ISO 27001: Information Security Management
150+ Vietnam FIEs: Active ongoing compliance clients
200+ Incorporations: Foreign companies set up in Vietnam
South Korea, Singapore, Japan, Taiwan and Hong Kong lead Vietnam's FDI inflows, with 17 free trade agreements supporting 41,000+ active projects. Indian companies navigate FEMA and Vietnam's IRC/ERC simultaneously. Korean and Japanese groups manage Decree 20/2025 transfer pricing. VJM Global provides entity setup, tax and compliance.

Vietnam recorded 8.02% GDP growth in 2025 — its strongest since 2011 — driven by manufacturing expansion and registered FDI approaching USD 500 billion across 41,720 active projects. Seventeen free trade agreements, including EVFTA, CPTPP and RCEP, give manufacturers preferential access to EU, UK and Asia-Pacific markets from a single production base. Corporate income tax falls to 10% in qualifying economic zones, and infrastructure investment in Vietnam's manufacturing clusters is accelerating.
Vietnam's 17 active FTAs — EVFTA, CPTPP, RCEP and UKVFTA among them — provide preferential tariff access to the EU, UK, Japan, Australia, Canada and ASEAN. Few countries at Vietnam's development stage offer comparable treaty coverage for export-oriented investors.
Qualifying investments in economic zones and high-technology parks attract a 10% corporate income tax rate for up to 15 years. The standard 20% rate applies outside these zones. The Global Minimum Tax (QDMTT, effective 2024) applies to MNC groups above EUR 750 million revenue.
Vietnam's 98 million population includes a median age of 31 and a rapidly expanding technical and vocational education base. Government training partnerships with Korean and Japanese manufacturers have built a skilled electronics assembly and precision manufacturing workforce.
Vietnam's manufacturing clusters in Bac Giang, Binh Duong, Dong Nai and Hai Phong are purpose-built for China+1 relocation. Seaport access, industrial zone roads and improving rail links reduce the operational risk of establishing production capacity outside China.
Foreign companies entering Vietnam choose between four legal forms: a limited liability company for operational subsidiaries, a joint stock company for groups with equity listing ambitions, a representative office for market research without revenue activity, or a branch office where Vietnamese law permits. The limited liability company is the most common vehicle. Each structure carries distinct obligations under the Law on Enterprises.
| Feature | LLC | Joint Stock Company | Representative Office | Branch Office |
|---|---|---|---|---|
| Legal Status | Separate entity | Separate entity | Extension of parent | Extension of parent |
| Foreign Ownership | Up to 100% | Up to 100% | N/A | N/A |
| Liability | Limited | Limited | Unlimited | Unlimited |
| Setup Timeline | 30–45 days | 45–60 days | 15–25 days | 45–60 days |
| Activities | All lawful | All lawful | Non-commercial only | Specific approved |
| Taxation | 20% CIT | 20% CIT | No taxable income | Same as LLC |
| Best For | Operational subsidiary | Listed-group subsidiary | Market research | Limited trading |
Foreign companies need two sequential approvals: the Investment Registration Certificate (IRC), issued by the provincial Department of Planning and Investment, confirms the investment project scope; the Enterprise Registration Certificate (ERC) constitutes formal incorporation. Both are required for any LLC or joint stock company. Representative offices need only an RO licence. VJM Global manages the full process.
VJM Global provides foreign companies in Vietnam with a complete compliance and advisory infrastructure: Investment Registration Certificate and Enterprise Registration Certificate filing, Vietnamese Accounting Standards bookkeeping, corporate income tax and VAT compliance, transfer pricing under Decree 20/2025, Social Health and Unemployment Insurance payroll, statutory audit coordination and Foreign Contractor Withholding Tax advisory.
VJM Global works with foreign companies across Vietnam's highest-FDI sectors — electronics and technology manufacturing, automotive components, financial services, pharmaceuticals, retail and professional services. Our professionals have direct experience with transfer pricing, VAS accounting and payroll compliance requirements specific to each sector.
VJM Global serves four primary client groups: companies entering Vietnam for the first time; Indian companies navigating FEMA and Vietnam registration simultaneously; manufacturing groups managing Decree 20/2025 transfer pricing; and established foreign-invested enterprises requiring outsourced VAS accounting, payroll and statutory compliance.
Companies from South Korea, Singapore, Japan, Taiwan, Hong Kong and the United States entering Vietnam need two sequential approvals — the Investment Registration Certificate and the Enterprise Registration Certificate — before commercial activity begins. VJM Global manages the full IRC and ERC process, advises on entity structure, designs the transfer pricing framework for intra-group transactions and sets up VAS accounting and SHUI payroll from day one of operations.
Indian manufacturers in auto components, pharmaceuticals, IT and agro-processing enter Vietnam under China+1 strategies or South Korean and Japanese OEM requirements. VJM Global manages both regulatory environments simultaneously — FEMA outbound investment approval under India's Overseas Investment Rules and Vietnam's IRC and ERC process — alongside transfer pricing policy design, VAS accounting setup and ongoing payroll compliance from month one of operations.
South Korean electronics groups, Japanese automotive manufacturers and Singaporean holding companies face heightened obligations under Decree 20/2025 — tightened arm's-length IQR at the 35th–75th percentile, mandatory Vietnamese local comparables and an extended related-party definition. VJM Global prepares local files, master files and Country-by-Country reports, conducts Vietnamese comparable searches and represents clients in GDT transfer pricing enquiries.
Foreign-invested enterprises where the finance team lacks capacity to manage Vietnam's continuous reporting cycle — monthly VAT by the 20th, quarterly CIT provisionals, annual CIT finalisation within 90 days of year-end, monthly SHUI and statutory audit coordination — engage VJM Global for outsourced compliance. Our ISO 27001-certified India-based delivery provides qualified professional oversight at mid-market pricing across manufacturing, services and technology sectors.
VJM Global holds an uncommon position in the Vietnam advisory market: expertise in both India's FEMA outbound investment framework and Vietnam's IRC/ERC, VAS accounting and Decree 20/2025 transfer pricing. Indian companies entering Vietnam need a single firm managing both regulatory environments without handoffs. That is the model VJM Global provides, built on 35+ years of cross-border advisory experience.
Decree 20/2025 tightened Vietnam's transfer pricing framework: arm's-length IQR narrowed to the 35th–75th percentile, Vietnamese local comparables mandated before regional searches and the related-party definition extended to credit institutions. VJM Global prepares local files and master files to these standards, conducts Vietnamese comparable searches and models QDMTT impact for economic zone investors.
Vietnamese Accounting Standards differ from IFRS and US GAAP in fixed asset treatment, revenue recognition and provisions. Foreign-invested enterprises must maintain VAS-compliant books for statutory audit and tax filings. VJM Global prepares VAS accounts and simultaneously produces IFRS or local GAAP consolidation packages, eliminating the need for separate accounting engagements at Vietnam and group level.
Companies entering Vietnam typically operate across India, Singapore, Japan, South Korea or the EU. Managing compliance through separate local advisors creates coordination risk. VJM Global operates across 75+ countries through its own professionals and the EAI International network — aligning Vietnam compliance with the group's global reporting calendar and transfer pricing framework.
South Korean electronics manufacturers, Singaporean holding structures, Japanese manufacturing groups and Indian companies expanding under China+1 strategies need a firm that understands both home-country obligations and Vietnam's compliance framework. VJM Global provides that — IRC/ERC, Decree 20/2025 transfer pricing, VAS accounting, SHUI payroll and statutory audit from a single qualified team.
Three Vietnam cases — an Indian manufacturer entering via IRC/ERC, a Singaporean group resolving an FCWT enquiry, and a Japanese MNC modelling QDMTT exposure — illustrate VJM Global's advisory depth.
Profile: Indian auto component manufacturer setting up a Vietnam subsidiary for a South Korean OEM customer.
Challenge: FEMA outbound investment approval, Vietnam LLC via IRC and ERC, and a TP framework — within 90 days.
VJM Role: Filed IRC and ERC; managed FEMA RBI notification; designed inter-company TP policy; established VAS accounting and SHUI payroll.
Outcome: Vietnam LLC live in 11 weeks. TP documentation in place before the first cross-border invoice. VAS and payroll outsourced to VJM Global.
Profile: Singapore-domiciled holding company with Vietnam garment manufacturing subsidiaries across three provinces.
Challenge: GDT enquiry challenging DTA benefit entitlement and FCWT on management fees paid to the Singapore parent.
VJM Role: Prepared local file with Vietnamese comparables per Decree 20/2025; filed DTA claim under Circular 80/2021; represented in GDT; recalculated FCWT.
Outcome: GDT accepted the claim. FCWT liability reduced by approximately 40%. Annual TP file now maintained by VJM Global.
Profile: Japanese MNC with EUR 1.2 billion global revenue in Bac Giang under a 10% preferential CIT rate.
Challenge: QDMTT effective January 2024 threatened to raise Vietnam's effective rate to 15%, removing the CIT incentive.
VJM Role: Modelled post-QDMTT effective rate; identified GloBE substance-based income exclusions for payroll and tangible assets; coordinated with Japan group tax on IIR versus QDMTT.
Outcome: QDMTT exposure reduced through GloBE SBIE. Net rate optimised. Group adopted VJM Global's model.
VJM Global provides a full professional services offering for foreign companies in Vietnam. This covers entity setup via Investment Registration Certificate and Enterprise Registration Certificate, Vietnamese Accounting Standards bookkeeping, corporate income tax and VAT compliance, transfer pricing under Decree 20/2025, Social Health and Unemployment Insurance payroll, statutory audit coordination and Foreign Contractor Withholding Tax advisory. For Indian clients, we manage FEMA outbound investment compliance alongside Vietnam registration — handling both frameworks from a single engagement.
A limited liability company in Vietnam requires two sequential approvals. The Investment Registration Certificate typically takes 15 business days after submission. The Enterprise Registration Certificate takes a further five business days. End-to-end from document preparation to ERC issuance is four to eight weeks for a standard LLC. A joint stock company takes six to ten weeks. A representative office can be licensed in two to four weeks. Timelines vary by province, investment sector and completeness of the initial application package.
Decree 20/2025 is Vietnam's updated transfer pricing regulation, effective from the 2024 financial year. It tightened the arm's-length interquartile range to the 35th–75th percentile and mandates Vietnamese local comparables before a regional search may be used. The related-party definition was extended to include affiliates of credit institutions. Any foreign-invested enterprise with intra-group transactions — management fees, royalties, interest or supply chain flows — must maintain a local file, master file and, if applicable, a Country-by-Country report.
Yes. Transfer pricing is one of VJM Global's primary Vietnam practices. We prepare the full documentation suite required under Decree 20/2025: the local file with Vietnamese comparable searches, the master file covering the multinational group, and the Country-by-Country report where applicable. We model QDMTT top-up tax impact for economic zone investors, advise on arm's-length pricing for management fees, royalties and supply chain transactions, and represent clients in General Department of Taxation transfer pricing enquiries.
VJM Global brings three capabilities that distinguish it from other Vietnam advisors. First, transfer pricing depth: direct experience with Decree 20/2025, including Vietnamese local comparable searches, the tightened 35th–75th percentile IQR and QDMTT impact modelling for economic zone investors. Second, the India-Vietnam corridor: we manage FEMA outbound investment and Vietnam entity setup simultaneously. Third, scale at mid-market pricing: 100+ qualified professionals, 1,500+ clients, ISO 27001 certification and EAI International coverage across 145+ countries.
Yes. Most of our Vietnam engagements are ongoing. After entity setup, we manage the continuous compliance cycle: monthly VAT filings, quarterly CIT provisional payments, annual CIT finalisation within 90 days of year-end, SHUI payroll, statutory audit coordination and annual PIT finalisation for expatriates. For transfer pricing clients, we maintain the local file annually with updated Vietnamese comparables. We also provide annual QDMTT impact reviews for economic zone investors affected by the Global Minimum Tax from 2024.
Foreign-invested enterprises in Vietnam report to multiple authorities: the General Department of Taxation for CIT, VAT and transfer pricing; the Ministry of Labour for SHUI; Vietnam Social Security for insurance; and provincial Departments of Planning and Investment for investment certificate renewals. VJM Global maintains a structured compliance calendar covering all deadlines, assigns a dedicated compliance manager and provides advance notification for all filings. For Indian clients, we coordinate this with parallel FEMA reporting obligations to the Reserve Bank of India.
VJM Global works across Vietnam's primary FDI-receiving sectors: electronics and technology manufacturing (Samsung supply chain, Foxconn, Pegatron), automotive and components (Toyota, Honda, South Korean OEM tier-1 suppliers), financial services and holding structures (Singapore-domiciled entities with Vietnam subsidiaries), pharmaceuticals and healthcare (Japanese and multinational groups), textiles and garments (EVFTA-driven EU exporters), and professional services (US, EU and Indian firms establishing delivery centres in Vietnam).
VJM Global operates across 75+ countries. Our teams in India, UAE, Singapore and the UK deliver the same compliance infrastructure across South Asia, the Gulf and European markets.
Whether you are entering Vietnam for the first time, managing a Decree 20/2025 transfer pricing audit, or requiring ongoing Vietnamese Accounting Standards bookkeeping, payroll and statutory compliance for an established subsidiary, VJM Global's qualified professionals are ready to discuss your requirements.
Book a free consultation to discuss your Vietnam entry strategy, transfer pricing obligations, VAS accounting setup or ongoing compliance requirements. We support companies at every stage — from pre-incorporation due diligence to annual statutory audit coordination.
Download VJM Global's Vietnam Business Guide covering entity structures, IRC and ERC, corporate income tax, transfer pricing under Decree 20/2025, VAT, SHUI payroll and global minimum tax impact on economic zone investments.
ISO 27001: Information Security Management
150+ Vietnam FIEs: Active ongoing compliance clients
200+ Incorporations: Foreign companies set up in Vietnam
India Office: 0120 4415477-78
WhatsApp: +91-9891576441
Email: [email protected]
Website: www.vjmglobal.com
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