Is Vietnam Business-Friendly for Foreign Companies in 2026?
Is Vietnam Business-Friendly for Foreign Companies?
Vietnam can be an attractive market for foreign companies seeking customers, employees or a place in regional supply chains. Its suitability depends on the business model: an exporter working through a distributor faces different requirements from a company opening a factory or selling directly to consumers. Assess the opportunity alongside the market access, licensing and operating costs of your specific activity.
Each potential advantage comes with its own checks and matters more to some businesses than others:
Growing domestic market: Check demand for your product, your price point and your sales channel. This matters most to exporters and consumer-facing services.
Large workforce: Check skills, location, pay and training needs. This matters most to employers and manufacturers.
Regional supply-chain activity: Check suppliers, logistics, utilities and product origin rules. This matters most to manufacturers and traders.
Routes for foreign investment: Check ownership conditions, licences and ongoing costs. This matters most to companies planning direct operations.
Why Do Foreign Companies Consider Doing Business in Vietnam?
Market and Customer Demand
The National Statistics Office estimated 8.02% GDP growth in 2025. This is a national economic indicator, not a forecast for an individual product. Test your intended customers, competitors, price and location before treating growth as evidence of demand.
The US International Trade Administration’s March 2026 market guide points to opportunities for US companies in information technology, infrastructure, environmental technology, aviation and education, among other fields. For a broader framework covering inflation, labour and exchange rates, see VINEX’s guide to economic factors affecting business in Vietnam.
Workforce and Hiring
Vietnam’s labour force included 53.5 million people aged 15 and over in 2025, according to the National Statistics Office. Availability for your business still depends on the role, skills, location, pay and training required. Test the first-year hiring plan in the city or province where you intend to operate.
Supply Chains and Trade Agreements
Vietnam recorded USD 930.05 billion in total goods exports and imports in 2025, according to the National Statistics Office. Manufacturers should examine the particular suppliers, transport routes, utilities and destination markets their operation needs.
Vietnam participates in CPTPP and RCEP. A US company should check the applicable agreement and rules of origin for its actual trade route. US origin alone does not create a CPTPP or RCEP tariff preference.
Foreign Investment
Disbursed foreign direct investment reached an estimated USD 27.62 billion in 2025, according to the National Statistics Office. The figure shows investment implemented during that year; it does not predict the result of an individual project. VINEX’s overview of Vietnam FDI structures provides background on investment approaches.
Tax incentives require a separate eligibility check based on the project, sector and location.
What Makes Doing Business in Vietnam Difficult?
Each issue below comes with a due diligence question to answer for your project:
Market access: Is the precise activity open to foreign investment, and do ownership conditions apply?
Licences: What approvals are needed before this company can perform the activity?
Location: Can the proposed site support the permitted use, utilities, transport and staffing needs?
People: Can the business recruit the required skills locally, and who will employ the workers?
Tax: What taxes and transaction costs follow from the proposed sales and payment structure?
Operations: Who owns contracts, payments, intellectual property protection and compliance records?
These issues affect business models differently. The US International Trade Administration’s March 2026 guide also identifies administrative delays, tax concerns, infrastructure constraints and intellectual property protection among the challenges US businesses may face. For each issue relevant to your project, assign someone to verify the requirement and record the result before committing funds.
How Does the Answer Change by Business Model?
Export to Vietnam. The main opportunity is to test demand through a buyer, importer or distributor. First check product rules, importer responsibilities and the partner contract. A Vietnam entity may be unnecessary for the chosen arrangement.
Hire a Vietnam team. The main opportunity is to add local capacity. First check who the lawful employer is, along with supervision, payroll and the nature of the work. Whether you need a local presence depends on the employment structure.
Open a service company. The main opportunity is control over local contracts and delivery. First check market access, registered activities and operating licences. A local operating company may be appropriate.
Manufacture. The main opportunity is to join supply chains and serve selected markets. First check the site, utilities, workforce, environmental rules and project approvals. Plan for local investment and a facility.
Retail or trade directly. The main opportunity is to reach customers through local channels. First check distribution rights, product rules, licences and the sales channel. You will need a suitably authorised local operator.
These descriptions help narrow the questions. They do not replace a review of the proposed activity.
Should You Enter Vietnam Now or Test the Market First?
Ask four questions before choosing the route:
Customers: Have you identified buyers and tested the proposed price?
Conditions: Are there foreign-investor restrictions or operating licences for the activity?
Transactions: Must your business contract and invoice through a Vietnam entity?
Operations: Do you need local employees, premises or a production facility?
A suitable importer or distributor may help test uncertain demand. A business that needs direct local delivery, control of sales or a dedicated facility should assess its investment structure and full operating costs earlier.
VINEX’s view: A useful measure of “business-friendly” is whether the company has a workable path to its first compliant sale. Identify the customer, contracting party, approvals, responsible people and expected cost. Once that model is clear, use VINEX’s Vietnam Incorporation Guide for Foreign Investors to examine the relevant company structures.
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What Should a Foreign Company Verify Before Committing?
Activity and ownership: Describe exactly what the business will do and check any foreign ownership conditions.
Permissions: List the registrations and licences needed before trading.
Costs: Estimate setup, recurring operations, tax, accounting and staffing.
Location: Verify that the site supports the intended use and practical operating needs.
People: Test recruitment assumptions and decide who will employ the team.
Transactions: Map contracts, invoicing, payments, imports and responsibility for compliance.
Vietnam may be a strong choice for one model and an impractical choice for another. Base the decision on these findings and a commercial plan, rather than a single “business-friendly” score.
How VINEX Can Help
VINEX can help review a proposed Vietnam structure and coordinate incorporation, licensing and ongoing operational requirements. Share your planned activity, target customers, preferred location and hiring or import plans for an initial assessment.
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