Key Takeaways
- Vietnam combines strong economic growth, a large consumer market, an expanding workforce and increasing integration with global supply chains.
- Manufacturing, technology, renewable energy, logistics, healthcare and consumer services present notable business opportunities.
- Service-based and online businesses may require less initial capital than restaurants, retail stores or manufacturing operations.
- Foreign ownership is possible in many sectors, but market-access conditions, licensing requirements and investment procedures vary by business activity.
- Vietnam’s 2025 Investment Law, effective from 1 March 2026, introduces more flexible and streamlined procedures for eligible investment projects.
Introduction
Vietnam has developed into an important manufacturing, services and consumer market in Southeast Asia. Its population of more than 100 million, growing domestic demand, participation in major trade agreements and established export-manufacturing base continue to attract local entrepreneurs and foreign investors.
However, commercial opportunity should not be confused with automatic market access. A business must assess its proposed activities, ownership structure, location, capital needs and licensing obligations before beginning operations. Foreign investors may also need investment registration, enterprise registration and sector-specific approvals, depending on the project.
What Are the Advantages of Doing Business in Vietnam?
The principal advantages of doing business in Vietnam include a growing economy, a large domestic market, a substantial workforce, competitive operating conditions in selected industries, access to regional supply chains and government policies intended to attract higher-value investment. The exact benefits depend on the investor’s sector, location, business model and eligibility for available incentives.
1. Sustained Economical Expansion
Vietnam’s recent economic performance provides a supportive environment for businesses serving domestic consumers or regional and international supply chains. Growth has been supported by manufacturing, construction, exports, services and consumer activity.
Companies should nevertheless distinguish between national economic growth and the prospects of a specific project. Demand, competition, margins, infrastructure and regulatory requirements differ considerably between industries and provinces.
STATISTIC: Vietnam’s National Statistics Office reported that real GDP increased by approximately 8.0% in 2025. The same official report recorded nearly 297,500 newly established and resumed enterprises during the year, representing a 27.4% year-on-year increase.
| 2025 indicator | Official result |
| Real GDP growth | Approximately 8.0% |
| Newly established and resumed enterprises | Nearly 297,500 |
| Increase in newly established and resumed enterprises | 27.4% year on year |
| Gross retail sales growth at current prices | 9.2% year on year |
STATISTIC-SOURCE: https://www.nso.gov.vn/en/data-and-statistics/2026/01/socio-economic-situation-in-the-fourth-quarter-and-2025/
2. A Large Workforce and Consumer Market
Vietnam had an estimated average population of 102.3 million in 2025. Its labour force aged 15 and above reached approximately 53.5 million, while the number of employed people was approximately 52.4 million.
This combination creates opportunities for both labour-intensive operations and businesses serving a large domestic consumer base. Employers should still conduct location-specific recruitment and salary assessments because labour availability, technical skills and employment costs differ between major cities, industrial provinces and rural areas.
3. Strategic Location and Trade Connectivity
Vietnam had an estimated average population of 102.3 million in 2025. Its labour force aged 15 and above reached approximately 53.5 million, while the number of employed people was approximately 52.4 million.
This combination creates opportunities for both labour-intensive operations and businesses serving a large domestic consumer base. Employers should still conduct location-specific recruitment and salary assessments because labour availability, technical skills and employment costs differ between major cities, industrial provinces and rural areas.
4. Established Manufacturing and Supply-Chain Capabilities
Vietnam has become an established production base for industries including electronics, textiles and garments, footwear, furniture, food processing and machinery. Industrial parks, export-processing zones and supporting logistics networks provide potential entry points for manufacturers and suppliers.
The country is also seeking more investment in high technology, semiconductors, innovation, renewable energy and higher-value manufacturing. Investors should evaluate electricity supply, transport access, workforce availability, land-use rights and environmental requirements before choosing a project location.
5. Continuing Infrastructural Development
Continued investment in roads, seaports, airports, electricity networks, industrial zones and digital infrastructure supports business expansion. Infrastructure quality can nevertheless vary substantially by province and location.
Companies should assess more than the advertised benefits of a proposed site. Lease validity, permitted land use, transport capacity, utility reliability, construction approvals and environmental obligations may materially affect a project’s cost and schedule.
6. Vietnam Has Solid Foreign Investment Activity
Foreign investment remains an important part of Vietnam’s economy. According to the National Statistics Office, total inward foreign investment registered during 2025 reached approximately US$38.42 billion, while disbursed foreign direct investment was estimated at US$27.62 billion.
These figures indicate continued investor interest, but they do not mean that every sector is unrestricted. Foreign investors must continue to assess ownership caps, market access commitments, extra licensing requirements, as well as prohibited and conditional industries.
How Does Vietnam Compare as a Business Location?
| Business factor | Potential advantage | Point requiring due diligence |
| Market size | Population exceeding 100 million and growing consumer demand | Purchasing power and customer behaviour differ by region |
| Workforce | Large labour pool and expanding technical capabilities | Skills, wages and employee availability vary by industry and location |
| Manufacturing | Established export and supplier ecosystems | Infrastructure, land, energy and environmental conditions require review |
| Trade access | Participation in major regional and bilateral trade agreements | Preferential tariffs require compliance with rules of origin |
| Foreign investment | Many industries permit substantial or complete foreign ownership | Conditional sectors may impose ownership, partner or licensing requirements |
| Incentives | Certain sectors and locations may qualify for tax or land incentives | Eligibility depends on the project, location, technology, scale and applicable law |
| Market-entry process | Reforms are intended to simplify qualifying investment procedures | An IRC, ERC and specialised licences may still be required |
Which Industries Offer Strong Startup Potential in Vietnam?
The industries with notable medium-term potential include renewable energy, digital healthcare, smart manufacturing, logistics, cross-border e-commerce, education technology, sustainable tourism, financial technology and innovative food products.
The most suitable sector depends on the investor’s expertise, capital and licensing capacity. Renewable-energy, healthcare and financial-services projects can involve significant regulatory and capital requirements. Technology consulting, digital services, corporate training and certain business-to-business support services may offer more accessible entry points, subject to market-access and licensing checks.
Ways We Can Render Assistance To You
Operating with truly minimal capital usually requires specialized skills, digital delivery methods, or maintaining very little stock. Possible models include:
- Software development, design or digital-marketing services
- Translation, editing or content-production services
- Business consulting or corporate training
- Online education and tutoring
- E-commerce support and marketplace management
- Small-scale delivery coordination or logistics brokerage
- Repair, maintenance or home-service businesses
- Made-to-order handicrafts or furniture restoration
- Laundry collection and delivery
- Beauty or personal-care services
Before launching, entrepreneurs need to look into corporate registration, international market access, taxes, labor policies, data privacy, customer protection, and specialized licensing rules. Food, cosmetics, education, transport, tourism, healthcare and financial services commonly require additional compliance steps.
Fast food or restaurants
Food trucks, cafés, restaurants and delivery-oriented kitchens may benefit from strong urban demand. However, these businesses are not normally low-cost once premises, equipment, food-safety compliance, fire-safety requirements, staffing and operating licences are considered.
Logistics and Delivery service
E-commerce growth supports demand for delivery, warehousing and logistics services. A small business may begin with delivery coordination or technology-enabled logistics support, but direct transportation, postal, warehousing and cross-border logistics activities can be subject to specific licences and foreign-investment conditions.
Furniture making and remodeling
Furniture manufacturing, custom design and restoration can serve domestic consumers and export supply chains. The required capital depends on whether the business provides design and brokerage services or operates a workshop requiring machinery, premises, workers and environmental controls.
Beauty products and Personal-Care Services
Vietnam’s consumer market creates opportunities in cosmetics and personal care. Importers and distributors should verify product notification, labelling, advertising, customs and retail requirements. Salons and other service establishments should also confirm local registration, premises and operational conditions.
Laundry service and Home Services
Laundry collection, cleaning, repair and other home services can be launched on a smaller scale than manufacturing or retail operations. Operators should still register the appropriate business activities and comply with employment, tax, premises, wastewater and consumer-protection requirements where applicable.
How Do the 2026 Regulatory Changes Affect Foreign Investors?
Vietnam’s 2025 Investment Law took effect on 1 March 2026, with certain business-condition provisions applying from 1 July 2026. The reforms reduce or simplify some procedures and expand special investment procedures for qualifying projects in designated zones.
Foreign investors must still assess market access, ownership restrictions, project location, investment approvals and sector licences. Regulatory reform may change the order or form of a procedure, but it does not eliminate due diligence. Existing foreign-invested enterprises should also review their registered objectives, capital, location, implementation schedule and licences before expanding or restructuring. investvietnam.gov.vn
What Should Foreign Investors Check Before Entering Vietnam?
A foreign investor should ordinarily complete the following checks:
- Confirm whether the proposed activities are prohibited, conditional or subject to foreign market-access restrictions.
- Determine the permitted foreign ownership percentage and whether a Vietnamese partner is required.
- Select an appropriate entity and investment structure.
- Identify whether investment policy approval or an Investment Registration Certificate is required.
- Apply for an Enterprise Registration Certificate and any required operating licences.
- Confirm that the proposed premises may legally be used for the intended activity.
- Assess capital contribution, banking, accounting, tax, labour and reporting obligations.
- Determine whether the project genuinely qualifies for any investment incentives.
- Establish a compliance calendar for post-licensing filings and renewals.
Can a foreigner own 100% of a company in Vietnam?
Foreign investors may own 100% of a Vietnamese company in many business sectors, provided the activities are open to foreign investment and all applicable market-access conditions are satisfied. Other sectors may impose ownership caps, joint-venture requirements, professional qualifications, minimum investment conditions or specialised licensing rules.
What are IRC and ERC in Vietnam?
An Investment Registration Certificate records information about a qualifying foreign-invested project, while an Enterprise Registration Certificate establishes and records the legal entity. They serve different purposes.
Foreign investors should not assume that every investment follows an identical IRC-then-ERC sequence. Under the investment framework effective in 2026, the applicable procedure can depend on the investor, project, business activities and selected establishment route. Specialist advice should be obtained before filing.
How Can We Help?
Premia TNC assists local and foreign investors with Vietnam market entry, company incorporation and ongoing corporate compliance. Support may include preliminary structure assessment, investment and enterprise registration, accounting, tax, payroll and other post-incorporation requirements.
Professional review is particularly important where a proposed business involves conditional activities, foreign ownership restrictions, specialised licences, regulated products or location-dependent investment procedures.
Is Vietnam a suitable location for a small foreign-owned business?
It can be, particularly for technology, consulting, sourcing and other service-oriented models. Suitability depends on market demand, foreign market-access conditions, licensing requirements, available capital and whether the business needs local premises or employees.
Is there a universal minimum capital requirement for starting a company in Vietnam?
No universal statutory minimum applies to every company. However, regulated sectors may impose legal capital requirements, and the authorities may assess whether proposed investment capital is sufficient and credible for the project’s scale and activities.
Are tax incentives automatically available to foreign investors?
No. Incentives generally depend on factors such as the project’s sector, location, scale, technology and legal eligibility. Investors should verify the applicable conditions before including an incentive in their financial projections.
Does every foreign investor need an IRC?
Not necessarily. The requirement depends on the investor, transaction and project structure. Foreign-invested projects commonly require investment registration, but exceptions and alternative procedures may apply under the current framework.
What is the best low-capital business to start in Vietnam?
Skill-based digital services, consulting, tutoring, design, software development and online business support can require less initial capital than manufacturing, restaurants or physical retail. The best option is one with demonstrated demand that the founder is legally permitted and professionally equipped to operate.
