Vietnam (VN)
Vietnam is a dynamic, rapidly developing Socialist Republic stretching 1,650km down the eastern coast of the Indochinese Peninsula — a country of extraordinary geographical diversity, from the karst mountains of the north and the Red River Delta, through the stunning coastline of the Central region, to the vast Mekong Delta in the south.
Capital: Hanoi
Region: Asia
Language: Vietnamese
Currency: VND (₫)
Cost of living: Very affordable (index 22)
Emergency: 113
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Business Setup
Start a business or go freelance in Vietnam.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Assess whether your work requires a Vietnamese work permit. All work performed for a Vietnamese entity requires a work permit. Remote work for foreign-registered companies from Vietnam is a legal grey area — not formally authorised but not actively enforced against foreign-income remote workers.
- 2 If running a business (selling services to Vietnamese clients), you must register a business entity. Individual business household (Hộ kinh doanh cá thể) or sole trader registration is available for Vietnamese nationals but NOT available for foreigners — foreigners must set up an LLC or Representative Office.
- 3 Register for a Personal Income Tax (PIT) code at the local Tax Department (Cục Thuế) if earning income in Vietnam. Required for any individual with Vietnam-source income.
- 4 Open a Vietnamese bank account (VCB, BIDV, VPBank, Techcombank, HSBC, Standard Chartered) — required for receiving payments from Vietnamese clients, paying taxes and demonstrating financial activity.
- 5 Declare income and pay PIT quarterly (self-assessment) or annually via Form 02/QTT-TNCN by 31 March of the following year.
- 6 If turnover exceeds VND 1 billion/year: VAT registration required. VAT invoices (hóa đơn điện tử — electronic invoices) must be issued for all taxable supplies to Vietnamese clients.
- 7 Obtain work permit exemption certificate (if eligible — e.g., expert status, NGO, certain executive roles) at DOLISA, confirming legal work status.
- 8 Consult a Vietnamese tax and immigration lawyer before starting — the intersection of immigration status, work permit rules, PIT obligation and business registration for foreign individuals is complex and changes frequently.
Tax registration
Register at the provincial Tax Department (Cục Thuế) with passport, temporary residence certificate and address evidence. Tax code (mã số thuế) issued within 3 working days. Free. Once registered, quarterly PIT provisional payments are due by the 30th of the following month after each quarter. Annual reconciliation by 31 March.
VAT threshold
VND 1,000,000,000 (1 billion VND) annual revenue. Below this threshold, simplified tax regime (flat % on revenue: 1%–7% depending on business type) may apply instead of standard VAT + PIT. Above threshold: standard VAT at 10% (or 5%/0% for qualifying supplies) and PIT at progressive rates on net profit.
Invoicing
Vietnam requires electronic invoices (hóa đơn điện tử — HĐĐT) for all businesses since 1 July 2022. Register with a Ministry of Finance-approved e-invoice provider (VNPT Invoice, Viettel Invoice, MISA, Fast, SoftDream). Each invoice must include: seller tax code, buyer information, date, items/services, unit price, VAT rate, VAT amount, total amount, and sequential invoice number. Penalties for non-compliant invoicing: VND 2–5 million per violation.
Social security
Foreigners who are formally employed must contribute to BHXH, BHYT and BHTN (10.5% employee, 21.5% employer combined). Self-employed foreigners (operating through a foreign company, not Vietnamese entity): generally exempt from Vietnamese social insurance unless they choose voluntary BHXH participation. Voluntary BHXH contributions: 22% of chosen contribution base (minimum 1× statutory minimum wage). Recommended for those planning to stay long-term and claim retirement benefits.
💡 Vietnam's regulatory environment for foreign freelancers and independent contractors is not fully codified. The practical reality is that many Western expats operate as remote workers for overseas clients using tourist or e-visas without formal Vietnamese work authorisation. This carries legal risk — while enforcement against foreign-income remote workers is rare, it remains an immigration/legal vulnerability. Those seeking legal certainty should: (1) establish a proper LLC, (2) obtain a work permit, (3) operate transparently within the tax system. The 2023–2026 period has seen increased GDT scrutiny of foreign-income flows into Vietnam — proper compliance is increasingly advisable.
🏢 Business Structures
LLC · Công ty Trách nhiệm Hữu hạn Một thành viên (TNHH MTV)
Single-Member Limited Liability Company
No statutory minimum for most sectors; USD 50,000–300,000+ commonly required for foreign-invested enterprises (FIE) in services; higher minimums for banking, insurance and certain regulated sectors.
Min. capital
15–30 working days for Investment Registration Certificate (IRC) + Enterprise Registration Certificate (ERC) from DIZA/DPI. Complex regulated sectors longer.
Setup time
Liability: Limited to charter capital contributed. Members not personally liable for company debts.
Setup cost: Government fees: VND 200,000–500,000 (registration). Notary, translation, legalisation of foreign documents: VND 2,000,000–10,000,000. Legal agent fees: VND 10,000,000–40,000,000+. Total typical: USD 2,000–5,000.
Best for: Foreign individual investors, small and medium enterprises, service companies. Simplest 100% foreign-owned structure allowed under Vietnam's WTO commitments.
LLC-2 · Công ty Trách nhiệm Hữu hạn Hai thành viên trở lên (TNHH)
Multi-Member Limited Liability Company
No statutory minimum for most sectors. Same investment thresholds as single-member LLC for FIEs. 2–50 members.
Min. capital
15–30 working days.
Setup time
Liability: Limited to charter capital contributed by each member in proportion to shareholding.
Setup cost: Similar to Single-Member LLC: USD 2,000–6,000 including government fees, legal and document preparation.
Best for: Joint ventures between Vietnamese and foreign partners; partnerships between 2–50 foreign or mixed investors. Most common FIE structure for joint ventures.
JSC · Công ty Cổ phần (CP)
Joint Stock Company
No general minimum. Regulated sectors: banks (VND 3,000 billion), securities companies (VND 10–165 billion), insurance (VND 300–1,000 billion).
Min. capital
20–45 working days for public companies; shorter for private JSCs.
Setup time
Liability: Limited to subscribed capital. Shareholders not personally liable.
Setup cost: Higher due to share registration and shareholder requirements: USD 3,000–10,000+ depending on sector and complexity.
Best for: Companies planning to list on HOSE or HNX stock exchanges, companies with 3+ founders, companies seeking venture capital investment or complex shareholder structures.
RO · Văn phòng Đại diện
Representative Office
None required.
Min. capital
7–15 working days at provincial Department of Industry and Trade (DOIT).
Setup time
Liability: Not a separate legal entity — liability remains with parent company.
Setup cost: VND 3,000,000–5,000,000 government fees plus legal/document costs: USD 1,000–3,000 total.
Best for: Market research, liaison activities, coordinating parent company activities. CANNOT conduct direct profit-making business activities in Vietnam — no signing commercial contracts for revenue. Annual licence renewal required.
Branch · Chi nhánh
Branch Office
Follows parent company requirements; depends on sector.
Min. capital
15–25 working days.
Setup time
Liability: Parent company bears full liability for branch activities.
Setup cost: USD 2,000–5,000 including document preparation.
Best for: Foreign companies in sectors where branches are permitted (limited by WTO commitments — many service sectors require LLC instead). Branches CAN conduct commercial activities and generate revenue, unlike Representative Offices.
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