Doing Business in Vietnam

Published 25 August 2026

In short

Indian companies must obtain an Investment Registration Certificate from provincial authorities, then apply for an Enterprise Registration Certificate via dangkykinhdoanh.gov.vn. Contribute registered charter capital within 90 days through a Direct Investment Capital Account. Register with tax authority, obtain required sub-licences, and register employees for compulsory insurance. Many activities like trading, distribution and logistics carry foreign ownership caps or extra sub-licences.

Key facts

Capital: Hanoi
Currency: Vietnamese Dong (VND)
Trade with India: US$ 15.76 billion in FY 2024-25 on Indian figures, up 6.40 percent, with India's exports at US$ 5.43 billion and imports at US$ 10.33 billion (Embassy of India, Hanoi). Vietnamese data put calendar year 2024 trade at US$ 14.89 billion. The MEA bilateral brief recorded US$ 14.82 billion for April 2023 to March 2024.
Indian community: Around 8,500 Indians live in Vietnam, per the MEA India-Viet Nam bilateral brief. This is the smallest Indian community among the twelve markets covered, so there is no significant diaspora distribution or hiring network to rely on.

The market

Vietnam is a market of about 100 million people that has become one of the world’s most important manufacturing locations, particularly for electronics, textiles, footwear and furniture. Bilateral trade with India was US$ 15.76 billion in FY 2024-25 on Indian figures, up 6.40 percent, with India’s exports at US$ 5.43 billion and imports at US$ 10.33 billion, per the Embassy of India in Hanoi. Vietnamese data put calendar year 2024 trade at US$ 14.89 billion. Vietnam is India’s eighth largest trading partner and India’s fifteenth largest export destination, while India is Vietnam’s twentieth largest partner. Trade has grown from about US$ 200 million in 2000.

Why Indian businesses go there

Two reasons dominate. First, Vietnam is a manufacturing platform. Labour cost is lower than China, the country has a dense network of free trade agreements covering the EU, the CPTPP members, the UK, Korea and Japan, and Indian companies use it to serve markets that Indian origin goods reach on worse terms. Second, Vietnam is a genuine growth market in its own right for pharmaceuticals and API, buffalo meat and fishery products, machinery, auto components, chemicals, cotton and animal feed. ASEAN-India Trade in Goods Agreement preference makes Indian goods more competitive than most non-ASEAN sources. Indian investment in Vietnam is around US$ 2 billion, with 378 projects and over US$ 1.1 billion of registered capital according to Vietnamese agency data.

The diaspora and business community

The Indian community in Vietnam numbers around 8,500, per the MEA bilateral brief. That is by far the smallest of the twelve markets covered here, and it changes how you should plan. There is no ready diaspora distribution network, no significant Indian retail ecosystem and a limited pool of Indian origin professionals to hire from. You will work through Vietnamese partners, distributors and staff, and you should budget for Vietnamese language capability. The Indian Business Chamber in Vietnam and Embassy commercial events are the practical entry points, along with Vietnam Expo hosted by the Ministry of Industry and Trade and delegations run by FIEO, FICCI and CII.

Sector strengths

India exports frozen bovine meat, fishery products, machinery and equipment, electrical equipment, auto components, pharmaceuticals and API, chemicals, ordinary metals, cereals, cotton, animal fodder and gems and jewellery. India imports electronic and telecom equipment, machinery and mechanical appliances, iron and steel, ordinary metals, chemicals, plastic articles, steel products, footwear, garments, textile materials, wood, rubber and coffee.

The honest difficulties

Licensing is the first hurdle and it is two step. A foreign invested project normally needs an Investment Registration Certificate before it can obtain the Enterprise Registration Certificate, and the IRC process involves appraisal of your project, capital and location. Second, many activities are conditional. Trading, distribution, logistics, education, advertising and several services carry foreign ownership caps, additional sub-licences or WTO commitment restrictions, and the retail distribution licence in particular is discretionary and can be slow. Third, capital must be contributed within 90 days of the ERC through a designated direct investment capital account, and getting money out later depends on that account having been used correctly. Fourth, tax administration is detailed. Vietnam requires e-invoicing, has extensive foreign contractor withholding tax on payments to offshore parties, and the new Corporate Income Tax Law effective 1 October 2025 changed both rates and incentive schemes, removing or reducing some industrial zone benefits. Fifth, the administrative structure has been reorganised, with provincial authorities and ministries restructured during 2025, so confirm which office handles your filing rather than relying on older guidance. Sixth, work permits for foreign staff are strictly assessed and require legalised degree certificates, criminal record checks and health certificates, and enforcement has tightened.

How to apply

Confirm your activity is open to foreign investment and check Vietnam's WTO service commitments and the conditional business lines list, since trading, distribution, logistics, education and advertising carry ownership caps or extra sub-licences.
Choose the structure. Most Indian investors use a 100 percent foreign owned limited liability company, a joint venture LLC with a Vietnamese partner, or a joint stock company. A representative office is available for market scouting without trading.
Prepare and legalise the Indian parent's documents. Certificate of incorporation, charter, board resolution, audited financial statements and bank confirmation of funds must be notarised, apostilled or consular legalised and translated into Vietnamese.
Apply for the Investment Registration Certificate (IRC) from the provincial investment registration authority, or from the management board if you are locating in an industrial zone, export processing zone or high tech park. This step appraises the project, the capital and the site.
Apply for the Enterprise Registration Certificate (ERC) through the National Business Registration Portal at dangkykinhdoanh.gov.vn, which gives the company legal existence and its enterprise code, also used as its tax code.
Make and register the company seal and publish the enterprise registration information as required.
Open a Direct Investment Capital Account with a licensed bank in Vietnam. Charter capital must be contributed through this account, and later profit repatriation depends on having done so correctly.
Contribute the registered charter capital within 90 days of the ERC issue date, and register any change if you cannot meet the deadline.
Register with the tax authority, activate electronic tax filing and set up compliant electronic invoicing, which is mandatory in Vietnam.
Obtain any sub-licence your activity requires, for example a trading licence for goods distribution, a retail outlet licence for each store beyond the first, or sector approvals from the Ministry of Health for pharmaceuticals and food.
Register employees for compulsory social insurance, health insurance and unemployment insurance, and register the labour usage declaration with the provincial labour authority.
Obtain work permits for foreign staff before they start work, supported by legalised degree certificates, at least three years of relevant experience evidence, a criminal record check and a health certificate, and then apply for temporary residence cards.
Set up your AITIGA origin process in India so Vietnamese customers receive preferential duty against a Form AI certificate of origin, and confirm the current rules of origin given the ongoing review.
Put an intercompany agreement and transfer pricing documentation in place with the Indian parent, and assess foreign contractor withholding tax on any cross border service, royalty or interest payment.

What the trade actually looks like

→ India sells

Frozen bovine meatNamed first by the Embassy of India in Hanoi among India's export items to Vietnam, and one of the largest single lines.
Fishery productsMarine exports both for Vietnamese consumption and for onward processing and re-export.
Machinery, equipment and electrical equipmentCapital goods supplied into Vietnam's expanding manufacturing base.
Pharmaceuticals and active pharmaceutical ingredientsVietnam imports a large share of its medicines and API, and Indian suppliers have a significant position.
Auto components and ordinary metalsFeeding Vietnamese vehicle assembly and metal fabrication.
Cotton, cereals and animal fodderRaw cotton for Vietnam's textile industry and feed inputs for its livestock and aquaculture sectors.

← India buys

Electronic and telecom equipmentNamed first among India's imports from Vietnam. Vietnam is a major assembly location for phones and consumer electronics.
Machinery and mechanical appliancesIndustrial equipment and components.
Iron, steel and steel productsBoth primary and processed steel for Indian construction and manufacturing.
Chemicals and articles of plasticIntermediates and finished plastic goods.
Footwear, garments and textile materialsVietnam is one of the world's largest footwear and garment producers.
Wood, rubber and coffeeAgricultural and forestry commodities, with coffee a notable line into the Indian market.

Treaties and agreements with India

ASEAN India Trade in Goods Agreement (AITIGA) Signed 2009, tariff liberalisation from 2010, currently under joint committee review

Provides the preferential tariff regime between India and Vietnam, since the two countries have no bilateral FTA. You claim preference with a Form AI certificate of origin issued in India, and you must meet the agreement's rules of origin. A joint committee review to modernise the agreement, tighten rules of origin and improve trade facilitation has been running through 2024 to 2026.

Double Taxation Avoidance Agreement Signed 7 September 1994, in force 2 February 1995

Prevents the same income being taxed in both countries and caps withholding tax on dividends, interest, royalties and technical service fees. It matters particularly in Vietnam because of the broad foreign contractor withholding tax regime, where treaty relief on service and royalty payments to an Indian parent can materially reduce the cost.

India Viet Nam Comprehensive Strategic Partnership Elevated in 2016

The highest level of Vietnam's partnership framework, covering political, defence, security, economic, science and technology and people to people cooperation. Practically, it supports the Joint Commission on Economic, Trade, Scientific and Technological Cooperation and the Joint Trade Sub-Commission, which are the channels for raising non-tariff barriers and market access problems.

Joint Commission Meeting on Economic, Trade, Scientific and Technological Cooperation Ongoing institutional mechanism, 18th meeting held in Hanoi in October 2023

The ministerial level forum where trade irritants get raised, including Indian concerns about Vietnamese non-tariff measures and Vietnamese concerns about Indian trade remedies. Supported by a Joint Sub-Commission on Trade and joint working groups on agriculture, health and information technology.

Which company type to use

100 percent foreign owned limited liability company	The most common vehicle for Indian investors where the activity permits full foreign ownership. Single member or multi member, governed by a charter, with liability limited to the contributed charter capital.
Joint venture limited liability company	Required where foreign ownership is capped, and often useful where the Vietnamese partner brings distribution, land use rights or licences. The charter and shareholders agreement need careful drafting on deadlock and exit.
Joint stock company	At least three shareholders, shares freely transferable subject to restrictions in the first three years for founding shareholders. Needed for eventual listing or for structures with many investors.
Representative office	Licensed by the provincial trade authority for up to five years and renewable. It may conduct market research, liaison and promotion for the Indian parent but cannot trade, sign revenue contracts or issue invoices.
Branch of a foreign company	Permitted only in a narrow set of sectors such as banking, insurance and some professional services. It can trade, but for most Indian businesses a subsidiary is the only realistic route.
Business Cooperation Contract (BCC)	A contractual joint venture without forming a new legal entity, where the parties share revenue or output. Used where a Vietnamese licence holder must remain the operator, but it gives weaker governance protection than an equity structure.

Visas and tax

Getting yourself there

Investor visas are graded by capital contributed. DT1 covers VND 100 billion or more, or a priority sector, valid up to five years with a residence card up to ten years. DT2 covers VND 50 to under 100 billion, DT3 covers VND 3 to under 50 billion, and DT4 covers under VND 3 billion with no residence card. Employees need an LD work visa and a work permit obtained before starting work.

What you will pay

The standard corporate income tax rate is 20 percent. The revised Corporate Income Tax Law, applying from the 2025 tax year and effective from 1 October 2025, introduced tiered rates of 15 percent and 17 percent for smaller enterprises meeting revenue conditions, and revised the incentive regime, expanding some technology and manufacturing benefits while removing or reducing industrial zone benefits. Oil and gas is taxed at 25 to 50 percent and mineral resource extraction at 40 to 50 percent. Preferential rates of 10, 15 and 17 percent remain available for qualifying investments. VAT is 10 percent standard. Foreign contractor withholding tax applies to many cross border payments. A Double Taxation Avoidance Agreement with India exists, signed on 7 September 1994 and in force from 2 February 1995.

Indian government support for this market

Federation of Indian Export Organisations (FIEO)

The apex export body under the Department of Commerce. It coordinates Indian business delegations to Vietnam, participates in Vietnam Expo hosted by the Ministry of Industry and Trade, issues Registration cum Membership Certificates, and works with the Embassy of India in Hanoi on buyer identification and payment disputes. Given the tiny Indian community, an official introduction matters more here than elsewhere.

Agricultural and Processed Food Products Export Development Authority (APEDA)

A statutory body under the Department of Commerce covering buffalo meat, which is India's largest single export line to Vietnam, along with cereals and processed foods. APEDA registers exporters, approves and monitors abattoirs and meat processing plants for export, and handles the sanitary certification Vietnamese authorities require.

Pharmaceuticals Export Promotion Council of India (Pharmexcil)

The Department of Commerce council for pharmaceuticals and API. Vietnam registers imported medicines through the Drug Administration of Vietnam and the process is document heavy and slow. Pharmexcil supports members on dossier preparation, GMP recognition and tender participation in Vietnam's hospital procurement system.

Indian Trade Promotion Organisation (ITPO)

The Department of Commerce body that organises India's official presence at overseas trade fairs and hosts the India International Trade Fair in New Delhi, at which Vietnam regularly participates. For an exporter without a Vietnamese network, an ITPO organised India pavilion at a Vietnamese fair is the cheapest structured way to meet distributors.

Frequently asked questions

What is the first step to start a business in Vietnam as an Indian company

Confirm your activity is open to foreign investment and check Vietnam's WTO commitments and conditional business lines list, since trading, distribution, logistics, education and advertising may carry ownership caps or require sub-licences. Then apply for the Investment Registration Certificate from the provincial investment registration authority.

How much time do I have to contribute charter capital in Vietnam

You must contribute the registered charter capital within 90 days of the Enterprise Registration Certificate issue date through a Direct Investment Capital Account with a licensed Vietnamese bank. If you cannot meet this deadline, you must register the change.

What documents do I need to legalise from India to do business in Vietnam

Certificate of incorporation, charter, board resolution, audited financial statements and bank confirmation of funds must be notarised, apostilled or consular legalised and translated into Vietnamese before submission to Vietnamese authorities.

Do I need a work permit for foreign staff in Vietnam

Yes. Work permits must be obtained before foreign employees start work, supported by legalised degree certificates, at least three years of relevant experience evidence, a criminal record check and a health certificate. Temporary residence cards are then required.

What are the most common business structures for Indian investors in Vietnam

Most Indian investors use a 100 percent foreign owned limited liability company, a joint venture LLC with a Vietnamese partner, or a joint stock company. A representative office is available for market research without trading activities.

Is Vietnam a good market for Indian pharmaceutical and food exports

Yes. Vietnam is a genuine growth market for pharmaceuticals, API, buffalo meat, fishery products, machinery, auto components, chemicals, cotton and animal feed. ASEAN-India Trade in Goods Agreement preference makes Indian goods more competitive than most non-ASEAN sources.

Before you apply: confirm every date, fee and eligibility rule on the official website linked on this page. Public and Policy is an independent portal, not a government body, and details change without notice.