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Quick guide to investing in Vietnam

Quick guide to investing in Vietnam

Vietnam has been one of Asia’s fastest growing economies – thanks to its astute investment in human capital and infrastructure combined with trade liberalisation.

Top exports

Phones and accessories

Phones and accessories

Electronic goods, computers and parts

Electronic goods, computers and parts

Machinery

Machinery

Textile and sewing products

Textile and sewing products

Footwear

Footwear

Wood and wooden products

Wood and wooden products

How to set up a business in Vietnam

  • Steps
  • Details
Steps Details
Obtain an investment licence from the Department of Planning and Investment (DPI) or Management Authority of Industrial Zones.

A company in Vietnam may have 100 per cent foreign ownership, unless it operates in a sector that has conditions for foreign investment. In such cases, foreign ownership is either prescribed by law or capped at 49 per cent.

Required documents:

  • Application forms with project details from investor
  • Two-year financial statements, or commitment of financial support from parent company or financial institutions or guarantee from investor’s financial capacity
  • MOU or contract on land or office leasing
  • Business corporation contract
  • Personal identification (passport or ID card)
Apply for Investment Registration Certificate (IRC) from DPI or Management Authority of Industrial Zones

Approval period

  • Estimated 15 days for general projects
  • Estimated 40 days for projects which require Investment In-Principle Approval from Provincial People’s Committee
  • Estimated 45 days for major projects which require Investment In-Principle Approval from Prime Minister
Apply for Enterprise Registration Certificate (ERC) from DPI

Approval period

  • Estimated three business days
Start business

Commence business upon approval.
Steps
Obtain an investment licence from the Department of Planning and Investment (DPI) or Management Authority of Industrial Zones.
Apply for Investment Registration Certificate (IRC) from DPI or Management Authority of Industrial Zones
Apply for Enterprise Registration Certificate (ERC) from DPI
Start business

Taxes and incentives

Taxes
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In Vietnam, the personal income tax varies between 5 to 35%, while the standard corporate tax is 20%.

Incentives granted are based on sectors, locations and company size. They vary in amount and period.

Large manufacturing project incentives

  • Corporate tax rate of 10 per cent for 15 years
  • Large manufacturing projects with investment capital of at least VND6 trillion being disbursed within three years from the date of investment licence, and no later than three years from the year generating revenue, meeting one of the following conditions:
    • having at least 3,000 full-time employees or;
    • making at least VND10 trillion in revenue per year



Special investment incentives

  • Corporate tax rate of 5-10% for 15-37.5 years
  • Tax exemption up to six years
  • 50% reduction of preferred corporate tax rate for up to 13 years
  • Special preferential investment projects can apply for the relevant based on the following criteria:
    • Criteria 1: Investment projects to establish innovation centres or research and development (R&D) centres with total investment from VND3 trillion and at least VND1 trillion disbursed within three years.
    • Criteria 2: Investment projects in the business line eligible for special investment incentives with total investment from VND30 trillion and at least VND10 trillion disbursed within three years.
Planning to invest in Vietnam?

Planning to invest in Vietnam?

UOB has signed a Memorandum of Understanding (MOU) with Vietnam’s Foreign Investment Agency (FIA) since 2015, as part of the joint effort to promote foreign direct investments into Vietnam.

Under the collaboration, FIA will provide dedicated resources at their Investment Promotion Centres (IPCs) located in North, Central and South Vietnam to work directly with UOB's Foreign Direct Investment (FDI) Advisory Unit to assist companies looking to invest into Vietnam.

Get in touch

Further resources

Relevant government agencies
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Foreign Investment Agency (FIA)
The Foreign Investment Agency (FIA) is an agency under the Ministry of Planning and Investment (MPI) which oversees Vietnam’s direct investment activities abroad and foreign direct investment activities in the country.

Visit FIA’s website

Investment Promotion Centre (IPC)
Investment Promotion Centres (IPC) – Southern and Northern Vietnam (IPCS and IPCN) are units under FIA to promote investment into the South, Central and North Vietnam.

The IPCs have a representative office in Da Nang to support foreign investment into Central Vietnam.

Visit IPC South Vietnam’s website

This fact sheet is given on a general basis without obligation and is strictly for information only. Nothing in this fact sheet constitutes accounting, legal, regulatory, tax or other advice. This fact sheet is not intended as an offer, recommendation, solicitation, or advice to purchase or sell any investment product, securities or instruments. Although reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this fact sheet, UOB and its employees make no representation or warranty, whether express or implied, as to its accuracy, completeness and objectivity and accept no responsibility or liability for any error, inaccuracy, omission or any consequence or any loss or damage howsoever suffered by any person arising from any reliance on the information in this fact sheet.