Vietnam
A practical first base for manufacturing, supply-chain or consumer expansion into Southeast Asia: the economy grew 8.02% in 2025, but sector access, location and entry route must be assessed separately.
Best for: Manufacturing relocation, electronics / textile / furniture supply chains, consumer-brand and F&B/retail expansion, cross-border e-commerce.
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
Source: Vietnam NSO / Foreign Investment Agency InvestVietnam (2025; checked 15 Aug 2026)
Business environment · what wins, what to watch
Foreign access follows the Investment Law and its negative list. Sectors outside the list generally receive domestic-investor access; listed sectors require checks on ownership, form, scope and investor qualifications.
- A 53.5M labor force in 2025, with manufacturing still a primary growth engine
- The Ministry of Industry and Trade lists CPTPP, EVFTA and RCEP as effective agreements; preferences still depend on product-specific origin rules
- Borders China — smooth supply-chain links and short logistics radius
- Realized FDI reached the highest level of the 2021–2025 period
- Skilled technicians and mid-level managers are scarce; core-role wages rising fast
- The 2025 provincial reorganization makes old addresses, authorities and regional datasets unsafe without rechecking
- Land, construction, fire, environmental and sector licences can extend the schedule beyond investment and enterprise registration
- Some raw materials and components still imported
Industry opportunities
- Electronics / semiconductor assemblyManufacturing value added grew 9.97% in 2025; northern FDI clusters around Bac Ninh–Hai Phong–Hanoi
- Textiles / footwearAn established export chain and multiple FTAs; preference depends on tariff classification and origin rules
- Furniture / home goodsFurniture and related manufacturing remain part of the expanding production and export base
- Consumer brands / F&B retail102.3M people; wholesale/retail value added +8.52% and accommodation/food +10.02% in 2025
- Logistics / supply-chain servicesTransport and storage value added grew 10.99% in 2025, with demand across northern and southern port-manufacturing corridors
Choosing an entry mode
For local contracting, invoicing, hiring or long-term operations; one/multi-member LLCs and JSCs are common forms
For an existing local business, licence, channel or team; market-access and prior-registration triggers must be checked first
Parties collaborate without a new legal entity; contract, tax and liability boundaries need deliberate design
For liaison, research and promotion only; not a substitute for direct revenue-generating operations
Choosing a region
- Northern manufacturing corridor
Bac Ninh–Hanoi–Hai Phong: electronics, precision manufacturing and port logistics, close to China-linked supply chains.
- Southern integrated market
Enlarged HCMC–Dong Nai–Tay Ninh: consumer, services, light industry, ports and regional HQ; former Binh Duong and Ba Ria–Vung Tau are now within HCMC.
- Central nodes
Da Nang and the central coast: software services, tourism, logistics and selected manufacturing; validate supply-chain density and market radius per project.
Budget, timeline and key risks
Split the budget into registration/advisory, committed capital, premises/industrial park, licences/compliance, people/on-costs and 6–12 months of operating cash. There is no single all-sector, all-location landing price.
A service operation is usually simpler than a land-and-factory project. Investment-policy approval, land, construction, EIA/fire and sector licences are the true schedule drivers; confirm dates with the competent local authority before promising them.
- Wrong foreign-access or ownership analysis
- Using pre-reorganization addresses, authorities or regional data
- Treating IRC/ERC as the end of all licensing
- Claiming FTA preferences without satisfying origin rules
- Underpricing hiring, probation, termination and social-insurance obligations
Labor cost (summary) · what one hire costs
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.Choose the entry mode first: a new foreign-invested entity, acquisition/equity investment, BCC, or a non-revenue representative office; their rights differ
- 2.Then choose location: the North for electronics/machinery and Hai Phong port; the South for consumer, light industry, ports and services. Binh Duong is now inside the enlarged HCMC, and Hai Phong absorbed Hai Duong
- 3.Determine whether investment-policy approval is required before IRC and ERC; land, tax, employment and sector licences remain separate workstreams
- 4.Hiring: blue-collar recruiting is mature in industrial zones; mid-level, engineers and translators via headhunters/referrals — see hiring guide
Vietnam Launch journey · six connected channels
Work through the dependencies in order, retaining official evidence, owners, deadlines and exception-recovery records at each step.
Official evidence for this page
Still choosing? Compare Vietnam with other markets; once you decide, start by hiring.
Need someone on the ground to actually run it?
We field a local marketing and technology team in Vietnam
This guide tells you what the rules are. Execution still needs local demand generation, in-store conversion, and membership plus automation to turn buyers into repeat customers.