FOREIGN-INVESTED COMPANY ESTABLISHMENT SERVICES IN VIETNAM (2026): KEY DRIVERS BEHIND THE RELOCATION OF SUPPLY CHAINS TO VIETNAM
As global supply chains continue to shift in response to geopolitical tensions, rising production costs, and the need for diversification beyond traditional manufacturing hubs, Vietnam has emerged as one of the most attractive destinations for foreign investors. With its strategic location in Southeast Asia, competitive labor force, expanding network of free trade agreements, and investor-friendly policies, Vietnam is increasingly becoming a preferred choice for multinational enterprises seeking to relocate or expand their operations. These favorable conditions have significantly accelerated the establishment of foreign-invested companies in Vietnam, particularly in manufacturing, logistics, technology, and supporting industries.
Prospective clients seeking assistance with procedures for establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh Law Firm via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Law Firm provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
Below is a summary of the 4 main stages of setting up an LLC / FIE.
- In rare cases where an investor intends their LLC/FIE to do business in a specified special sector, they may be required to fulfil Step 1 ‘Pre-Investment Approval’.
- Most investors can skip directly to Step 2, to apply for a required Investment Registration Certificate (IRC).
- Once the IRC is in hand, an organization may pursue to subsequent Step 3 to apply for an Enterprise Registration Certificate (ERC, also referred to as a Business Registration Certificate) as well as dependent actions such as securing a physical business address, and so on.
- After being licensed, the Enterprise will be required to register their company seals, open bank accounts, and more.
This can be diagrammed as follows:
I. Strong Economic Growth and Strategic Location
Vietnam has become one of the fastest-growing economies in Asia, maintaining impressive GDP growth rates for many consecutive years. The country continues to attract significant foreign direct investment thanks to its stable political environment, expanding industrial sector, and investor-friendly policies. Even during periods of global economic uncertainty, Vietnam has demonstrated strong resilience and long-term growth potential.
Located in the heart of Southeast Asia and close to major manufacturing hubs such as China, Vietnam offers businesses excellent access to regional and global markets. Its strategic position allows companies to strengthen supply chain connectivity, reduce transportation costs, and diversify manufacturing operations more efficiently.
II. Demographics
Vietnam’s middle class is expected to reach 95 million by 2030 with an average GDP per capita of US$7,000 by 2035. Vietnam’s middle class is also spreading to other areas apart from traditional hubs like Hanoi and Ho Chi Minh City. In addition, the female participation rate is one of the highest even trumping more developed countries like the US and Singapore.
III. Political climate
Vietnam is a social republic and a one-party state, which has allowed for political stability. This has also translated to a stable business environment allowing businesses to thrive.
IV. Vietnam’s Free Trade and Double Tax Agreements
Free Trade Agreements
Vietnam acceded into the World Trade Organization (WTO) in 2007 and is a committed trading partner with the global community today.
Vietnam is a party to 16 active and 2 others in negotiations of planned free trade agreements (FTAs) making it one of the most open economies in South East Asia. Three recent powerhouse agreements that provide additional push factors for businesses to move their supply chains into Vietnam include:
- The Regional Comprehensive Economic Partnership (RCEP);
- The European Union Vietnam Free Trade Agreement (EVFTA);
- The UK-Vietnam Free Trade Agreement (UKVFTA).
Including and beyond these agreements, Vietnam’s bilateral and multilateral Free Trade Agreements connects it with dozens of countries and regions including: Australia, Brunei, Burma, Cambodia, Canada, Chile, China, Indonesia, Japan, Laos, Malaysia, Mexico, New Zealand, Philippines, Singapore, South Korea, Thailand, United Kingdom, Vietnam, European Union Countries, Eurasian Economic Union countries.
Vietnam is also negotiating future potential agreements the European Free Trade Association comprised of Switzerland, Norway, Iceland, and Liechtenstein (Vietnam-EFTA) and the ASEAN – Canada FTA.
Double Tax Avoidance Agreements
Double Tax Avoidance Agreements treaties effectively eliminate double taxation by identifying exemptions or reducing the amount of taxes payable in Vietnam.
More than 80 countries and territories have signed DTAs in place with Vietnam, as of 2024. These treaties eliminate double taxation through identifying exemptions or reducing tax payable in Vietnam for residents of the signatories of the agreements.
It is therefore extremely worthwhile for foreign investors to be aware of which double taxation avoidance agreements (DTAAs) between Vietnam and other countries might be applicable to their situation, as well as understand how these agreements are applied.
V. Lower costs, ease of doing business
Labor availability in Vietnam
Vietnam has a population of over 100 million people spread over 330,000 square kilometers. The country is still predominately rural, with urban centers providing a home for just 35 percent of the population. Companies entering Vietnam for the first time should account for regional variation in the labor market and invest in locations that are suitable for their industry.
Minimum Wages in Vietnam depend on location, which the government categorizes into four regions. Under the new policy effective July 1, 2024, the minimum wage ranges from VND 16,600 (US$0.65) per hour and VND 3.45 million (US$135.30) per month in Region 4, to VND 23,800 (US$0.93) per hour and VND 4.96 million (US$194.50) per month in Region 1. This adjustment, reflecting a 6 percent increase under Decree 74/2024/ND-CP, aims to improve workers’ living standards in line with the country’s economic growth and changing administrative boundaries.
Investors that take the time to explore Vietnam’s provinces will find opportunities to manage costs while maintaining productivity. Executives will benefit from understanding the cost differential between different provinces in Vietnam, but the real beneficiaries of a regional approach will be HR departments and hiring managers. HR departments that understand what Vietnam has to offer will be much better positioned to recruit, onboard, and, where necessary, train new workers.
VI. Top industries relocating to Vietnam
Vietnam is a large and diverse country with several industries thriving. As Vietnam moves from agriculture to service to high-tech manufacturing, certain industries are becoming more prominent than others due to increased investment and government incentives.
As of 2024, the total registered FDI in Vietnam reached nearly US$38.23 billion, marking a substantial 3 percent increase from the same period the previous year.
Newly registered capital reached almost US$19.73 billion, reflecting a slight drop of 7.6 percent. The number of newly registered projects also reached 3,375 projects, an increase of 1.8 percent.
As in previous years, the manufacturing and processing industry led the way, attracting over US$25.58 billion in investment, accounting for 66.9 percent of the total registered capital and a 1.1 percent increase from the previous year. The real estate business sector followed with nearly US$6.31 billion in total investment, representing over 16.5 percent of the total registered capital and a 18.8 percent year-on-year increase.
Other sectors such as electricity production and distribution and wholesale and retail secured the third and fourth positions, registering total registered capital of over US$1.42 billion and nearly US$1.41 billion respectively.
VII. Why choose Dai Quang Minh LawFirm
With years of practical experience in legal consulting, Dai Quang Minh Law Firm is a pioneer in corporate support services, specializing in fast and affordable company formation. Below are the reasons to choose business registration services at Dai Quang Minh Law Office:
Human Resources: Established in September 2009, with over 15 years of practical experience, Dai Quang Minh Law Firm brings together a team of lawyers and legal experts with long-standing expertise in private economic groups nationwide.
Consulting Policy: Clients are gifted a completely free legal consulting package when using services at Dai Quang Minh Law Firm.
Professionalism and Experience: Dai Quang Minh Law Firm has a workforce with in-depth knowledge of business formation, ensuring a swift and accurate consulting process.
Time-Saving: Using Dai Quang Minh Law Firm's services helps you save precious time as we handle the entire process and related procedures.
Legal Insight: Dai Quang Minh Law Firm ensures that all relevant legal regulations are strictly followed in accordance with the law.
Customization: Our consulting services are highly adaptable to your specific needs, allowing you to choose options suitable for your business.
Trusted Partner: Dai Quang Minh Law Firm has built a reputation for providing affordable business setup consulting to many enterprises and individuals nationwide.
Confidentiality Assurance: Dai Quang Minh Law Firm is committed to the absolute protection of your personal and business information.
Detailed Support: Dai Quang Minh Law Firm provides detailed advice and support regarding the process and requirements to help you better understand business formation.
Process Optimization: Our consulting helps optimize the business setup process, minimizing potential risks and difficulties.
Excellent Customer Experience: Dai Quang Minh Law Firm is dedicated to providing the best customer experience through professional advice and enthusiastic support.
Focus on Business Plans: By utilizing our registration services, you can focus on developing your business plans and core activities instead of worrying about legal procedures.
Prospective clients seeking assistance with procedures for establishing a foreign-invested enterprise in Vietnam are kindly invited to contact Dai Quang Minh Law Firm via Hotline: 0932 191 299; Zalo: 0932 191 299; Email: info@quangminhlawfirm.com; Viber: (+84) 337 926 405; WhatsApp: (+84) 337 926 405; WeChat: (+84) 337 926 405 (ID: pouniverse) for complimentary consultation and comprehensive, efficient, and accurate legal services.
In addition, Dai Quang Minh Law Firm provides a wide range of services, including sub-licenses, business registration, investment, foreign labor, and ongoing legal advisory services for both domestic and foreign enterprises.
Contact:
- Zalo: 0932.191.299
- Gmail: info@quangminhlawfirm.com
- Viber: (+84) 337926405/ (+84) 869672216
- WhatsApp: (+84) 337926405/ (+84) 869672216
- Wechat: (+84) 337926405 (ID: _pouniverse)/ (+84) 869672216 (ID: DQM_Verna)
- Telegram: (+84) 337926405/ (+84) 869672216
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