Cost of Setting Up a Company in Vietnam in 2026: Complete Breakdown for Foreign Investors

Introduction

One of the first questions foreign investors ask before entering the Vietnamese market is: How much does it cost to set up a company in Vietnam?

Vietnam remains one of the most cost-effective destinations in Asia for foreign direct investment. However, the total cost of company formation depends on various factors, including the business sector, investment structure, licensing requirements, office location, and post-registration compliance obligations.

This guide provides a detailed breakdown of the costs involved in setting up a company in Vietnam in 2026, helping foreign investors budget effectively and avoid unexpected expenses.

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What Determines the Cost of Company Formation in Vietnam?

The total cost depends on:

• Business activity

• Investment scale

• Foreign ownership structure

• Location of operations

• Licensing requirements

• Office rental costs

• Professional service fees

A simple consulting company will generally cost significantly less to establish than a manufacturing or logistics project.

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Main Costs of Setting Up a Company in Vietnam

Foreign investors should expect costs in the following categories:

1. Government Registration Fees

2. Legal and Consulting Fees

3. Office Rental Costs

4. Charter Capital Requirements

5. Accounting and Tax Compliance

6. Bank Account Setup

7. Digital Signature and E-Invoice Costs

8. Employee and Payroll Costs

9. Annual Compliance Costs

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Government Registration Fees

Government fees are relatively low compared to many other jurisdictions.

These fees generally cover:

• Enterprise registration

• Business registration publication

• Administrative processing

Government charges usually represent only a small portion of the overall investment budget.

For foreign-invested companies, the more significant costs typically arise from legal support, compliance, and operational setup.

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Investment Registration Certificate (IRC) Costs

Most foreign investors establishing a new company must first obtain an Investment Registration Certificate (IRC).

The cost associated with IRC applications may include:

• Application preparation

• Investment project documentation

• Translation services

• Notarization expenses

• Legal review

The complexity of the investment project significantly affects preparation costs.

For example:

Low Complexity Projects

• Consulting companies

• Software businesses

• Marketing agencies

Higher Complexity Projects

• Manufacturing facilities

• Logistics operations

• Education institutions

• Real estate projects

Complex projects generally require additional documentation and regulatory approvals.

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Enterprise Registration Certificate (ERC) Costs

After obtaining the IRC, investors must secure an Enterprise Registration Certificate (ERC).

Costs may include:

• Registration filing

• Corporate documentation

• Company charter drafting

• Legal representative documentation

Compared with the IRC stage, ERC registration is generally faster and less expensive.

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Legal and Consulting Service Fees

Many foreign investors engage professional consultants to manage the registration process.

Professional service fees typically cover:

Pre-Investment Consultation

Services may include:

• Investment structure planning

• Foreign ownership assessment

• Market access review

Company Registration

Assistance with:

• IRC applications

• ERC applications

• Corporate governance documents

Post-Licensing Support

Including:

• Tax registration

• Labor registration

• Compliance setup

Professional support often reduces approval delays and minimizes compliance risks.

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Office Rental Costs

Every company must maintain a legally registered business address.

Office expenses vary considerably depending on location and business needs.

Ho Chi Minh City

Typically the most expensive office market in Vietnam.

Popular districts include:

• District 1

• District 3

• District 7

• Thu Duc City

Hanoi

Office costs are generally comparable to major business districts in Ho Chi Minh City.

Da Nang

Offers lower rental costs while providing access to a growing business ecosystem.

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Serviced Offices vs Traditional Offices

Many foreign investors initially choose serviced offices because they provide:

• Lower startup costs

• Flexible lease terms

• Administrative support

• Professional business addresses

Traditional offices may become more economical for larger operations.

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Charter Capital Requirements

One common misconception is that Vietnam imposes a universal minimum capital requirement.

In reality, most industries do not have a fixed minimum charter capital.

However, authorities evaluate whether the proposed capital is reasonable for the intended business activities.

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Typical Capital Expectations

Consulting Companies

Often require relatively modest capital levels.

Trading Companies

Generally require higher capital due to inventory and operational expenses.

Manufacturing Companies

Usually require substantial capital investments for:

• Machinery

• Facilities

• Workforce

• Production operations

The larger the project, the greater the expected capital commitment.

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Document Preparation Costs

Foreign investors often incur costs related to preparing overseas documents.

These may include:

Notarization

Required for certain corporate documents.

Consular Legalization

Many foreign documents must be legalized before use in Vietnam.

Certified Translation

Documents generally require translation into Vietnamese.

These expenses vary depending on the country of origin and the number of documents involved.

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Bank Account Setup Costs

Foreign-invested companies typically establish:

Direct Investment Capital Account (DICA)

Used for capital contributions and foreign investment transactions.

Corporate Operating Account

Used for daily business activities.

Most banks charge modest fees for account maintenance and transaction services.

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Digital Signature Costs

Vietnam requires businesses to conduct many tax and regulatory filings electronically.

A digital signature is necessary for:

• Tax declarations

• Social insurance filings

• Government reporting

Digital signature services generally involve annual subscription fees.

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Electronic Invoice (E-Invoice) Costs

Businesses operating in Vietnam must issue electronic invoices.

Costs may include:

• E-invoice software

• Invoice packages

• System integration

The total expense depends on transaction volume.

Small businesses often incur relatively low annual costs.

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Accounting and Tax Compliance Costs

Accounting represents one of the most important ongoing expenses for foreign-invested companies.

Monthly Accounting

Companies must maintain proper accounting records.

Tasks include:

• Bookkeeping

• VAT declarations

• Payroll accounting

• Financial reporting

Annual Financial Statements

Vietnamese companies must prepare annual financial statements in accordance with local accounting standards.

Tax Filings

Regular tax compliance may involve:

• VAT

• Corporate income tax

• Personal income tax

• Foreign contractor tax

Many foreign businesses outsource accounting functions to specialized service providers.

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Labor and Payroll Costs

Businesses planning to hire employees should consider:

Salaries

Compensation varies depending on industry and experience.

Social Insurance

Employers contribute to mandatory social insurance programs.

Health Insurance

Required under Vietnamese labor regulations.

Unemployment Insurance

Applicable to eligible employees.

These obligations should be factored into overall operating costs.

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Industry-Specific Licensing Costs

Certain industries require additional permits.

Examples include:

Education

May require:

• Educational licenses

• Facility inspections

Logistics

May require specialized operating permits.

Food and Beverage

May require food safety approvals.

Healthcare

May require professional and facility licensing.

Such industries generally involve higher setup costs than standard consulting or software businesses.

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Hidden Costs Foreign Investors Often Overlook

Many investors budget only for registration expenses and underestimate ongoing compliance obligations.

Common overlooked costs include:

Annual License Tax

Applicable to registered businesses.

Office Lease Deposits

Landlords frequently require security deposits.

Work Permit Applications

Foreign employees often require:

• Work permits

• Temporary residence cards

Audit Requirements

Certain foreign-invested enterprises may require annual audits.

Regulatory Reporting

Periodic reporting obligations can create additional compliance costs.

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Estimated Cost Ranges by Business Type

Consulting Company

Generally among the lowest-cost business structures to establish.

Typical costs primarily involve:

• Licensing

• Office registration

• Accounting services

Trading Company

Moderate setup costs due to:

• Import-export activities

• Inventory requirements

• Additional licensing considerations

Manufacturing Company

Often the highest-cost category due to:

• Factory leasing

• Equipment investment

• Labor requirements

• Environmental approvals

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How to Reduce Company Formation Costs

Foreign investors can manage costs by:

Selecting Appropriate Business Activities

Avoid unnecessary licensing complexity.

Choosing the Correct Legal Structure

An LLC is often the most cost-efficient option.

Using Serviced Offices Initially

This reduces startup expenses.

Outsourcing Accounting Functions

Professional accounting services are often more economical than maintaining a full in-house team.

Planning Compliance Early

Preventing regulatory issues is usually less expensive than correcting them later.

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Frequently Asked Questions

Is Vietnam Expensive for Foreign Investors?

Compared to many regional investment destinations, Vietnam remains highly competitive in terms of setup and operational costs.

Is Charter Capital a Government Fee?

No. Charter capital belongs to the company and is used to support business operations.

What Is the Largest Cost When Starting a Company?

For most foreign investors, office expenses, staffing, and ongoing compliance costs exceed government registration fees.

Do I Need Professional Assistance?

While not legally required, professional support often helps investors avoid delays, licensing errors, and compliance risks.

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Conclusion

The cost of setting up a company in Vietnam depends on the nature of the business, investment scale, and regulatory requirements. While government registration fees remain relatively modest, investors should carefully budget for legal services, office space, accounting, tax compliance, labor costs, and industry-specific licensing obligations.

By understanding the full cost structure and planning appropriately, foreign investors can establish a compliant and sustainable business presence in Vietnam while minimizing unexpected expenses.

For a complete roadmap, read our guide on Set Up Company in Vietnam and explore the requirements, licensing procedures, and compliance obligations that apply to foreign-owned companies.