of Foreign Companies in Vietnam: Who’s Already Here?

Vietnam is already home to thousands of foreign enterprises, ranging from global giants to mid-size players and startups. Some notable foreign companies include:

• Samsung Electronics – With manufacturing plants in Bac Ninh and Thai Nguyen
• Intel – One of the largest U.S. investors in Vietnam
• Unilever – Operating multiple brands in the consumer goods space
• Toyota and Honda – Leaders in Vietnam’s automotive market
• Decathlon – Rapidly expanding retail footprint in sportswear
• Grab – Singapore-based tech company dominating the ride-hailing market

These companies demonstrate the range of opportunities across industries. Many SMEs and startups from Korea, Japan, Singapore, and Europe are also investing in Vietnam due to its high ROI potential.

Top Foreign Companies in Vietnam

Common Challenges Foreigners Face (and How to Overcome Them)

Starting a business in a new country always comes with hurdles. In Vietnam, common challenges include:

• Language barrier: Most official documents are in Vietnamese.
• Regulatory complexity: Processes can be inconsistent across provinces.
• Changing laws: Frequent updates require staying informed.
• Finding a local partner or agent: Especially important in restricted sectors.

Tip: Work with licensed legal or corporate service providers in Vietnam. Offshore Company Corp may coordinate with local partners to provide end-to-end setup support.

Conclusion

Starting a business in Vietnam as a foreigner is now not as complex and risky as it used to be. The domestic environment, including supportive government policy, infrastructure improvement infrastructure and, most importantly energetic workforce, makes the nation vibrant and offers diverse opportunities for entrepreneurs globally.

Whether you’re offering digital services, manufacturing consumer goods, or building a food & beverage brand, Vietnam’s dynamic market is ready for you. Just make sure you understand the essentials of business registration in Vietnam for foreigners and take the right legal steps to set up your foreign company in Vietnam correctly from the start.

And who knows? One day, your company could be featured on the list of foreign companies in Vietnam that are helping shape the nation’s economic future.