Doing Business in Vietnam

 

What Companies Need to Know

 

Entering or expanding into Vietnam involves more than establishing a legal entity. Companies also need to consider investment structures, licensing, employment, immigration, taxation, compliance and workforce mobility.

 

For international companies and HR teams, understanding these requirements early can help reduce administrative risks and support a more efficient market entry.

 

Can foreign companies do business in Vietnam?

 

Yes. Foreign companies can establish a presence and conduct business in Vietnam, subject to applicable investment, business registration, licensing and sector-specific requirements.

 

The appropriate structure depends on factors such as the company's activities, ownership structure, investment objectives and regulated sectors.

 

What are the main requirements for setting up a business in Vietnam?

 

Requirements vary depending on the proposed business activities and ownership structure.

 

Depending on the circumstances, companies may need to address investment registration, business registration, licensing, corporate governance, registered offices, capital requirements and tax registration.

 

Companies should determine the appropriate structure and regulatory requirements before commencing operations.

 

What compliance requirements should companies understand?

 

Companies operating in Vietnam may need to comply with requirements relating to corporate registration, employment, immigration, taxation, accounting, labor regulations, contracts, data and other sector-specific obligations.

 

Compliance requirements can change over time, making ongoing review important rather than treating compliance as a one-time setup exercise.

 

What taxes apply to businesses in Vietnam?

 

Businesses in Vietnam may be subject to different taxes and statutory obligations depending on their activities, revenue, employees, transactions and corporate structure.

 

These may include corporate income tax, value-added tax, personal income tax obligations relating to employees and other applicable taxes or contributions.

 

The actual tax position should be assessed based on the company's specific circumstances.

 

Can companies relocate employees to Vietnam?

 

Yes. Companies can relocate employees to Vietnam, subject to applicable immigration, work authorization and employment requirements.

 

A corporate relocation may involve more than arranging a visa or work permit. Housing, family support, transportation, settling-in and other practical matters can also form part of the relocation process.

 

What does corporate relocation include?

 

Corporate relocation can include planning and coordinating multiple aspects of an employee's move.

 

Depending on the assignment, services may include immigration and work authorization, temporary accommodation, home search, school search, settling-in support, transportation, family assistance and ongoing employee support.

 

A coordinated approach can help companies reduce administrative workload while providing employees with a smoother transition.

 

What should HR teams consider when relocating employees?

 

HR teams should consider the employee's role, assignment duration, immigration status, compensation, tax position, housing, family circumstances and expected relocation timeline.

 

Clear responsibilities between the employer, employee and service providers can also help avoid delays and ensure that important requirements are addressed at the right stage.

 

Why is compliance important when entering Vietnam?

 

Compliance affects more than legal risk. It can influence business continuity, employee mobility, reputation and the ability to operate efficiently.

 

Identifying regulatory requirements early allows companies to build appropriate processes rather than addressing issues after operations have already begun.

 

Need support with business and compliance in Vietnam?

 

Jardeon Group supports international companies and HR teams through Corporate & Compliance, Global Mobility and Real Estate Consultancy.

 

Support can include business and corporate advisory, immigration and work authorization, employee relocation, tax coordination, compliance support, housing and other requirements associated with establishing or expanding operations in Vietnam.

 

Planning to establish, expand or relocate employees to Vietnam? Contact Jardeon Group to discuss your requirements