Vietnam Company Incorporation Guide 2025 — The Smart Gateway to ASEAN Expansion

Planning to expand your business into Vietnam? You’re in the right place.Vietnam Company Incorporation has become one of the most strategic moves for investors seeking stable growth, low operating costs, and access to ASEAN’s 600-million-person market.

In this comprehensive 2025 guide, we explore how to set up a business in Vietnam, the latest policy updates, cost advantages, and why the country continues to outperform its regional competitors.

Gateway to ASEAN growth through Vietnam Company Incorporation.

1. Vietnam Company Incorporation and FDI Growth in 2025

Vietnam’s economic strength continues to attract global capital. In the first half of 2025, FDI inflows reached US $21.51 billion, a 32.6 % increase year-on-year. Disbursed FDI — actual investment implemented — reached US $6.74 billion, the highest in five years.

By September 2025, total registered FDI hit US $28.54 billion, up 15.2 % compared with 2024. These figures reaffirm investor confidence and highlight why Vietnam Company Incorporation is not just an administrative choice but a growth strategy.

FDI Performance Indicators	2024	2025	Growth %
Registered Capital (bn USD)	16.22	21.51	+ 32.6 %
Disbursed Capital (bn USD)	6.28	6.74	+ 7.3 %
No. of New Projects	1554	1 940	+ 24.8 %

Vietnam’s continued inflow of foreign capital strengthens its industrial infrastructure, skilled labor base, and service ecosystem — all crucial pillars supporting successful company incorporation.

2. Legal Framework for Vietnam Company Incorporation

Establishing a foreign-owned business in Vietnam involves two main stages governed by the Law on Investment 2020 and Law on Enterprises 2020 (amended 2025):

Stage	Certificate Issued	Purpose	Processing Time
Step 1	Investment Registration Certificate (IRC)	Approval for foreign investment activities	7 – 10 working days
Step 2	Enterprise Registration Certificate (ERC)	Establishes legal status of the enterprise	3 – 5 working days

Since 2024, the entire process can be completed online via the National Business Registration Portal, cutting average incorporation time to around 10–12 working days. Digital signatures and e-certificates are now recognized as legally binding, streamlining Vietnam Company Incorporation for cross-border founders.

The Ministry of Planning and Investment also introduced English-language guidance for foreign entities, reducing translation errors and bureaucratic delays.

3. Vietnam’s Competitive Cost Advantage

One of the biggest reasons investors choose Vietnam Company Incorporation is cost efficiency.Vietnam offers world-class manufacturing capability with labor and logistics costs far lower than its neighbors.

Country	Average Monthly Operating Cost (USD)	Labor Cost Index	Office Rent (USD/ m²)
Vietnam	79 280	100 (base)	30 – 45
Thailand	142 344	170	60 – 70
Malaysia	210 850	180	55 – 65
Singapore	366 561	300 +	110 – 150

Labor costs in Vietnam average US $2.99/hour, compared to US $6.50/hour in China and US $12.40/hour in Singapore. This cost gap makes Vietnam one of Asia’s most profitable bases for manufacturers and service exporters.

Additionally, the yield on cost (YoC) for data-center investment in Vietnam is 17.5–18.8 %, second only to Singapore, showing that even high-tech industries benefit from favorable margins.

4. Tax Incentives and Investment Reforms

Vietnam has modernized its corporate tax regime to attract sustainable and high-tech investments. Under the new Corporate Income Tax Law No. 67/2025/QH15, effective October 1 2025, tax brackets are harmonized to align with the OECD Global Minimum Tax standards.

Newly incorporated companies enjoy:

• CIT rate reductions to 10–15 % for priority sectors (renewables, R&D, digital tech).

• Tax holidays up to 4 years + 9 years at 50 % reduction for eligible zones.

• 0 % import duties on machinery used for export production.

These incentives, combined with simplified reporting procedures and e-invoicing systems, make Vietnam Company Incorporation one of the most cost-effective setups in Asia.

5. Strategic Position and the “China + 1” Advantage

Vietnam’s geographic location at the center of ASEAN, its 17 active free-trade agreements, and its proximity to China create unmatched logistics efficiency. Many global manufacturers are shifting supply chains to Vietnam to diversify production and mitigate trade risks.

Labor productivity is improving, infrastructure investment is accelerating, and digital transformation is expanding into customs, banking, and e-governance — all of which ease post-incorporation operations.

By establishing your entity through Vietnam Company Incorporation, you secure access not only to Vietnam’s domestic market but also to over 87 % of global GDP via trade agreements.

Conclusion

Vietnam Company Incorporation in 2025 offers an extraordinary blend of cost efficiency, market reach, and policy stability. The surge of FDI, competitive labor costs, robust infrastructure, and tax reforms position Vietnam as Asia’s new center for sustainable growth.

For investors seeking a transparent, scalable, and profitable gateway into Southeast Asia, Vietnam is not just an option — it’s the smart move.

Your Business Deserves Real Legal Minds

Vinex offers expert legal and business solutions tailored to Vietnam:

• Company Formation: Register LLC or JSC, secure ERC/IRC in 1-3 months.

• Legal and Tax Advisory: Ensure compliance with transshipment tariffs Vietnam China and local regulations.

• Banking and Accounting: Set up accounts, optimize financial reporting.

• Secretarial Services: Manage documentation and certifications. Contact Vinex at +84 98 1111 811 or contact@vinex.com.vn to launch your Vietnam venture.