The Real Cost of Setting Up a Company in Vietnam (Updated Guide)

For many foreign investors, the primary question when establishing a company in Vietnam is the initial investment. Besides the minimum paid-up capital required for incorporation, what other expenses should you prepare for when starting a business in Vietnam?

In this guide, we break down the costs of setting up a company in Vietnam. We will take into consideration regulatory updates in 2025 and 2026 (e.g. abolition of the Business License Tax in 2026, etc.). We will also cover expenses during the setup phase, infrastructure, and ongoing compliance costs. 

The Setup Phase (Direct Incorporation Costs)

When you first decide to establish a company in Vietnam, you need to comply with the incorporation requirements. This phase includes mandatory fees paid to the government and the essential tools required to activate your company’s legal status. 

Official Government Fees

To encourage Foreign Direct Investment (FDI), the Vietnamese government has made official government fees accessible by keeping administrative barriers low. This approach reflects a broader national policy of “e-government” transition under Decree 168/2025/ND-CP (effective July 1, 2025). This shift essentially eliminates the base registration fee for companies using the National Business Registration Portal. 

• Enterprise Registration Certificate (ERC): Under the standard fee schedule of Circular 47, the fee is VND 50,000 (~$2). However, per the current e-government incentives, this fee is waived ($0) for all applications submitted online via the National Business Registration Portal.
• Public Announcement Fee: A newly formed company must publicly disclose its registration details. The mandatory fee for this announcement on the National Portal is fixed at VND 100,000 (~$4) and must be paid at the time of dossier submission.

Effective March 1, 2026 under the Amended Investment Law (Law No. 143/2025/QH15), you can now obtain an ERC and establish a legal entity before securing an IRC. 

Physical & Digital Identity

As a business in Vietnam, you must acquire a specific set of physical and digital tools that serve as your company’s official legal signature. These allow you to  authenticate your legal identity, authorize documents, and participate in the national tax system as a corporate entity:

• The Corporate Seal (The “Chop”): In Vietnam, the red circular seal is often more important than a signature. Carving a standard seal costs between VND 200,000 and 500,000 ($8 – $20).
• Digital Signature (USB Token): You cannot file taxes or sign electronic contracts without a digital signature. A 3-year subscription typically costs between VND 2,000,000 and 3,000,000 ($80 – $120).
• Electronic Invoicing (E-invoices): Paper invoices are a thing of the past. You’ll need to purchase a “package” of e-invoices (e.g., 500 invoices). Expect to pay around VND 1,000,000 to 2,000,000 ($40 – $80) for a standard starter pack.

Charter Capital (Your “Statutory Declaration”)

A Charter Capital represents a significant financial commitment that you must legally pledge and subsequently inject into the Vietnamese economy. It serves as your company’s initial equity and operational fuel in the early stages of your business. This financial pledge is recorded on your ERC. 

In general, Vietnam has no official minimum capital. However, the Department of Planning and Investment (DPI) will look into the scale of your investment. . For example, if you propose to run a factory with only USD $1,000, your application will likely get rejected. In practice, USD $10,000 – USD $15,000 serves as a widely accepted standard.

There are also sectors that require higher capital investment. Here are some examples:

• Real estate trading: VND 20 billion (approx. USD 800,000).​
• Fintech or payment services: VND 50–300 billion (USD 2–12 million).
• Insurance: VND 750 billion+ (USD 30 million+).​

For more details on capital requirements for specific business activities, you can get in touch with our local experts in Vietnam for a free consultation. 

The Infrastructure Phase (Professional & Office Costs)

This is where the bulk of your Charter Capital will go. This phase of the company setup process involves setting up your place of business, employing your staff, and partnering with local consultants (like Emerhub) to get you started. 

Office Space & Registered Address

To secure a valid business license in Vietnam, you must prove that your company has a legitimate, commercial-grade headquarters. Both virtual and physical offices are accepted but it needs to match your business activity.  

During the registration process, the DPI will scrutinize your lease agreement and land-use certificates. The agency will look at your location to verify if you have the right facilities according to your business activity. For instance, you can’t register a manufacturing company if you only have a virtual office. 

Here is a breakdown of the costs for either a virtual office or a physical office in Vietnam:

• Virtual Offices: For startups or consultants, a virtual office is the most cost-effective route. It provides a legal address for registration and mail handling. These range from $100 to $200 per month.
• Physical Offices: If your business requires a physical presence, Ho Chi Minh City and Hanoi are the most expensive. A Grade A office space can cost $40 – $60 per square meter, while Grade C or co-working spaces might be $15 – $25. 
• Signage & Admin: You are legally required to hang a company sign outside your registered address. A simple acrylic sign costs about VND 500,000 ($20). If the police inspect and find no sign, you can be fined up to 30 million VND.

Human Infrastructure (Local & Foreign Hires)

Building your team in Vietnam requires a deep dive into two very different financial and regulatory ecosystems. Whether you are looking for local talent to scale operations or specialized foreign experts to lead technical departments, you should budget for the hidden employer costs that extend far beyond the base salary.

If you plan to personally oversee the business on the ground, you must also obtain an Investor Visa. The cost usually depends on your capital contribution. For example, large investors with USD $1 million can apply for long-term permits up to 10 years. Meanwhile, small investors (<$130,000) usually receive 1-3 years, costing about USD $400 – USD $800. 

You can ask our local experts about how to process an investor visa in Vietnam by filling out the form below. 

Professional Service Fees

As a foreigner, navigating through the incorporation process can be a complicated process. It’s not just about understanding the local language, it’s also about catching  the “unwritten” procedural expectations and managing the intricate relationship between various provincial departments. 

For example, because the law does not state a minimum capital, a provincial officer in Ho Chi Minh City might informally reject a $1,000 capital pledge as “unfeasible,” whereas an officer in a smaller province like Long An might be more flexible. 

Here are the professional fees you should take into account:

• Legal & Consultancy Services: Most reputable agencies charge between $2,500 and $5,000 for a standard Incorporation Package. This usually includes the IRC, ERC, seal, and initial tax registration. 
• Translation & Notarization: All your foreign documents (passports, parent company certificates) must be “Consularly Legalized” in your home country and then translated/notarized in Vietnam. Budget USD $300 – USD $700 for this, depending on the volume of documents.
• Monthly/Quarterly Bookkeeping: You are required to submit reports even if you have zero revenue. Professional accounting services for a small firm typically cost $100 – $300 per month.
• The Mandatory Annual Audit: Every foreign-owned company must have its annual financial statements audited by an independent Vietnamese auditing firm. For a small company, expect to pay USD$1,500 – USD$3,000 per year for this audit.

Summary of Total Cost for Starting a Company in Vietnam

To help you visualize how your first year would look in terms of expenses, here are some case studies comparing the cost of a small IT startup and a manufacturing company. 

Case Study 1: Small IT Services Firm (Ho Chi Minh City)

Profile: A single-founder software development startup using a virtual office in District 1.

Expense Category	Estimated Cost (USD)	Details
Initial Setup	~$3,500	Standard service-package incorporation (IRC & ERC)
Charter Capital	~$15,000	Equity used for laptops, initial server costs, and salaries
Annual Office	~$1,800	Virtual office in District 1 ($150/month)
Annual Accounting	~$1,800	Basic bookkeeping and tax filing ($150/month)
Annual Audit	~$1,500	Statutory audit for a small foreign firm
Outcome	Under $10,000	Total first-year “sunk” costs (excluding capital equity)

Case Study 2: Medium Manufacturing Enterprise (Bac Ninh)

Profile: A foreign-owned electronics assembly plant leasing a 1,000sqm Ready-Built Factory (RBF) in an Industrial Park.

Expense Category	Estimated Cost (USD)	Details
Initial Setup	~$8,000+	High complexity (IRC, Fire Safety, Environmental Impact)
Factory Infrastructure	~$45,000	3-month security deposit + upfront lease for 1,000sqm
Human Infrastructure	~$2,500	Work Permits and TRCs for 3 expat technical leads
Annual Accounting	~$3,600+	Higher volume (50+ local staff payroll, complex reporting)
Annual Audit	~$4,000	Mandatory audit for high-transaction industrial entity
Outcome	$60,000 – $100,000	Total first-year costs (before machinery or raw materials)

Starting a company in Vietnam requires not only capital but also an in-depth understanding of local compliance. Emerhub can help you streamline the incorporation process by managing the entire workflow from business name reservation to securing an ERC. We can help you with sector-specific permits, virtual office addresses for compliance without physical space, and post-registration obligations like tax code setup. 

Tell us about your plans to start a business in Vietnam! Talk to our local experts for a free consultation.