Country guide · Business profile

Vietnam

Southeast Asia’s first stop for manufacturing and expansion: close to China, politically stable, young workforce, low cost, and a deep web of free-trade deals. The most popular landing spot for Chinese companies going overseas.

Best for: Manufacturing relocation, electronics / textile / furniture supply chains, consumer-brand and F&B/retail expansion, cross-border e-commerce.

Employer load

+23.5%

over the wage

Population

~100 million (over half under 35)

market size

GDP/capita

US$4,700 (2024, +377 YoY)

purchasing power

Before you enter, get this right

Cheap labor and ample talent are the surface; the real decision point is that dismissal is very hard. Many enter with a "hire first, sort it later" mindset and then can’t let people go. Design your exit before you enter.

Market overview · how big the opportunity

GDP / growth

US$476B (2024), real growth 7.09%

Growth

Years of high growth, among the fastest in SE Asia

FDI

~US$25.3B disbursed in 2024 (record high); top sources: Korea / Singapore / Japan / Taiwan / Hong Kong

Investment hubs

Bac Ninh, Hai Phong (northern electronics) · Ho Chi Minh City, Binh Duong (southern light industry / consumer)

Source: Vietnam Briefing / World Bank (2024)

Business environment · what wins, what to watch

Most sectors allow 100% foreign ownership (negative-list system); export-oriented manufacturing is especially welcomed, with mature industrial parks.

Strengths

Labor ~30–50% cheaper than coastal China, abundant and literate workforce
Wide FTA network (CPTPP / EVFTA / RCEP) with clear tariff advantages on exports
Borders China — smooth supply-chain links and short logistics radius
Pro-investment government; fast landing via industrial / export-processing zones

Challenges / notes

Skilled technicians and mid-level managers are scarce; core-role wages rising fast
Occasional local power/infrastructure strain — evaluate site carefully
Admin approvals, customs, and fire/EIA processes need a local team
Some raw materials and components still imported

Industry opportunities

Electronics / semiconductor assembly
Samsung’s largest overseas production base; Apple supply chain shifting in
Textiles / footwear
EVFTA zero tariffs into the EU; world’s #2 footwear exporter
Furniture / home goods
Leading exporter to the US, complete wood-products chain
Consumer brands / F&B retail
100M young population, consumption upgrade
Cross-border e-commerce / logistics
High e-commerce growth + regional transit hub

Labor cost (summary) · what one hire costs

Employer monthly cost over wage+23.5%

Local minimum wageRegion 1 VND 5,310,000/mo (2026)

Minimum wage in 4 regions (Region I ~₫5.31M/month, from 2026); employer side ~23.5% all-in: social 17.5% + health 3% + unemployment 1% (21.5%) + a 2% trade-union fee (mandatory, with or without a union). Full breakdown in the hiring guide.

Getting started · first steps

1.Site: North (electronics/machinery, near China & Hai Phong port) vs South (consumer/light industry, HCMC metro)
2.Entity: foreign investors usually set up an LLC; a factory needs an Investment (IRC) + Enterprise Registration Certificate (ERC)
3.Hiring: blue-collar recruiting is mature in industrial zones; mid-level, engineers and translators via headhunters/referrals — see hiring guide

Still choosing? Compare Vietnam with other markets; once you decide, start by hiring.