Vietnam is entering a new phase of economic development. After several decades of rapid industrialization, export growth and foreign investment, the country is now positioning itself for a more ambitious transformation: becoming an upper-middle-income economy by 2030 and a high-income economy by 2045.
For foreign companies, this creates a strategic window of opportunity.
In 2025, Vietnam’s economy reached approximately USD 514 billion in GDP and attracted more than USD 38 billion in registered foreign direct investment. Exports also continued to expand, reaching around USD 475 billion, confirming Vietnam’s role as one of Asia’s most dynamic manufacturing and trading economies.
Looking ahead, the Vietnamese government has set a very ambitious growth agenda for 2026 and beyond. While international institutions remain more conservative in their projections, the direction is clear: Vietnam wants to accelerate growth, move up the value chain, modernize its institutions and strengthen the role of the private sector.
This ambition is supported by major reforms. Vietnam has been streamlining its administrative system, reducing the number of provinces and cities from 63 to 34, simplifying government structures and pushing for faster, more efficient decision-making. At the same time, new policy directions emphasize private sector development, digital transformation, infrastructure investment and higher-value industries.
For investors, entrepreneurs, manufacturers and foreign SMEs, Vietnam is no longer only a low-cost manufacturing destination. It is becoming a broader platform for market entry, sourcing, production, technology, services and long-term investment.
However, success in Vietnam requires preparation. Company registration, business licences, banking, taxation, hiring, site selection and local partnerships all need to be carefully structured from the beginning.
This guide provides an overview of the key elements foreign companies should consider when doing business in Vietnam.
To help you explore each topic in greater depth, we’ve created a series of dedicated guides, all updated for 2026, covering the key aspects of doing business and investing in Vietnam.
Why Foreign Businesses Choose Vietnam Few markets in Asia currently combine as many favorable business fundamentals as Vietnam. The country benefits from ongoing supply chain diversification, rising domestic consumption, increasing foreign investment and a strong commitment to economic modernization. At the same time, Vietnam remains one of the region's most open economies, with deep integration into global trade networks and a growing role in international manufacturing. These structural advantages continue to attract companies looking not only for short-term opportunities, but also for a long-term presence in Southeast Asia.
Strategic Location
Located at the heart of Southeast Asia, Vietnam provides convenient access to ASEAN markets, China, Japan and South Korea. Its extensive coastline and growing port infrastructure support both regional trade and global exports.
Manufacturing Powerhouse
Vietnam has become one of the world's leading manufacturing destinations across sectors such as electronics, furniture, textiles, footwear, consumer goods and industrial products. The local industrial ecosystem continues to expand as companies diversify their supply chains.
Young and Competitive Workforce
With a population exceeding 100 million and a median age of around 33 years, Vietnam offers a large labor pool with increasing technical and managerial capabilities. The country continues to invest heavily in education, vocational training and workforce development.
Growing Domestic Market
Vietnam's expanding middle class and rising purchasing power are creating opportunities across retail, healthcare, education, technology, financial services and consumer goods. Many investors now view Vietnam as both a production base and a consumer market.
Extensive Trade Agreements
Vietnam has one of the most comprehensive networks of free trade agreements in Asia, including EVFTA, CPTPP and RCEP. These agreements provide preferential access to major global markets and strengthen Vietnam's attractiveness as an export platform.
Reform and Growth Ambitions
Vietnam's next phase of development is focused on moving up the value chain. Investments in infrastructure, industrial upgrading, innovation and digitalization are creating new opportunities across manufacturing, technology and services.
Setting Up a Business in Vietnam
Foreign investors can establish different types of legal presence in Vietnam depending on their activity, ownership structure and long-term objectives.
Common options include:
- Foreign-owned company
- Joint venture
- Representative office
- Branch office
- Project-based investment structure
The right structure depends on what the company wants to do in Vietnam.
A sourcing office, a trading company, a manufacturing operation, a consulting business and a retail business may all face different requirements.
Before setting up, foreign investors should review:
- Permitted business activities
- Foreign ownership restrictions
- Capital requirements
- Licensing procedures
- Tax implications
- Operational needs
Related resources
- Company Registration in Vietnam
- Business Licences and Permits in Vietnam
- Investor Visas and Temporary Residence Cards
- Business Banking in Vietnam
- Corporate Taxation in Vietnam
Company registration is only one part of doing business in Vietnam.
Some sectors require additional licences or approvals before the company can operate legally. This is especially important for activities such as trading, import-export, education, healthcare, food, logistics, e-commerce and certain regulated services.
Foreign investors should not assume that obtaining a company registration certificate is enough. In many cases, the real challenge is understanding which additional permits are required after incorporation.
Understanding Vietnam’s Business Environment
Vietnam offers significant opportunities, but it is not always an easy market to navigate. Foreign companies often face challenges related to:
- Administrative procedures
- Local partner selection and qualification
- Regulatory interpretation
- Language and communication
- Contract enforcement
- Payment terms
- Talent retention
At the same time, Vietnam is a relationship-driven business environment where trust, local presence and long-term commitment matter. Companies that succeed are usually those that combine international standards with practical local execution.
Related resources
- Advantages and Challenges of Doing Business in Vietnam
- Business Culture, Myths and Misconceptions
- Vietnamese for Business, Negotiation and Factory Visits
Choosing the Right Location Vietnam is not one single business market. The choice of location has a direct impact on costs, recruitment, logistics, suppliers, customers and access to government support.
Ho Chi Minh City and Southern Vietnam
Ho Chi Minh City remains Vietnam’s main commercial hub. It is particularly relevant for trading, services, consumer markets, startups, regional headquarters and business development. Nearby provinces such as Binh Duong, Dong Nai and Long An are important industrial and manufacturing locations.
Hanoi and Northern Vietnam
Hanoi is the political capital and a key location for companies that need government relations, regulatory access or proximity to northern industrial clusters. Northern provinces such as Bac Ninh, Hai Phong, Hai Duong and Thai Nguyen have become important centers for electronics, engineering and export manufacturing.
Central Vietnam
Da Nang and central provinces offer opportunities in technology, tourism, services and selected manufacturing activities. The region can be relevant for companies looking for a balance between cost, talent and quality of life.
Industrial Parks and Site Selection
Vietnam has developed hundreds of industrial parks across the country. These zones differ significantly in infrastructure, cost, labor availability, incentives, logistics access and supplier ecosystems.
For manufacturing investors, site selection is one of the most important early decisions.
Related resources :
- Best Business Locations in Vietnam
- Ho Chi Minh City Business Guide
- Site Selection and Industrial Parks in Vietnam
Vietnam at a Glance
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Building and Managing a Team
Vietnam offers a young and increasingly skilled workforce. This is one of the country’s strongest advantages for foreign companies.
However, hiring in Vietnam requires a good understanding of the local labor market, salary expectations, employment contracts, social insurance and retention challenges.
Foreign companies can build teams in several ways:
- Direct hiring through a local entity
- Employer of Record solutions
- Contractor-based arrangements
- Local management teams
- Outsourced operational support
The right model depends on whether the company is testing the market, opening a representative office, setting up a subsidiary or building a long-term operational base.
Related resources
- Hiring and Recruiting Employees in Vietnam
- Employer of Record and Workforce Solutions
- Business Visas and Work Permits
The Foundations of Doing Business in Vietnam
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1
Market Entry & Site Selection
Before establishing a company, businesses should evaluate the most suitable location based on their industry, target market, workforce requirements, supply chain ecosystem and operational costs. Vietnam offers significant differences between regions, industrial zones and business hubs.
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2
Company Registration
Choosing the right legal structure is a critical first step. Foreign investors can establish wholly foreign-owned companies, joint ventures, representative offices or other structures depending on their activities and long-term objectives.
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3
Licences & Permits
Many industries require additional approvals beyond company registration. Trading, manufacturing, education, healthcare, logistics and food-related activities often require sector-specific licences before operations can begin.
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4
Banking & Taxation
Setting up banking relationships, understanding capital contribution requirements and complying with Vietnam's tax framework are essential to ensuring smooth business operations and regulatory compliance.
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5
Hiring & Workforce Development
Vietnam's workforce is one of its key strengths. Companies must understand local recruitment practices, employment regulations, compensation expectations and talent retention strategies when building a local team.
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6
Business Development & Partnerships
Whether entering the market through distributors, customers, strategic partners or suppliers, developing the right local network is often a decisive factor in achieving sustainable growth in Vietnam.
A Gateway to Southeast Asia
With direct access to ASEAN markets, strong trade connectivity and growing regional influence, Vietnam is increasingly becoming a strategic base for companies looking to establish a presence across Southeast Asia rather than serving a single market.
Market Entry and Business Development
Many foreign companies begin their Vietnam journey with market validation before committing significant capital.
This may include:
- Market research
- Competitor mapping
- Partner identification and qualification
- Distributor selection
- Business delegations
- Local stakeholder meetings
A structured market-entry approach helps companies avoid relying only on desk research. In Vietnam, direct engagement with local companies, associations, distributors, manufacturers and decision-makers is often essential.
Related resources
- Business Delegations and Market Entry Programs
- Partner and Distributor Search
- Factory Visits and Market Discovery Trips
Investing in Vietnam
Vietnam’s investment story is broader than public markets or real estate. It includes the country’s long-term transformation into a higher-value economy.
Investors are increasingly looking at opportunities in:
- Capital markets
- Manufacturing
- Healthcare
- Education
- Technology
- Construction
- Automotive
- Logistics
- Consumer sectors
This creates opportunities not only for financial investors, but also for companies that can bring technology, expertise, capital, products, services and operational know-how.
Related resources
- Investing in Vietnam
- Vietnam Capital Markets
- High-Growth Industries in Vietnam
How MoveToAsia Supports Foreign Companies
MoveToAsia supports foreign companies entering, operating and sourcing from Vietnam. Our work combines international business understanding with practical execution on the ground.
Our role is to help foreign companies reduce uncertainty, avoid common mistakes and move faster with reliable local support.
Considering Vietnam for Business or Investment?
Whether you are evaluating Vietnam as a manufacturing base, a market-entry destination or a long-term investment opportunity, the first step is to understand the landscape clearly.
Contact MoveToAsia to discuss your project and identify the most practical way to move forward.
Go deeper with our 2026 guides on doing business, investing, and sector-specific sourcing and manufacturing opportunities in Vietnam.