How to Set Up a Singapore Company in Vietnam 2025

As of 2025, Vietnam continues to be a thriving market for foreign investment, with an increasing number of international businesses looking to establish a presence in this rapidly developing economy. Singapore, being one of the leading business hubs in Asia, is no exception. Many Singaporean companies are eyeing the potential of the Vietnamese market, attracted by its strategic location, young and dynamic workforce, and growing consumer market.

This article will guide you through the essential steps of setting up a Singapore company in Vietnam, covering legal, regulatory, and practical considerations to ensure a smooth establishment process.

Why Choose Vietnam for Your Singapore Company?

Vietnam has become one of the most attractive investment destinations in Southeast Asia. Here are some key reasons why Singapore companies are increasingly turning to Vietnam for expansion:

Strategic Location: Vietnam is strategically positioned in the heart of Southeast Asia, offering easy access to other markets in the region, including China, Thailand, and Cambodia.

Young Workforce: With a median age of around 30, Vietnam offers a vibrant, well-educated, and cost-effective workforce.

Growing Consumer Market: Vietnam’s expanding middle class and increasing purchasing power create a promising market for both B2B and B2C businesses.

Government Incentives: The Vietnamese government provides various tax breaks, subsidies, and investment incentives for foreign businesses, particularly in sectors like technology, manufacturing, and renewable energy.

Step-by-Step Guide to Setting Up a Singapore Company in Vietnam

1. Choose Your Business Structure when Establishing a Singapore Company

Before you begin the process, it’s essential to decide on the most suitable business structure for your Singapore company in Vietnam. The most common options for foreign investors are:

Wholly Foreign-Owned Enterprise (WFOE): This is the most common structure for foreign investors, allowing full ownership of the company.

Joint Venture (JV): A partnership with a local Vietnamese company or individual. This structure can provide you with local market knowledge and regulatory advantages.

Branch Office: A branch of the Singapore company, which allows you to extend your operations in Vietnam without creating a separate legal entity.

Representative Office: This is a non-commercial presence that can be used for market research, business liaison, and other non-transactional activities.

2. Register Your Business when Establishing a Singapore Company

To establish a business in Vietnam, you must register your company with the Vietnamese Department of Planning and Investment (DPI). This process involves several key steps:

Name Reservation: Ensure that the name of your Singapore company complies with Vietnam’s naming regulations and is unique.

Prepare Required Documents: These may include your company’s charter, proof of identity for the directors, business plan, and other relevant documents.

Submit Application: Submit your application for business registration to the DPI. The approval process can take anywhere from 7 to 15 days.

Obtain Business License: Once your company is registered, you will receive a business license, allowing you to operate legally in Vietnam.

3. Open a Bank Account when Establishing a Singapore Company

After registering your company, you will need to open a corporate bank account with a local bank in Vietnam. This account is necessary for managing your business finances, making payments, and fulfilling tax obligations. Some of the most popular banks for foreign companies in Vietnam include Vietcombank, VietinBank, and BIDV.

4. Hire Employees when Establishing a Singapore Company

Vietnam has a highly skilled and cost-effective workforce, with many qualified professionals fluent in English. As a foreign company, you will need to comply with Vietnam’s labor laws, including signing employment contracts, paying social insurance, and following labor regulations.

The Vietnamese labor market is relatively flexible, and wages are lower compared to regional neighbors, making it an attractive destination for businesses looking to minimize operational costs.

5. Comply with Tax and Accounting Requirements

Vietnam’s tax system can be complex, so it is important to understand the tax obligations for foreign businesses. The corporate income tax (CIT) rate in Vietnam is typically 20%, although certain industries may be eligible for tax incentives. In addition to CIT, you will also need to comply with value-added tax (VAT), personal income tax (PIT), and other local taxes.

Vietnam has strict accounting and reporting requirements, and foreign companies must maintain detailed financial records and submit annual tax returns to the General Department of Taxation.

6. Understand Regulatory and Licensing Requirements

Certain industries in Vietnam require specific licenses or permits before a company can start operations. For example, businesses in sectors like finance, real estate, healthcare, and education are subject to additional regulatory scrutiny. It is essential to research the licensing requirements for your specific industry to ensure compliance.

7. Consider Business Operations and Expansion Plans

Once your company is established, consider strategies for growth and expansion in the Vietnamese market. This might involve market research, digital marketing, forming partnerships with local businesses, or expanding your product/service offerings.
It is also advisable to seek local legal and business advice to navigate any complex regulatory or cultural challenges in the market.

Challenges to Consider When Setting Up a Singapore Company in Vietnam

While the business environment in Vietnam is generally favorable for foreign investors, there are some challenges that you may encounter, such as:

Language Barrier: While English is widely spoken in urban areas, many business dealings still occur in Vietnamese. Hiring bilingual staff or working with local consultants can help mitigate this issue.

Regulatory Complexity: Vietnam’s legal and regulatory framework can be complex, especially in certain sectors. It’s essential to have local legal counsel to ensure full compliance.

Cultural Differences: Understanding Vietnamese business culture and customs is crucial for establishing strong relationships with local partners, clients, and employees.

Why Choose La Défense Law Firm for Foreign Investment Consulting?

Setting up a company in Vietnam as a foreign investor can be challenging, but with the right legal guidance and local expertise, you can successfully navigate the process. La Défense Law Firm specializes in providing comprehensive foreign investment consulting services, assisting international clients in establishing and expanding their businesses in Vietnam.

Why Clients Choose La Défense Law Firm:

Expertise in Foreign Investment Law: With years of experience in the Vietnamese market, La Défense’s team is well-versed in all aspects of foreign investment regulations, ensuring that you comply with local laws and avoid costly mistakes.

Tailored Legal Solutions: La Défense offers customized legal solutions based on the unique needs of each client. Whether you are setting up a wholly foreign-owned enterprise, a joint venture, or a branch office, they provide strategic advice to optimize your business structure.

Comprehensive Service: From business registration to tax planning and dispute resolution, La Défense provides a full range of services to ensure that your investment in Vietnam is successful.

Deep Local Market Knowledge: With extensive local knowledge and experience, La Défense can help you navigate Vietnam’s complex regulatory environment, industry-specific regulations, and cultural nuances.

Professional and Reliable: La Défense is known for its professional, transparent, and reliable approach to legal services, earning the trust of both multinational corporations and small businesses alike.

If you are a Singaporean company looking to enter the Vietnamese market, La Défense Law Firm is your trusted partner in navigating the complexities of foreign investment, ensuring that your business establishes a solid foundation for success.

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