Doing Business

Tips for FDI: Why You Should Consider Doing Business in Vietnam!

Trường Lăng

November 26, 2019

Vietnam may not seem like your first choice for investment, but you would be surprised once you know that Vietnam is one of Asia’s most promising markets. As the third-largest market in Southeast Asia and one of the fastest-growing economies in the world, Vietnam has attracted many foreign investors to expand their business in Vietnam.
In this article, we present to you the top reasons why you should invest in Vietnam!

Strategic Location

Located in the center of ASEAN, Vietnam has a strategic location. It is close to other major markets in Asia, with China being the most notable neighbor. The long coastline allows access to the South China Sea and the world’s main shipping routes.
The capital city Hanoi is located at the northern end of the country is conveniently positioned for trade. Ho Chi Minh City, located in the south, is the city with the largest population and is the industrial mecca of the country. It is also one of Asia’s fastest-growing cities. Ho Chi Minh is where most business takes place in Vietnam and the industrial mecca of Vietnam.

Easy Regulations for Investing

The Vietnam government has made numerous amendments to its regulations to make investing in Vietnam more transparent. Vietnam’s ranking in terms of doing business keeps improving every year. Based on their economic models, Trading Economics predicts Vietnam to rank 60 by 2020. Hence, the future prospects of ease of doing business in Vietnam are very promising.

Stable GDP Growth

Over the last few decades, Vietnam’s economic growth has been one of the fastest in the world. This rapid development started due to economic reforms launched in 1986 and the rise has been continuous ever since.
Vietnam’s GDP grew by 6.88 percent year-on-year in the third quarter of 2018. According to the World Bank, the latest Vietnam GDP as of 2018 is 244.948 billion USD.
Source: World Bank

Young Demographic


According to Worldometers, the median age in Vietnam is 30.8 years in contrast to 37.3 years in China. Nielsen has also estimated that 60% of Vietnamese are under the age of 35.
The workforce is young and large and shows no sign of decrease. In addition, the country also invests more money in education than other developing countries. Thus, besides being vigorous, the labor force in Vietnam is skilled as well.
Source: Worldometers

Low Set-up Cost

There is no minimum capital requirement for most business lines in Vietnam. In fact, setting a high capital for registering a company in Vietnam is one of the common mistakes foreign investors do. You can start a business in Vietnam without having a great amount of charter capital in your back pocket. Just make sure you have enough funds to cover the planned expenses of your company set up and you are good to go.
Also, the amount of capital you stated must be fully paid within 90 days of the date of your company registration.

Tax Benefit

Vietnam offers several tax benefits depending on the location, industry, and business project, such as:

  • Vietnam’s free zones and industrial zones offer an exemption on corporate income taxes up to 8 years, and exemption on custom duties and VAT taxes.
  • Large manufacturing projects can apply for preferential tax incentives for up to 15 years.
  • Projects dealing with socialized sectors, such as education and health, are entitled to four years of tax exemption and 50% tax reduction for the sequential 5 years.

Do you need more information? Contact us!

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