How to Start a Business in Vietnam as an Expat (2025 Guide)

Meta Title: How to Start a Business in Vietnam as a Foreigner: Complete 2025 Expat Guide
Meta Description: Looking to launch a business in Vietnam as a foreigner? Discover the full 2025 guide: legal steps, best business ideas, visa options, taxes, banking, and cultural tips for expat entrepreneurs.

Introduction: Why Vietnam Attracts Global Entrepreneurs

In recent years, Vietnam has become one of the most dynamic economies in Asia. Once known primarily as a low-cost travel destination, the country is now attracting a new wave of expat entrepreneurs drawn by its rapid development, affordable living, and business-friendly climate.

Vietnam in 2025 offers a rare combination: a growing consumer market, relatively low competition in many sectors, and an openness to innovation and international ideas. From Ho Chi Minh City to Hanoi, and increasingly in cities like Da Nang and Nha Trang, foreign-owned businesses are thriving.

This comprehensive guide is designed to help you navigate the process of starting your own business in Vietnam, covering legal procedures, cultural expectations, business ideas, and key tools for success.

Why Choose Vietnam in 2025?

Vietnam is a compelling choice for many reasons:

• Strong economic growth and political stability

• Increasing urbanization and a growing middle class

• Low startup and operational costs

• Young, tech-savvy population

• High demand for services in tourism, education, wellness, and digital sectors

Vietnam is also well-connected regionally, with trade agreements that make it a strategic base for operations in Southeast Asia. For small business owners or self-employed entrepreneurs, the country presents a profitable opportunity to create a business that meets evolving consumer needs.

The country supports entrepreneurship through a growing ecosystem of small business administration services, business advice centers, and digital platforms to help entrepreneurs register a business, access a small business loan, or find their target market.

Business Ideas with High Potential

In 2025, several industries in Vietnam remain underexploited or are rapidly expanding, especially those where international expertise is seen as a value-add. These include:

• Travel and tourism (custom tours, heritage travel, wellness retreats)

• Food and beverage (Western bakeries, vegetarian cafés, fusion restaurants)

• Digital services (web development, marketing agencies, SaaS platforms)

• Health and wellness (yoga studios, coaching, retreats)

• Language education and tutoring

• Niche import-export businesses

These small businesses are ideal for entrepreneurs starting a business online, launching a sole proprietor operation, or incorporating a limited liability company. With proper business administration, bookkeeping, and focus on your business needs, your start-up business can become a successful and sustainable venture.

Legal Framework: How Can Foreigners Start a Business?

There are three main legal structures for expats to establish a business in Vietnam:

1. 100% Foreign-Owned Company (LLC)
   This gives you full control over your business entity. It’s a common type of business, particularly in tech, consulting, or export-focused ventures. You'll need to submit an Investment Registration Certificate (IRC), then a Business Registration Certificate (ERC). Total setup time is usually between 30 to 45 days.

2. Joint Venture with a Vietnamese Partner
   In sectors like education, restaurants, or retail, a joint venture can simplify registering and permit acquisition. This approach also helps with local insight and cultural understanding.

3. Nominee Structure
   This informal arrangement involves a Vietnamese citizen holding the business license on your behalf. While common in restricted sectors, it is risky and not officially recommended.

When starting a business, consult a business assistance agency, accountant, or secretary-of-state designated agent to ensure legal compliance and to determine whether a sole proprietorship, LLC, or limited liability partnership suits your goals.

Step-by-Step Business Setup Process

To start your business or open a new business in Vietnam, follow these key steps:

1. Choose your business idea, business name, and type of business

2. Write a business plan or use a business plan template to structure your strategy

3. Apply for the appropriate business or investor visa

4. Register for the Investment Registration Certificate (IRC)

5. Obtain the Enterprise Registration Certificate (ERC)

6. Open a Vietnamese business bank account

7. Register your business for business taxes, including revenue service identification numbers or tax ID

8. Apply for licenses, permits, or a DBA (Doing Business As) designation if applicable

This guide is designed for starting a small business or a scalable startup. You’ll find free business tools and business resources to support your incorporation, setting up a business location, and managing business administration.

Visas, Taxes, and Banking in 2025

Visas: The investor visa (DT1 or DT2) is suitable for long-term stays and can be valid up to five years. Some nationalities can also benefit from visa exemptions for stays up to 45 days.

Taxes: Corporate income tax in Vietnam is typically 20%. Personal income tax is on a progressive scale, ranging from 5% to 35%. U.S. citizens and others with worldwide income should also consult with internal revenue or federal revenue service authorities.

Banking: Foreigners can open business accounts with Vietnamese banks such as Vietcombank, Techcombank, or ACB. International services like Wise or Revolut are useful for cross-border transactions.

Cultural Factors in Doing Business in Vietnam

Understanding Vietnamese business culture is essential for long-term success. Relationships (or "quan hệ") matter significantly, and face-to-face interactions remain crucial even in a digital age. Hierarchy is respected, and subtle communication is valued over direct confrontation.

Other important points include:

• Building trust before proposing business deals

• Using formal titles and showing respect for elders and officials

• Being patient with administrative processes

• Leveraging local tools like Zalo, the most used messaging app

• Embracing coffee culture as a way to build rapport

Common Mistakes to Avoid

Many foreign entrepreneurs make avoidable errors when entering the Vietnamese market:

• Relying solely on Western business models without local adaptation

• Skipping legal due diligence or trying to bypass regulations

• Underestimating bureaucratic procedures

• Failing to account for language and cultural barriers

• Ignoring local platforms in digital marketing (Facebook and TikTok are dominant)

Useful Tools and Communities

To stay efficient and connected, leverage these resources:

• Zalo: Vietnam’s top messaging app

• Bizspective or VietnamBriefing: Legal and business services

• Facebook Groups: Digital Nomads Vietnam, Vietnam Business Network

• ChatGPT: Content creation, business ideas, legal queries

• Canva and Notion: Visual design and business planning

• Upwork and Fiverr: Hiring remote freelancers

Final Thoughts: Is It Worth Starting a Business in Vietnam?

If you're looking for a country that combines economic potential with a rich cultural experience, Vietnam is an excellent choice. However, success depends on more than just having a good idea. You’ll need patience, adaptability, and a strong local network.

Starting a business in Vietnam in 2025 can be incredibly rewarding if you approach it with the right mindset and preparation. Whether you want to build a lifestyle brand, invest in tech, or open a café by the beach, Vietnam offers the freedom and flexibility to make your entrepreneurial dream a reality. With the right marketing plan, legal structure, and community support, your startup business can evolve into a profitable and successful business.

Entrepreneurship in Vietnam is booming, and more and more small business owners are embracing this market to open a business that aligns with their values and ambitions. From managing payroll to business taxes and understanding your target market, each detail contributes to long-term business success.

Don't hesitate to create a business plan, register your business, and use every available resource to get up-and-running. Whether you’re starting my own business for the first time or expanding, the Vietnamese market is ideal for running a small business and accessing angel investors, business advice, and SBA-style services.

Frequently Asked Questions

Is it easy to start a business in Vietnam as a foreigner?
With the right preparation and legal guidance, yes. However, expect bureaucracy and cultural adaptation.

Do I need a Vietnamese partner?
No, unless you’re entering a restricted industry. In many cases, full foreign ownership is allowed.

What is the minimum capital required?
There is no official minimum for many sectors, but most businesses start with USD $3,000 to $10,000.

Can I stay long-term with a business in Vietnam?
Yes. Investor visas (DT1/DT2) allow for multi-year residence and renewal.

Which cities are best for expat entrepreneurs?
Ho Chi Minh City is best for tech and F&B. Hanoi is great for culture and education. Da Nang and Nha Trang are rising for tourism, wellness, and remote business models.