Life abroadOctober 17, 2026

What life is really like as an expat entrepreneur in Vietnam

Vietnam sells itself easily to founders. Rent is low, the cities run late, labour is skilled and affordable, and the economy keeps growing faster than most of the region. Ho Chi Minh City feels like a place where something is always being built.

The part people underestimate is that running a company here is a legal structure first and a lifestyle second. Your visa, your right to work, and how long you can stay all depend on how your company is set up and how much capital you put in. Get that right early and daily life is very good. Get it wrong and you spend your first year fixing it.

This piece covers both sides. The rules come from Vietnamese government sources and legal texts, linked at the end. Nessel is not the source of truth for these numbers. Laws in Vietnam changed a lot in 2025 and 2026, so confirm everything with a licensed local adviser before you file.

The short version

Visiting to scout is easy. Every nationality can get a 90-day e-visa, single or multiple entry, from the official portal.
Staying as a founder means a company. Foreigners usually open a foreign-invested limited liability company, then apply for an investor (DT) visa that matches their capital.
VND 3 billion is the number that matters. At or above it, you get a residence card track and you don't need a work permit. Below it, you renew a one-year visa every year.
Taxes got simpler in 2026. New personal income tax brackets apply from the 2026 tax year, and small companies pay a lower corporate rate.

Scouting first

Most founders arrive on an e-visa before committing. Since August 2023, the e-visa has been open to citizens of every country and lasts up to 90 days. The fees listed on the Ministry of Public Security's portal are US$25 for single entry and US$50 for multiple entry. Use only the official sites, `evisa.gov.vn` or `thithucdientu.gov.vn`. Plenty of agent sites look official and charge more.

An e-visa is for visiting and scouting. You can meet people, view offices, and talk to lawyers. Don't sign customers or start operating on one.

Setting up the company

The usual vehicle is a limited liability company with foreign ownership. Two certificates are involved:

Investment Registration Certificate (IRC): approves your investment project.
Enterprise Registration Certificate (ERC): creates the legal company that can sign contracts, issue invoices, and hire.

Until 2026, you had to get the IRC first. The Law on Investment 2025, in force since March 1, 2026, and its implementing Decree 96/2026 now let you get the ERC first. If you do, you must obtain the IRC within 12 months, and you can't carry out the project until you do. Many lawyers still recommend the old order, IRC first, because banks and some provinces are still adjusting.

On paper, the government's processing time for a straightforward project is short: about 10 working days for the IRC and 3 for the ERC. In practice, founders should budget 4 to 6 weeks, and 2 to 3 months if the business line is restricted or your documents from home need legalising and translating.

After the ERC, the clock starts on your capital. Charter capital generally has to be fully contributed within 90 days, and cash from abroad must go through a special investment capital account at a Vietnamese bank. Talk to the bank before you incorporate, not after.

Two things founders often learn the hard way:

Your business line matters. Some sectors are restricted or conditional for foreign investors. A vague business description can block a licence or a bank account later.
Don't use a nominee. Putting a company in a Vietnamese friend's name to skip the foreign-investment process is common advice in expat groups. It leaves you with no legal ownership and no visa basis. It's the most expensive shortcut in the country.

The capital threshold decides your visa

Investor visas are tiered by how much capital you contribute. These tiers come from the consolidated Law on Entry, Exit, Transit and Residence of Foreigners:

DT1: VND 100 billion or more, or investment in priority sectors or areas. Visa up to 5 years, residence card up to 10 years.
DT2: VND 50 billion to under 100 billion, or encouraged sectors. Visa and residence card up to 5 years.
DT3: VND 3 billion to under 50 billion. Visa and residence card up to 3 years.
DT4: under VND 3 billion. A visa of up to 12 months and no residence card. You renew every year.

VND 3 billion was roughly US$115,000 at late-2025 exchange rates. That's the line most small founders plan around, because it also controls the right to work.

Under Decree 219/2025, in force since August 7, 2025, the owner or a capital-contributing member of an LLC with VND 3 billion or more in contributed capital doesn't need a work permit. The company only has to notify the local labour authority at least 3 working days before you start work. Below VND 3 billion, owners and members are treated as foreign workers and generally need a work permit.

So a founder who puts in VND 2.5 billion and one who puts in VND 3 billion live very different lives. The first renews a visa yearly and handles work-permit paperwork. The second gets a multi-year residence card and skips the permit. If you're close to the line, it's usually worth reaching it.

Since July 1, 2026, Vietnam also has UĐ1 and UĐ2 visas for high-skilled digital technology workers and other preferred groups, plus their spouses and children. They last up to 5 years, and the matching residence card up to 10. They're not general founder visas, but tech founders should ask an adviser whether their profile qualifies.

Tax: simpler than it was

Corporate income tax. The standard rate is 20%. Under the 2025 Corporate Income Tax Law, a company with total revenue of VND 3 billion or less in the previous year pays 15%, and over VND 3 billion up to VND 50 billion pays 17%. Subsidiaries of larger related groups may not qualify.

Personal income tax. You become a Vietnamese tax resident if you spend 183 days or more in a calendar year, or 12 consecutive months, in Vietnam. A fixed-term lease on a home can also count. Residents are taxed on worldwide income. From the 2026 tax year, salary is taxed in five brackets instead of seven, from 5% on the first VND 10 million a month up to 35% above VND 100 million.

Whatever your structure, you'll need an accountant. Monthly or quarterly VAT and payroll filings, electronic invoices, and year-end finalisation are routine here. Most small foreign companies use an outside accounting firm for a modest monthly fee. Budget for it from day one.

Daily life: what founders say it's actually like

The legal setup takes a few months. The day-to-day is what keeps people here or sends them home.

The cities are very different. Ho Chi Minh City is the commercial centre: the most clients, investors, coworking spaces, and international schools, and the most traffic. Hanoi is more governmental and traditional, with seasons and a slower social rhythm that suits B2B and government-facing work. Da Nang is popular with remote-first founders who want the beach, lower rent, and a short flight to either.

Business runs on relationships and messaging apps. Zalo is where suppliers, landlords, accountants, and many clients actually talk. Email is for formalities. Meetings start with coffee and conversation before business, and a first deal often comes from an introduction, not a cold pitch. Patience pays off.

Payments are mostly digital. QR bank transfers are everywhere, from street food to office rent. Opening a personal account usually needs your passport with a valid visa or residence card, so your immigration status affects everyday banking too.

Overhead is low, but so are prices. Office space, staff, and living costs are a fraction of Singapore's or the West's. But many Vietnamese customers are price-sensitive, and local competitors move fast. Founders who do best usually sell to export markets or to companies, or pick a niche where local knowledge is hard to copy.

Language is a ceiling, not a wall. You can run a company in English in the big cities, especially in tech, hospitality, and export. But basic Vietnamese changes how suppliers, landlords, and officials treat you, and you'll need translated, notarised documents for nearly every official step. A trusted bilingual operations hire is often the first and most valuable one.

Admin is a rhythm. Visa and residence card renewals, the labour notification, tax filings, and temporary residence registration with local police are recurring tasks, not one-time ones. Founders who set calendar reminders and keep a good law or accounting firm on call find it manageable. Founders who don't, find out at renewal time.

Before you commit

Scout on an e-visa. Spend a few weeks in at least two cities. Talk to founders who have been here more than two years, not only those who arrived last month.
Decide your capital level deliberately. Compare VND 3 billion against your real plans. It determines your residence card, your work permit, and your family's visas.
Check your business line for market-access conditions before you pick a company name or sign a lease.
Hire a licensed local law firm and an accountant before you incorporate. Ask the bank in writing which documents it needs to open your investment capital account.
Count your days. If you'll pass 183 days, plan for Vietnamese tax residency and check your home country's tax treaty position.