How to Start a Small Business in Vietnam?

Starting a small business in Vietnam has become increasingly attractive for both local entrepreneurs and foreign investors. With strong economic growth, a young consumer market, and a business-friendly environment, Vietnam offers countless opportunities, from retail and tech startups to manufacturing and F&B ventures.

Step-by-Step Guide to Starting a Small Business in Vietnam

1. Choose Your Business Idea

First of all, you should figure out what kind of small business ideas would be profitable in Vietnam and also suit the market trends. Among the most trendy business are a food delivery service, an e-commerce business, a tourism-related business, and a manufacturing one.

2. Select a Legal Structure

Decide whether to register as a limited liability company (LLC), a joint-stock company, or a sole proprietorship. Most small businesses prefer the LLC structure for its flexibility and limited liability protection.

3. Register Your Company

For local entrepreneurs, the business registration application is filed with the Department of Planning and Investment (DPI) of your chosen province or city.

For foreign investors, an Investment Registration Certificate (IRC) must be obtained before applying for the Enterprise Registration Certificate (ERC).

4. Obtain Business Licenses and Tax Registration

You must also register for taxes, including Corporate Income Tax (CIT), generally 20%, and Value Added Tax (VAT), which is typically 10%. Some sectors may temporarily enjoy a reduced VAT rate of 8% under government policy effective until 2025.

5. Open a Business Bank Account and Hire Staff

A local bank account is essential for capital contribution, salary payments, and daily transactions. Many small businesses also benefit from hiring local talent familiar with Vietnamese market practices.

Note: Vietnam does not impose a universal minimum capital requirement, though certain regulated sectors, such as real estate, education, or logistics, may have specific capital thresholds.

Vietnam’s strong economy, strategic location, and growing middle class make it one of Asia’s best destinations for small business ventures. Whether you’re a local entrepreneur or an expat investor, seeking professional guidance can simplify compliance and registration.

Companies like OneIBC Vietnam specialize in Vietnam company formation, tax registration, and business advisory, helping you establish and grow your small business in Vietnam efficiently and successfully.