From my perspective after 15 years on the ground, Vietnam's banking sector is undergoing a period of remarkable expansion, making it a focal point for global financial institutions from Southeast Asia and beyond.

Reflecting the Vietnamese market's potential, the updated figures from the State Bank of Vietnam (March 30, 2025) show that the country's current structure hosts 9 wholly foreign-owned banks, 56 bank branches in Vietnam, 63 representative offices, and 2 joint ventures.

With this growing international presence in Vietnam, I'm seeing many foreign investors actively exploring the best strategies for establishing a foothold, with many starting their journey in key hubs like Ho Chi Minh City.

This article, drawing insights from our comprehensive Ebook, is where I share the practical guidance on the regulations, entry modes, and strategies I believe you will need to successfully establish a bank in Vietnam.

Key Takeaways:

• A Thriving Market: I believe Vietnam’s strong macroeconomic performance provides a stable and high-growth environment for foreign banks to operate and expand their banking services.
• Multiple Entry Options: Foreign investors can choose from several entry modes, including a representative office, bank branches in Vietnam, a wholly foreign owned bank, and a joint venture bank, each with distinct strategic implications that we'll discuss.
• Updated Legal Framework: Recent legislative changes have created new opportunities and requirements. From what I've seen, the Law on Credit Institutions 2024 and Decree 69/2025 have opened up opportunities by raising the total foreign ownership limits in specific cases.
  In addition, the Law on Anti-Money Laundering 2022 imposes stricter requirements regarding customer due diligence and international cooperation. We've also seen regulations on IT system security and risk management also been tightened through legal documents such as Circular 50/2024 and Circular 62/2024.
• Strategic Growth Beyond Entry: I always stress that success in Vietnam extends beyond the initial establishment license to include strategic equity investments, M&A, and capitalizing on the rapidly growing digital banking and fintech sectors.
• Overcoming Key Challenges: Establishing a presence in Vietnam requires overcoming significant hurdles such as high legal capital requirements, a lengthy approval process, and strong domestic competition.

I. Choosing Your Entry: Key Modes For Foreign Banks in Vietnam

From my experience managing client relationships at Viettonkin, the first and most critical decision an investor makes is choosing the right entry structure. This choice dictates your operational scope, capital requirements, and timeline.

1. Representative Office Or Branch Office

This is the most basic presence, limited to liaison and promotional activities, not revenue generating activities. A representative office is not considered a separate legal entity.

The primary advantage is the quick licensing time of just 30 to 60 days.

2. Foreign Bank Branches In Vietnam

A branch in Vietnam is permitted to conduct business operations but requires an unequivocal guarantee from its parent bank.

The licensing process is extensive, and I typically advise clients to plan for 200 to 250 days to secure the necessary banking license, and its activities are restricted by specific SBV rules. These legal entities must be fully backed by their head offices in foreign countries.

3. Wholly Foreign-Owned Bank In Vietnam

This structure offers the highest degree of operational autonomy and permits a full range of banking services.

It demands a significant minimum charter capital of at least VND 3,000 billion (approximately USD 130 million) and strict adherence to international practices. To get approval, applicants must submit audited financial statements and detailed business plans.

4. Joint Venture Bank And Business Cooperation Contract

A joint venture bank involves a partnership with one of the local Vietnamese banks, providing immediate market insight.

The foreign ownership ratio is typically 30%, though this can rise to 49% for restructuring banks. A business cooperation contract offers an alternative collaboration model without forming one of the new legal entities, allowing for the sharing of jointly controlled assets for specific projects.

II. Understanding The Regulatory Framework: Key Laws Governing Your Entry

Once you have a potential entry mode in mind, understanding the legal landscape is the next critical step.

The legal documentation can seem straightforward until it meets Vietnamese regulatory reality. The Law on Credit Institutions 2024 has introduced stricter licensing and governance standards, while new circulars from the State Bank of Vietnam (SBV) address everything from M&A rules (Circular 62/2024) to cybersecurity for online banking (Circular 50/2024).

A critical development is Decree 69/2025. According to VOV English (2025), this decree officially expands the foreign ownership ratio, raising the cap to 49% for banks undergoing banking restructuring.

This is a significant shift. S&P Global (2024) previously noted how the old 30% cap held back foreign investment.

This change reminds me of a client whose investment was nearly blocked by the old rules. From our experience, we engineered an alternative ownership structure using nominee arrangements that fully protected his investment activities while ensuring compliance.

III. Mastering The Approval Process: From Application To Operation

I always tell my clients that getting a banking license from the State Bank of Vietnam (SBV) is no small task. Foreign investors should expect a rigorous multi-stage process that requires careful preparation and patience.

1. The journey begins with a detailed application, where banks must submit audited financial statements, a business plan, and a comprehensive risk management framework.
2. Once the application is submitted, the SBV conducts an extensive review, focusing on the parent bank's financial health, compliance with international standards, and leadership background.
3. If successful, the SBV issues the establishment license. However, to officially launch, banks must also obtain an Investment Registration Certificate (IRC), complete legal capital contributions, and implement all necessary systems.

Based on our experience, these are the approval timelines:

• Representative Office: 30–60 days.
• Bank Branch: 200–250 days.
• Wholly Foreign-Owned Bank: 200+ days, depending on complexity.

IV. Growing Your Presence: Strategic Insights For Long-Term Success

I always emphasize that securing a license is the beginning, not the end. Long-term success in Vietnam involves strategic growth.

1. Strategic Equity Investments In Banks In Vietnam

Strategic investors can acquire up to 30% of a local bank's charter capital, or up to 49% in restructuring cases. I've seen these equity investments are crucial for driving digital transformation and improving corporate governance, allowing a foreign partner to influence strategy.

2. Mergers And Acquisitions In The Banking Sector In Vietnam

M&A is a powerful tool for rapid market entry and expansion that I often recommend to clients. According to VIR’s Vietnam 2025 M&A Outlook: Trends, Deals, and Opportunities, in 2024 the sector saw 96 deals worth USD 3.2 billion, fueled by capital contributions from Japan, Korea, and Singapore.

The acquisition of GPBank by VPBank in 2025 is a notable example of this trend.

3. Digital Banking And Fintech Collaboration

With Decree 94/2025 establishing a regulatory sandbox, I see that Vietnam is actively encouraging innovation. This has led to powerful strategic partnership collaborations between banks and fintech platforms like MoMo and bePOS, creating new opportunities in digital financial services.

V. Anticipating The Hurdles: Key Challenges In The Vietnamese Market

While the opportunities are significant, so are the challenges. I always prepare investors for the reality of high legal capital requirements and lengthy, complex approval processes.

The domestic banking sector is highly competitive, especially in the digital arena, and compliance with international practices like Basel and IFRS adds costs.

I often advise clients that strategic planning is key. Take our long-term manufacturing client who trusted us with their expansion across five provinces.

The challenge was immense, but our systematic regulatory planning and proactive compliance monitoring led to a 300% growth in their investment value over four years. This same proactive approach is essential for navigating the banking sector.

VI. Your Roadmap To Success

From my experience, I can say that entering Vietnam’s banking sector is a promising but complex venture.

Understanding the entry modes, mastering the regulatory landscape, and planning for strategic growth are the keys to turning that promise into a successful reality.

Get the full step-by-step guidance on regulations, licensing, and strategies in our Ebook Foreign Bank Presence in Vietnam. 

Download the complete guide here: Foreign Bank Presence In Vietnam Ebook.

Frequently Asked Questions

How long does it actually take to obtain both the Investment Registration Certificate (IRC) and the banking license from the State Bank of Vietnam (SBV)?
In practice, the timeline is longer than the statutory guidance. The IRC can usually be secured within 60–90 days, provided the dossier is complete. The banking license review by the SBV often extends the overall process to 12–18 months, depending on the complexity of the application, the responsiveness of the parent bank, and the quality of supporting documents.

Are foreign banks restricted from opening multiple branches in different provinces at the same time?
Yes. Under SBV regulations, a newly licensed foreign bank or branch must demonstrate stable operations and compliance in its initial location before applying for additional branches. The SBV typically requires at least 2–3 years of proven performance and regulatory compliance before granting approval for expansion into other provinces.

How does the SBV assess technology capacity and information security when licensing foreign banks?
The SBV places strong emphasis on digital resilience and cybersecurity. Applicants must submit detailed documentation on IT infrastructure, data protection systems, and cybersecurity protocols. Independent audits or certifications aligned with international standards (e.g., ISO/IEC 27001) are often requested. During the licensing process, the SBV evaluates whether the proposed systems can support secure online banking, anti-money laundering monitoring, and customer data protection in line with Vietnamese law and international best practices.

Vietnam’s pharmaceutical industry is entering a decisive turning point. Stricter quality standards, shorter recall deadlines, and tighter compliance requirements are no longer abstract ideas. 

They are becoming legal reality with Circular 30/2025/TT-BYT. For foreign investors and international pharmaceutical companies, this shift represents both a challenge and an opportunity: the challenge of higher compliance costs, and the opportunity to capture growth in testing services, R&D partnerships, and high-quality manufacturing.

In my experience supporting foreign investments at Viettonkin, I have seen that the greatest risks often come not from the written laws themselves, but from how they are applied in practice. 

That is why helping our clients anticipate and adapt to these unwritten rules has become the foundation of long-term success in Vietnam’s evolving pharmaceutical market.

Key Takeaways:

• Circular 30/2025/TT-BYT will introduce stricter quality standards and faster recall deadlines for all pharmaceutical products, impacting the entire pharmaceutical market.
• Foreign investors and international pharmaceutical companies must prioritize understanding the new compliance landscape to ensure continued growth.
• While compliance costs may rise, new regulations create significant growth opportunities in testing services, R&D partnerships, and high-quality manufacturing for many companies.
• Strategic local partnerships are essential for pharma companies to navigate government agencies and ensure smooth market entry and long-term growth.
• Success in Vietnam's evolving pharmaceutical market hinges on treating regulatory compliance not as a hurdle, but as a core strategy for sustainable growth.

I. The New Playing Field: How Circular 30/2025 Reshapes Vietnam’s Pharmaceutical Sector

The Vietnamese government’s goal is clear: align the local pharma industry with international standards. This will improve public health and boost competitiveness for all companies involved. Circular 30/2025/TT-BYT is the primary instrument for this change. 

From my experience helping hundreds of companies navigate regulatory shifts, this is a moment of both risk and opportunity.

This is not just about updating paperwork. An expert analysis from Tilleke & Gibbins (2025) confirms that the new guidelines will enforce stricter drug quality standards and significantly shorten timelines for recalls. 

This is a major challenge that puts immense pressure on the supply chain management of all pharmaceutical companies. This move from the Ministry of Health replaces a previous circular, demanding a higher level of vigilance from all companies in the pharma sector.

For foreign investors, clarity is paramount. The official English translation of the circular, which legal portals like LuatVietnam (2025) provide, becomes an essential tool for foreign direct investment. However, the text alone is not enough. 

Understanding its practical application requires on-the-ground experience, especially when dealing with the many companies that form the local supply chain.

II. Vietnam’s Pharmaceutical Industry: A Market Of Contrast And Opportunity

Vietnam’s pharmaceutical market is one of the most dynamic in Southeast Asia, reflecting trends seen across the global pharmaceutical market. It's a key market among developing countries, driven by rising incomes and a growing demand for quality healthcare. 

Yet, it remains a challenging landscape for many companies where local manufacturing capabilities are still catching up.

The demand for high-quality generic drugs, biologics, and other pharmaceutical products is soaring. However, over half of the active ingredients are still imported, creating vulnerabilities. 

For smaller pharma companies, these stricter regulations present a hurdle. The high costs of upgrading facilities to meet Good Manufacturing Practice (GMP) standards can be overwhelming for these companies.

This is where proactive compliance becomes a lifeline. I think of our client whose permit was at risk. The challenge wasn't just the timeline; it was a complex regulatory issue threatening one of the many international companies seeking growth in Vietnam. 

Our team’s emergency coordination with government agencies saved their investment and achieved a 30% faster processing time, a precedent that has since benefited other companies.

III. From Compliance Burden To Competitive Advantage: Opportunities In The New Era

While the new rules demand more, they also create fertile ground for growth and investment for prepared pharma companies.

1. Building Trust And Opening Export Doors

Meeting international standards is no longer just a compliance exercise; it’s a powerful market differentiator. For our clients, achieving these standards has built trust with healthcare professionals and opened export opportunities. 

This is the essence of healthcare innovation in Vietnam today, turning quality control into a competitive advantage for companies.

2. A Booming Market For Testing And R&D Partnerships

The intensified focus on quality creates a market gap, presenting a prime opportunity for companies specializing in GMP/GLP testing. Furthermore, to close the R&D gap, Vietnamese pharma companies are seeking partnerships. This is driving investment in clinical trials for new molecular entities and other breakthrough medicines. 

With its large population, Vietnam is an attractive location for clinical trials, a sector poised for growth as more companies look to diversify research.

3. Emerging Growth Segments And A Reshaped Global Landscape

The pharmaceutical/drug business has several high-growth segments, many of which were profoundly shaped by the recent global health crisis. The pandemic massively impacted the global pharmaceutical industry, accelerating R&D at an unprecedented rate and reshaping global spending on healthcare. 

The race for a vaccine highlighted the power of scientific breakthroughs, and the lessons learned from that period are now being applied to other infectious diseases.

For all companies, the post-crisis landscape has created a new operational basis. The supply chain disruptions during the public health emergency forced a strategic rethinking, underscoring the critical need for local production, a huge opportunity for companies to invest in manufacturing within Vietnam.

This experience has made the entire pharma industry more resilient, a quality that was tested again in the previous year. The world after COVID 19 is simply different for all companies, and their strategies continue to reflect this new reality.

The market for generic drugs is also set for expansion. The looming patent expiration for several blockbuster branded drugs from top pharma companies like Merck & Co and Eli Lilly presents a massive opportunity. 

The loss of market exclusivity due to patent expiration can lead to lower sales for a drug company, which must be partially offset by higher sales from other pharmaceutical products in their product portfolio. 

For Merck & Co, its patent protection on key drugs is vital, but the company also relies on its animal health and diagnostics division, where revenues rose in the same period that drug sales fell in the previous year. The constant cycle of patent expiration is a key focus for all leading companies. 

A looming patent expiration forces companies to innovate in their core therapeutic areas. A company like Merck & Co consistently invests in R&D for new molecular entities across multiple therapeutic areas.

IV. Your Strategic Blueprint For Success In Vietnam’s Pharma Market

Navigating this new landscape requires a robust, proactive strategy focused on compliance and partnership for all companies.

1. Navigating Compliance With An Audit-Ready Mindset

The starting line is being audit-ready from day one. I remember the relief in a client’s voice after we resolved their emergency audit. The audit began with 24-hour notice, threatening their license. 

Our team’s systematic approach, leveraging documentation and agency relationships, resulted in a clean audit for one of the many companies we protect. This experience helped us develop protocols that now proactively protect all our client companies.

2. Local Partnerships: Your Key To Smoother Market Entry

For foreign companies, trying to go it alone is a costly mistake. Collaborating with local manufacturers and experienced advisory firms is critical. As Thư Viện Pháp Luật (2025) outlines legal requirements, a local expert translates them into actionable steps for companies.

V. The Future Is Bright, But Preparation Is Key

Vietnam's pharmaceutical industry is on an upward trajectory. The alignment with global standards and strong government support create a powerful engine for long-term, sustainable growth. The global pharmaceutical market, especially the competitive US market, sets a high bar. 

In the fourth quarter of the previous year, many leading companies reported that increased sales in some therapeutic areas were partially offset by challenges in others. Global sales continue to show a positive growth profile.

Investors must prepare for risks. For a major player like Merck & Co, even one weak quarter can affect net sales compared to the previous year. The focus remains on innovation in key therapeutic areas to drive growth and deliver new drugs. 

The development of molecular entities is critical for long-term success. The growth in therapeutic areas such as oncology and cardiovascular renal metabolic diseases is a key focus for companies like Merck & Co. Success in this pharmaceutical market hinges on a diverse product portfolio and robust patent protection. 

When a patent expires, it tests the resilience of even the largest companies. Over the past two decades, the global pharmaceutical industry has seen this cycle repeat. Even with strong performance in the previous year, all companies plan for future patent cliffs.

VI. Conclusion

As Vietnam’s pharmaceutical sector enters a phase of regulatory transformation, Viettonkin Consulting stands ready as your strategic partner, helping international businesses turn compliance pressures into meaningful competitive advantages. 

With many years of experience advising foreign direct investment, our multidisciplinary  team spanning legal, tax, compliance, audit, and advisory services has supported numerous multinational corporations through Vietnam’s regulatory landscape while seizing growth opportunities in testing, R&D, and high-quality local manufacturing.

At Viettonkin, we understand that sustainable success in Vietnam’s pharmaceutical market is built upon:

• A proactive, audit-ready compliance strategy
• Trusted partnerships with local industry and authorities
• A forward-looking vision focused on long-term growth

Let us guide your business confidently through this evolving regulatory environment, transforming challenges into opportunities for lasting achievement.

You may also be interested in our recent article on Navigating Vietnam’s Customs Clearance: Essential Insights for Foreign Investors, which explores practical steps to streamline import and export procedures in Vietnam.

Frequently Asked Questions

1. What is the biggest mistake foreign pharma companies make when entering Vietnam?

In my experience, the biggest mistake is underestimating the importance of practical relationships with regulatory bodies. Many pharmaceutical companies have perfect legal paperwork but fail because they don't understand the specific expectations of local authorities, where a trusted local partner becomes invaluable.

2. Realistically, how long does it take for companies to become fully compliant with Circular 30/2025?

While legal transition periods are defined, achieving full operational compliance can take 6 to 12 months for most companies. This includes upgrading facilities, training staff on new recall procedures, and validating supply chains, all of which must be done meticulously to ensure growth.

3. Should my drug company partner with a local firm or navigate compliance alone?

Based on hundreds of cases, partnering with a local expert is the most effective way to protect your investment. The cost of a compliance crisis, a failed audit, or a rejected permit for any of the companies involved far outweighs the investment in securing experienced guidance from the start.

Tired of global shocks revealing gaps in your supply chain? Recent events make clear: relying on one hub is no longer viable under evolving trade and investment laws. As a strategic consultant with twenty years’ experience advising on multinational manufacturing ventures—and well‑versed in Vietnam’s Investment Law and new Land Law—I’ve witnessed that shift firsthand. Global leaders are now looking to dynamic markets like Vietnam, attracted by its growing role in global supply chains, to build the agile, diversified supply chains of the future. This isn’t just a trend; it’s a strategic imperative.

Key Takeaways:

• Vietnam is a Strategic Hub: Beyond cost savings, Vietnam’s placement along the Trans‑Asia Railway and major shipping lanes—backed by the amended Land Law 2025—de‑risks your supply chain and delivers geopolitical leverage.
• FDI Surge in Manufacturing: Registered FDI hit $11.52 billion in Jan–May 2024 (Ministry of Planning & Investment), with disbursement rates at a record high—proof that the Law on Investment 2020 (amended 2025) is working.
• Follow a Legal Roadmap: From securing your Investment Registration Certificate (IRC) under Decree 31/2023/NĐ‑CP to factory permits per Decree 35/2024/NĐ‑CP, a methodical, law‑driven process is non‑negotiable.
• 2025 Law Updates: The Land Law 2025 clarifies land-use rights in industrial parks; Decree 65/2024/NĐ‑CP on global minimum tax aligns Vietnam with OECD standards, boosting predictability for manufacturers.
• Agility over Arb: Vietnam’s flexible industrial‑park leasing rules and IT‑backbone investments (5G zones) enable rapid scale‑up—far beyond mere labor arbitrage.

Why Vietnam is a Strategic Manufacturing Hub in 2025

Vietnam vs. China: Total‑Landed Cost & Policy Risk

For years, comparisons focused on Vietnam’s lower labor rates. Today, total‑landed cost—including tariff risk under Section 301 and geopolitical premiums—makes Vietnam’s neutrality compelling. It’s total landed cost which includes the growing risk premium associated with geopolitical tensions. Vietnam offers a powerful combination of competitive labor costs and, crucially, geopolitical neutrality. In addition to lower labor costs, Vietnam’s skilled workforce sets it apart as a key differentiator, able to handle complex manufacturing tasks in the electronics industry.

Compared to other countries in the region, Vietnam’s cost advantages and qualified labor force can compete globally in high-tech manufacturing sectors. Its participation in major free trade agreements like CPTPP and EVFTA provides preferential access to global markets that is getting harder to get from other hubs.

The FDI Surge: What Foreign Investors See in Vietnam

The numbers don’t lie. Ministry of Planning & Investment data shows registered FDI of $11.52 billion in Jan–May 2024, with disbursements at a record 85% of registrations—underscoring confidence in the Investment Law 2020 (amended 2025). As reported by VietnamPlus, this trend proves the country’s policies are working to create a stable and attractive investment environment. The manufacturing and processing industry is still the main attraction, a clear sign of its central role in the supply chain diversification story.

Foreign investment has been a key driver of growth in Vietnam’s manufacturing and processing industry and economic development and export performance.

Workforce: Educated, Scalable, Affordable

Vietnam’s advantage is amplified by its people. You get access to a young, tech-savvy and highly motivated workforce. With a median age of 32, the labor pool is not just affordable but also adaptable and eager to learn new skills. For foreign companies, investing in training and upskilling programs is not just best practice; it’s a game-changer that unlocks huge productivity and loyalty.

Good working conditions are essential to attract and retain top talent in Vietnam’s manufacturing sector.

Key Manufacturing Sectors and Regional Clusters

Sector Deep Dive: Electronics, Textiles, Furniture

Vietnam has become a global player in several key sectors with the capability to manufacture a wide range of products across industries. It’s a critical node in the electronics supply chain for global brands, able to manufacture high-tech products like integrated circuits. Textile and garment is a long-standing pillar, known for quality and capacity. Furniture has seen explosive growth and Vietnam is now a major player in the global furniture industry and attracting international brands like Ashley Furniture. For investors, sector insight into each sector’s compliance and infrastructure landscape is key to success.

Regional Strategy: North vs. South vs. Central

Where you set up matters. Industrial zones play a crucial role in supporting regional manufacturing clusters, offering strategic locations, infrastructure and incentives that drive industrial growth and attract investment.

• North (Hanoi–Haiphong Corridor): Electronics and auto OEMs thrive under Decree 111/2023/NĐ‑CP in zones like Dinh Vu–Cat Hai (deep‑water port access), benefitting from CPTPP tariff preferences.
• South (Ho Chi Minh City Region): As the commercial hub, the South has the best logistics and largest labor pool, perfect for labor-intensive industries like textiles and furniture.
• Central (Da Nang): This region is emerging as a hub for high-tech, IT and mid-sized manufacturing with a great balance of cost, talent and quality of life.

Local Ecosystem Health: Inputs, Logistics, Utilities

A factory doesn't operate in isolation. You need to assess the entire ecosystem, which includes a diverse range of inputs and resources. While Vietnam is strengthening its domestic supply chain for raw materials, some inputs still need to be imported. It's crucial to review raw-material sourcing in compliance with the Customs Law 2014 (amended 2024). The government is investing heavily in power grid stability, with utilities governed by Decree 108/2024/NĐ-CP. Furthermore, the country's expanding port system, particularly major hubs like the Cai Mep–Thi Vai Port, is enhancing freight reliability, a critical factor for any export-oriented operation.

Step-by-Step Roadmap for Setting Up Manufacturing in Vietnam

A successful market entry is not about speed; it’s about a disciplined sequential process.

Before entering the Vietnamese market, you must develop a comprehensive business plan that outlines your manufacturing process, market analysis, financial projections and operational strategy.

Pre-entry Assessment: What to Decide Before Incorporation

Before you even think about legal forms, you need a clear strategy. Does your product have a market fit in the region? Understanding the Vietnamese market—including local demand, supply chain dynamics and regulatory environment—is key to assessing product-market fit. What is your ownership structure, your intellectual property protection plan and your long-term exit strategy? Aligning these strategic decisions with your global headquarters from day one is a risk-free strategy.

Company Formation: From MOUs to Ministry Approval

The formal incorporation process involves getting an Investment Registration Certificate (IRC) and an Enterprise Registration Certificate (ERC). Getting the IRC is a key step in formalizing an investment project in Vietnam. This requires detailed documentation and liaison with national bodies like the Ministry of Planning and Investment (MPI) and local Departments of Planning and Investment (DPI).

The process can be broken down into key steps:

1. Sign MOU and submit IRC application to MPI per Decree 31/2023/NĐ-CP.
2. Obtain Enterprise Registration Certificate (ERC) under Enterprise Law 2020.

Understanding these investment laws is essential to ensure compliance with legal and regulatory requirements during company formation. Timelines and capital requirements vary by sector, so professional guidance is necessary.

Facility Setup: Lease, Build or Buy?

You have options: leasing a ready-built factory in an industrial park is the fastest route. Having a manufacturing presence in Vietnam gives you access to robust industrial infrastructure and significant cost advantages, making it attractive for companies looking to tap into the country’s growing industrial sectors. Building your own facility offers customization but involves navigating complex construction permits and zoning rules. Buying is less common for foreign manufacturers. Industrial parks are often the best choice as they offer streamlined administrative support, reliable utilities and pre-vetted land use rights.

Hiring and Managing Local Teams

Understanding Vietnam’s labor code is key. You’ll need clear employment contracts and you must comply with social insurance and payroll tax obligations. A thoughtful onboarding strategy that bridges cultural gaps between local and expatriate leadership will set your team up for long-term success.

Assembling a dedicated team to manage local operations and ensure quality is critical for sustained business growth.

Financial and Regulatory Landscape

Banking, FX and Capital Movement

Opening a corporate bank account in Vietnam is straightforward once your company is incorporated. You’ll need to manage two types of capital accounts: one for your initial capital contribution and another for operational transactions. Managing foreign exchange (FX) risk is a key consideration for any business dealing in multiple currencies.

Corporate Tax, VAT and Incentives

Vietnam offers attractive tax incentives to attract FDI, especially for high-tech, large-scale or geographically prioritized projects. CIT incentives are a major draw for foreign investors in Vietnam’s manufacturing sector. These can include corporate income tax (CIT) holidays or reductions for several years. Understanding how CIT, Value Added Tax (VAT) and Personal Income Tax (PIT) interact is crucial for accurate financial planning.

Legal Structures and Entry Models

The two most common entry models are establishing a 100% foreign-owned enterprise or entering into a Joint Venture (JV) with a local partner. A 100% FIE gives you full control, while a JV can provide valuable local market knowledge and networks. The choice depends entirely on your strategic goals and risk appetite.

De-risking and Scaling for Long-term Supply Chain Wins

Supply Chain Resilience in Practice

True resilience comes from diversification. Businesses can benefit from diversifying their manufacturing footprint in Vietnam, taking advantage of the country’s growing capabilities and incentives. I’ve seen clients execute a “China + 1” strategy by shifting part of their production to Vietnam, mitigating reliance on a single country. Others are building even more sophisticated networks, using a hybrid model that leverages both Vietnam and another ASEAN country like Thailand to create redundancy and flexibility.

Digitalization and Smart Factory Adoption

Vietnam is pushing hard towards Industry 4.0. The government is actively encouraging investment in automation, data analytics and smart factory technologies through various incentives. Vietnam’s high-tech manufacturing sector is growing rapidly driven by digitalization and smart factories. Tech parks with 5G connectivity are being developed to support this transition, your gateway to sustainable and resilient manufacturing.

Risk Management and Dispute Resolution in Vietnam

While the business environment is improving, disputes can happen. As noted in a 2024 outlook from White & Case, Vietnam is modernizing its legal and regulatory frameworks, including a global minimum tax, to align with international standards. The Vietnam International Arbitration Centre (VIAC) offers a reliable forum for dispute resolution. But the best strategy is always prevention through clear, well-drafted contracts.

For more information on Vietnam’s legal and regulatory frameworks for manufacturing, check out additional resources or expert advice.

Conclusion: Turn Manufacturing Intent into Regional Advantage

Shifting manufacturing to Vietnam transcends cost arbitrage—it’s a strategic move for supply‑chain agility, backed by transparent 2025 legal reforms and robust FDI incentives. Vietnam’s booming FDI, energetic workforce and government commitment to improving the investment climate make it an attractive choice. By following a disciplined roadmap and expert guidance you can build a manufacturing operation that not only withstands global pressures but thrives on them.

Vietnam’s manufacturing sector is booming with manufacturing companies and the industrial sector contributing significantly to the country’s GDP. According to General Statistics Office, export turnover and export value have increased year on year and same period, with strong demand from key markets like US, EU and China. Total investment in industrial production is rising, solidifying Vietnam’s position in Southeast Asia. Quality and sustainability are key to Vietnam’s competitiveness and attractiveness to global partners.

Ready to unlock the growth? Let’s partner for a sustainable future. Talk to experts who can turn your manufacturing intent into regional advantage.

You might also like: The Complete 2025 Guide to Doing Business in Vietnam as a Foreigner: Legal, Tax & Licensing Essentials

Ever wondered how to unlock true expansion across Southeast Asia? Here’s the reality: without world‑class infrastructure - roads, ports, power, and digital networks - your growth plan stalls. Vietnam’s infrastructure build‑out is outpacing many peers—massive Capital Expenditure under the National Master Plan 2030 is driving new highways, ports, power grids, and 5G rollout, though last‑mile logistics and rural utilities still lag.

Vietnam’s infrastructure is now the focus of ongoing development and modernization, with major projects on transport, utilities and sustainable growth. As a consultant who has spent over two decades on the ground helping businesses scale in Vietnam, China and Malaysia, I’ve seen that logistics, power and digital readiness are the foundation of any successful FDI venture.

The government is determined to develop infrastructure and embrace Industry 4.0 is a key driver of Vietnam’s modernization and economic growth. Infrastructure upgrades are necessary for modernization, for current needs and future ambitions. Vietnam’s growing population and rapid urbanization is putting pressure on existing infrastructure, so upgrades and expansion are necessary to meet demand.

These are crucial to ensure economic growth and competitiveness in the region. Right now, Vietnam’s infrastructure evolution is reshaping the entire region’s business landscape, with a clear focus on making Vietnam a regional logistics hub through upgrades and expansion—a game-changer for investors with vision.

Takeaways:

• National Master Plan 2030: Under Decision 237/QĐ‑TTg (2024), Vietnam commits 5% of GDP to modernize highways, railways, power grids (including PDP8), and national 5G coverage—making infrastructure a top‑tier priority.
• PPP Models Unlocked: The PPP Law 2020 and Decree 35/2024/NĐ‑CP detail BOT/BLT/BOO structures, state guarantees, and viability gap funding—inviting global investors into transport and energy projects with clear legal safeguards.
• PDP8’s Green Pivot: Per Decision 1254/QĐ‑TTg (2023), LNG‑to‑power and offshore wind are priority sectors—with feed‑in tariffs and grid‑access rules set to attract ~$30 billion in private capital through 2030.
• Transport Upgrades: The North–South Expressway (1,800 km under Decision 436/QĐ‑TTg), Cai Mep–Thi Vai and Lach Huyen deep‑water ports expansion, plus Cat Lai port upgrades, slash logistics costs by 20% for ASEAN–EU trade lanes.
• Gaps are Opportunities: Shortages in temperature‑controlled warehousing, water/waste utilities in IPs, and urban last‑mile networks represent white spaces—backed by Decree 59/2023/NĐ‑CP incentives for green and smart‑park infrastructure.

Introduction to Vietnam: ASEAN’s Rising Star

Vietnam leads Southeast Asia’s economic transformation—its land borders with China, direct access to the South China Sea, and deep‑water port network make it a natural ASEAN gateway. Sustained FDI inflows (over $22 billion in 2024) under the Investment Law 2020 (amended 2025) underscore its rising appeal. Since 2015, Vietnam has channeled over 4% of annual budget to infrastructure—roads, rail, ports, and digital networks—per Budget Law 2024. These investments cut average freight time by 30%, accelerated urbanization in HCMC & Hanoi, and boosted exports to $380 billion in 2024.

Major cities like Ho Chi Minh City have become hubs of commerce, logistics and innovation, driving the country’s economic growth. The government’s vision is clear: to make Vietnam a global infrastructure hub, supporting high-value manufacturing, efficient trade and sustainable development. This is reflected in the country’s efforts to reduce logistics costs, enhance connectivity and attract big investments from domestic and foreign investors.

Vietnam’s transport infrastructure is being modernized comprehensively, with strategic initiatives and upgrades to support economic growth and regional connectivity. As Vietnam upgrades its infrastructure, it’s setting the stage for long-term growth and solidifying its position as a leading economic power in Southeast Asia.

Vietnam’s Infrastructure Landscape: Past, Present and Future

Vietnam’s infrastructure journey is a story of transformation and ambition. Decades ago, the country’s transport infrastructure—national highways, railways and inland waterways—was a legacy of the French colonial period, underdeveloped and unable to meet the demands of a growing economy. But over the last two decades, the Vietnamese government has invested heavily in infrastructure development to drive economic growth and regional integration.

Now Vietnam’s infrastructure is modernizing fast. Major cities like Ho Chi Minh City and Hanoi are connected by upgraded national highways and expressways, large scale infrastructure projects like the North-South Expressway and port expansions have reduced logistics costs and improved the transport industry. Inland waterways and existing connectivity networks have been developed and strengthened to move goods and people across the country. Long Thanh International Airport is being built to make Vietnam a global infrastructure hub to meet the demand for passenger and cargo transport.

Private sector participation is a key part of Vietnam’s infrastructure development strategy. Through public-private partnerships, the government is mobilizing private investment to deliver critical infrastructure projects, from industrial zones to renewable energy sector initiatives. Artificial intelligence and digital technologies are being integrated into project management and utility infrastructure to create smarter and more sustainable cities.

Looking forward, Vietnam’s infrastructure landscape will evolve even more. The government’s targets are to expand national highways, develop high-speed railways and modernize major ports to support international trade. Renewable energy will play a key role with new projects to diversify the national energy mix and support sustainable development. As industrial zones and deep water ports expand and technology is embedded in infrastructure projects, Vietnam will be able to meet the demands of urbanization and ensure long-term growth.

Vietnam’s National Infrastructure Plan and What It Means for Investors

2030 and 2050: Transport, Power and Digital Targets

Vietnam is not just thinking about tomorrow; it’s planning for the next generation. The government’s national master plan is a clear roadmap for synchronized development, reflecting the rapid advancement of Vietnam’s infrastructure and the importance of ongoing investment to support economic growth and modernization.

According to a 2024 report from The Diplomat, Vietnam’s legislature is set to approve a slate of key infrastructure projects to achieve its economic growth targets. The project pipeline is impressive, featuring a range of investment projects in the national plan, including the full-length North-South Expressway, a future high-speed rail line to upgrade the broader railway network and support modernization, and several LNG-to-power plants.

The plan also includes new international airports to enhance global connectivity and support economic growth, and upgrades to major airports to handle passenger and cargo traffic and reduce congestion. This isn’t just about building roads; it’s about creating economic corridors to connect industrial zones to global markets.

Public-Private Partnership Models and State Guarantees

Vietnam can’t build this future alone. The government has created a clear path for foreign capital through its Public-Private Partnership (PPP) law.As detailed by Dazpro in its analysis of Decree 35, the framework allows for various models like Build-Operate-Transfer (BOT) and offers mechanisms like government guarantees and viability gap funding to de-risk projects for private investors. For you, the investor, this means the door is open to participate in nationally significant projects with a structured legal and financial framework.

Which Provinces Will See Infrastructure Development-Led Growth?

Strategic insight means knowing where the growth will be fastest.

• Southern Logistics Belt: Provinces like Binh Duong, Dong Nai and Long An, which form the industrial heartland around Ho Chi Minh City, will benefit most from port and road upgrades. Road transport plays a key role in connecting these industrial zones, ensuring smooth movement of goods and people. With major ports in this region, logistics and trade will be further boosted, driving economic growth. Joint venture port companies will expand port capacity and attract foreign direct investment, while major shipping lines will enhance regional trade and strengthen Vietnam’s integration with global supply chains.
• Northern Corridors: Hanoi to Haiphong to Quang Ninh is a manufacturing powerhouse, especially for electronics.
• Central High-Potential Zones: Watch Da Nang and its neighbors. They are developing fast as tech, tourism and high-value manufacturing hubs, backed by new infrastructure links.

On-the-Ground Progress: Major Projects by Sector

Transport Infrastructure: Ports, Roads and High-Speed Rail

Vietnam is moving, driven by the modernization of Vietnam’s transport infrastructure and transportation infrastructure. The Cai Mep-Thi Vai deep-water port complex can now accommodate the world’s largest container ships, making it a real alternative to regional transshipment hubs. Inland waterways, with Vietnam’s extensive network of rivers and canals, are also being developed as a key part of freight and passenger transport, supporting the country’s logistics strategy.

The North-South Expressway is being built in sections, already reducing travel time between industrial zones. These highway projects are a key part of Vietnam’s efforts to modernize its road network, boost regional connectivity and support trade integration. The national high-speed rail is a longer-term vision, but urban metro lines in Hanoi and Ho Chi Minh City are slowly becoming a reality to ease urban congestion.

Hanoi’s first metro line, the Cat Linh-Ha Dong line, has been operational since 2021, a major milestone in the city’s urban transit development. Both Hanoi and Ho Chi Minh City have plans for 8 metro lines each to modernize public transportation and reduce traffic congestion in major cities. Besides metro development, Tan Son Nhat, the main international airport in Ho Chi Minh City, continues to play a vital role in Vietnam’s aviation growth and national transportation network.

However, delays and slow progress in some metro projects have been attributed to management board inefficiency, highlighting the need for better project management and investment.

Energy Infrastructure: LNG, Renewables and Grid Expansion

Energy is changing. As reported by the Associated Press, Vietnam’s Power Development Plan 8 (PDP8) is a big shift away from coal towards cleaner energy sources. The plan calls for massive investment in domestic gas and LNG import terminals, and a big push into offshore wind and solar power. Renewable energy is becoming more important in Vietnam’s infrastructure strategy, supporting the country’s energy transition and sustainable development goals. While grid stability is a challenge, it’s also an investment opportunity in grid modernization and energy storage solutions.

Digital Infrastructure: 5G, Data Centers and Smart Parks

The foundation of a modern economy is digital. Vietnam’s National Digital Transformation Strategy is driving investment in 5G networks, fiber optic cables and world-class data centers. This digital backbone is enabling the rise of “smart parks” – industrial zones with integrated digital services that offer manufacturers a competitive edge in efficiency and data management.

Where the Infrastructure Gaps Create Investment Opportunity

A true strategist sees opportunity where others see problems. Vietnam’s infrastructure gaps are your invitation to invest in high-demand solutions.

• Urban Congestion and Cold Chain Shortfalls: HCMC and Hanoi are growing fast and their logistics networks are strained. There is a critical shortage of modern cold storage facilities, a major bottleneck for food processing and pharmaceutical industries. Investing in cold chain logistics is a game-changer. Improvements in utilities access, such as electricity and water, have been notable over the same period (2017-2020), though disparities remain between urban and rural areas.
• Industrial Park Utilities and ESG Integration: Many existing industrial parks need infrastructure upgrades in water treatment, waste management and reliable power. This creates a huge opportunity for companies specializing in green infrastructure and sustainable utilities to meet the rising ESG demands from multinational tenants.Investment in utility infrastructure is essential to support the utilities sector which plays a key role in Vietnam’s economic growth. State owned enterprises, such as Vietnam Electricity Company (EVN), are heavily involved in providing essential utilities and managing operational responsibilities within this sector.
• Talent and Human Infrastructure: Don’t forget the human element. There is a need for better “soft infrastructure” – vocational training centers, digital onboarding platforms and scalable HR solutions – to ensure a ready and skilled workforce can power these new factories and logistics hubs.

Business and Investment Climate: FDI, Regulatory Landscape and Market Entry

Vietnam’s business and investment climate has made it the top destination for foreign direct investment in Southeast Asia. The government’s commitment to infrastructure development and economic modernization is matched by a regulatory environment that encourages private sector investment and foreign participation. Major cities like Ho Chi Minh City and Hanoi are the economic engines, offering plenty of opportunities for investors in sectors from manufacturing and logistics to technology and tourism.

The regulatory landscape in Vietnam is designed to facilitate market entry, with streamlined procedures for setting up businesses and a range of incentives for foreign investors. Special economic zones and industrial parks provide attractive locations for investment, supported by robust infrastructure and access to major ports. While the process is generally smooth, foreign investors should be prepared to navigate some bureaucratic complexities and comply with local regulations.

Market entry options are flexible, allowing foreign investors to set up wholly foreign-owned enterprises or to form joint ventures with local partners. Public-private partnerships have become a key mechanism for private sector participation in infrastructure development, enabling investors to participate in large-scale projects with government support. The development of major ports, including the deep water port at Cai Mep, has significantly improved Vietnam’s logistics capabilities, reducing trade barriers and supporting the efficient movement of goods to and from global markets.

Private sector investment now accounts for a significant portion of Vietnam’s economic growth, reflecting the government’s strategy to tap into the expertise and capital of private and foreign investors. The ongoing expansion of infrastructure, especially in major cities and logistics corridors, creates new opportunities for growth. With a favorable investment climate, a proactive government and a rapidly developing infrastructure network, Vietnam is the prime location for businesses looking to expand in Southeast Asia.

Infrastructure-Driven ESG and Impact Investment in Vietnam

ESG Mandates in Infrastructure Finance

Sustainability is no longer a buzzword; it’s a requirement. Major development finance institutions like IFC and ADB are embedding strict ESG frameworks into their funding for Vietnamese infrastructure projects. PDP8 itself has sustainability targets. For investors, this means demonstrating strong ESG credentials is not just good practice; it’s essential for financing and social license.

Resilient Infrastructure for Climate Adaptation

With its long coastline, Vietnam is on the front lines of climate change. This creates an urgent need and a massive investment opportunity for climate-resilient infrastructure. Projects focused on smart drainage systems to combat urban flooding, coastal protection and energy-efficient building design are in high demand.

Impact Measurement and ROI for Long-Term Infrastructure Projects

Investing in infrastructure is a long-term play. Success requires sophisticated financial modeling that accounts for not just the direct IRR but also the powerful multiplier effects: job creation, regional economic development and the attraction of further FDI. This is how you build a case for impact and return.

How to Navigate Vietnam’s Public-Private Project Landscape

Pre-Investment Feasibility and Regulatory Requirements

Entering an infrastructure project requires a risk-proof strategy. The pre-investment phase is critical and involves land clearance approvals, comprehensive Environmental Impact Assessments (EIAs) and securing the right licenses. You’ll need to choose the right PPP structure like BOT or Build-Operate-Own (BOO) that aligns with your financial model and risk tolerance.

[Infographic: Public-Private Investment Lifecycle in Vietnam (PPP Model)]

Financing Structures and Local Capital Markets

Financing these large-scale projects often involves a blend of international and local capital. Understanding how to work with Vietnamese banks, development finance institutions and potentially the local bond market is key. A solid strategy for currency hedging and ensuring clear pathways for cash repatriation is non-negotiable.

Case Studies: What Success Looks Like

We’ve seen success firsthand. The PPP model was used to develop world-class container terminals at Cai Mep-Thi Vai. Major international investors are now pouring billions into LNG-to-power projects in provinces like Bac Lieu. The ongoing development and expansion of Noi Bai International Airport further demonstrates Vietnam’s commitment to modernizing its airport facilities to meet growing passenger and cargo demands.

Leading industrial developers are rolling out networks of smart parks in Binh Duong, setting a new standard for manufacturing excellence. Vietnam is following the infrastructure-driven growth model seen in high-income nations like South Korea, which has successfully developed its transportation infrastructure through similar strategies.

Conclusion and Future Outlook: Build More Than Roads—Build ASEAN Access Through Vietnam

Vietnam’s infrastructure story is far from over—it’s entering a new era of innovation, integration and opportunity. The government’s commitment to infrastructure investment and sustainable development will continue to drive growth and competitiveness. As public-private partnerships mature and private sector participation deepens, Vietnam will deliver even more ambitious infrastructure projects connecting major cities, industrial zones and global markets.

Looking ahead, the expansion of transport infrastructure, smart utility systems and integration of technologies like AI will further reduce logistics costs and support higher growth. For investors and businesses, Vietnam’s infrastructure is not just about accessing one market—it’s about building a bridge to the entire ASEAN region and beyond. By investing in Vietnam’s infrastructure, you’re not just building roads or ports—you’re building the foundation for long-term success in Southeast Asia’s fastest growing economy.

Conclusion: Build More Than Roads—Build ASEAN Access Through Vietnam

Infrastructure is Vietnam’s most powerful competitive advantage in the race for FDI in Southeast Asia. The government’s commitment is clear, the framework is in place and the opportunities are huge. For global companies looking to de-risk their supply chains and tap into the region’s growth, investing in or leveraging Vietnam’s new infrastructure is the ultimate competitive edge. This is how you build your gateway to the entire ASEAN market.

Work with us to turn challenges into wins. We provide the investor intelligence and on-the-ground navigation to make your infrastructure-led investment succeed. Because when it comes to your next big break, there’s only one way forward.

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Today’s cross‑border trade is more than logistics—it’s a minefield of customs penalties, tariff policies, and origin rules. With twenty years advising FDI in Vietnam, China, and Malaysia, I’ve watched missteps—mis‑classifications, missing certificates—shatter profit margins overnight.

This is where strategic trade consulting becomes your most valuable asset—consultants help your company navigate complex regulations, mitigate risk, prevent costly errors, unlock overlooked incentives and turn challenges into opportunities.

By using international trade consulting, your company will get enhanced compliance, improved efficiency and effective risk mitigation, smoother global operations and more success.

Trade consultants offer a full range of services to address every aspect of international trade and compliance.

Key Takeaways:

• Strategic vs. Transactional: Customs brokers handle filings while trade consultants craft FTA‑driven supply‑chain strategies. Ensure compliance under Customs Law 2014 (amended 2024), and unlock new market access.
• FTA Advantages: CPTPP, RCEP, EVFTA can slash duties to 0%—but only with flawless Rules of Origin documentation (COO forms under Decree 111/2024/NĐ‑CP). SMEs often forfeit savings by misapplying origin criteria.
• HS Code Traps: An incorrect 6‑digit HS code can trigger customs re‑audits, 20% penalty surcharges, and delayed release under Circular 39/2024/TT‑BTC—crippling tight lead times.
• Agile Trade Flows: In light of US‑China tariffs and EU carbon border taxes, diversify via ASEAN hubs. Our modeling uses tariff‑engineering under WTO rules to optimize origin and minimize total landed cost.
• Compliance as Investment: Meeting Customs Law and Anti‑Dumping Regulations head‑on prevents 3–10% ad‑valorem duties and legal hold‑ups—so you can reinvest those savings into growth, not penalties.
• Stay Focused on Compliance and Strategy: In complex international trade environments, staying focused on ensuring compliance and developing tailored strategies is key to navigating changing regulations and operational efficiency.

Global Trade Operations

In the fast-paced world of international trade, global trade operations are the backbone of business growth. These operations cover every step involved in moving goods and services across borders, from customs procedures to complex supply chains. For companies to thrive in the global market, understanding global trade operations is not just an advantage; it’s a necessity.

International trade consultants bring expertise to the table to help businesses interpret and comply with ever-changing regulations. Their guidance ensures each stage of the trade process, from documentation to delivery, is handled with precision and efficiency. By working with trade professionals, companies can streamline operations, reduce costs and proactively address potential risks before they escalate.

In today’s interconnected economy, the ability to adapt to new regulations, optimize customs procedures and maintain compliance is what sets top companies apart. Whether you’re an experienced exporter or just entering the world of global trade, leveraging the insights of international trade consultants can transform your business operations, open new markets and sustainable growth.

What International Trade Consulting Really Solves

Unseen Compliance Gaps That Sink Shipments

The biggest risks in international trade are the ones you don’t see coming.

• Harmonized System (HS) Mis‑Codes: A single 6‑digit HS error under Decree 39/2024/TT‑BTC can trigger customs audits stretching back 5 years, with retroactive duties plus 25% penalty interest—often exceeding initial savings.
•  FTA Origin Traps: Under Annex I, CPTPP and Annex 2 of EVFTA, even 1% non‑originating inputs void zero‑duty status—forcing full tariff rates and nullifying your duty‑drawback claims.
• Paperwork Pitfalls: Skipping an e‑CO submission via the ASEAN Single Window or mis‑filing an import declaration under Clause 5, Decree 08/2024 immobilizes containers—and invites demurrage fees of $100/day or more.

Compliance in import and export processes is key to avoid these hidden risks and smooth international trade operations.

Services Every Trade Consultant Should Offer

A true trade consultant provides strategic insight and not just transactional support.

• FTA Opportunity Analysis: We analyze your product components and supply chain to determine which FTAs you qualify for and how to structure your operations to maximize tariff savings.
• Country-Specific Regulatory Intelligence: We provide up-to-the-minute guidance on the specific rules of your target markets, from HS codes to regulations on dual-use goods, with industry and industries expertise to address sector-specific requirements.
• Customs Broker Coordination: We don’t just replace your broker; we manage them, so the strategy we build is executed flawlessly on the ground.

Who Needs It Most: Red Flags by Business Type

You may need a trade consultant if you are an organization looking to navigate complex trade regulations or optimize internal processes for international expansion.

• A mid-sized exporter expanding into new regions for the first time.
• A manufacturer shifting your supply chain due to geopolitical pressures.
• A direct-to-consumer (D2C) brand using e-commerce to sell to customers worldwide.
• An organization or business looking to structure the right internal organization to facilitate effective communication and problem-solving during global trade projects.

Cross-Border Strategy for ASEAN-Origin Traders

Common ASEAN Export Scenarios and How to Optimize Them

As an ASEAN-native company, we see these scenarios every day. For example, a manufacturer in Vietnam can use the EVFTA for duty-free access to Europe, the RCEP for streamlined trade with Asia-Pacific countries and the CPTPP for markets in the Americas. As a 2025 analysis from Trade Economics points out, the implementation of these major trade blocs is the new normal. Knowing which agreement is best for your product is a game-changer.

Our consultants help clients identify the most favorable trade agreements and export scenarios, so you can be more competitive and cost-effective in the evolving global trade landscape.

Building a Regional Trade Strategy Beyond Vietnam

A risk-free supply chain is a diversified one. We help you model your trade flows, analyzing when it makes sense to consolidate production in one hub versus diversifying across multiple ASEAN countries like Thailand and Malaysia. A forward-looking report from Oxford Economics highlights how ASEAN’s response to global tariff policies is creating new opportunities for agile businesses. Diversifying across multiple countries with smart transfer pricing gives you resilience and a competitive edge.

Digital Trade Tools and Customs Automation

The future of trade is digital. The ASEAN Single Window allows for electronic exchange of trade documents across member states, while digital Certificates of Origin (e-C/Os) are becoming the norm. We help you integrate these tools into your ERP system, using technology to speed and accuracy.

Supply Chain Optimization for Global Traders

For global traders, a well-optimized supply chain is key to staying competitive and resilient in the face of changing trade dynamics. Supply chain optimization goes beyond logistics – it’s about creating a seamless flow of goods, information and capital that supports your business goals while navigating the complexities of international trade.

International trade consultants play a crucial role in this process. By conducting deep dive assessments of your supply chains, they identify bottlenecks, inefficiencies and compliance gaps that could expose your business to unnecessary costs or regulatory risks. Using advanced data analytics and their expertise in customs management, consultants develop customized strategies to streamline operations, reduce costs and ensure compliance with regulatory requirements.

Effective supply chain optimization also prepares businesses for government audits and maintains strong relationships with customs brokers and freight forwarders. By addressing trade barriers and regulatory compliance proactively, companies can mitigate risks, avoid penalties and enhance their reputation in the global market. Ultimately, a strategic approach to supply chain management enables businesses to adapt quickly, capitalize on new opportunities and achieve long-term success in international trade.

Tactical Services for Small and Mid-Sized Global Traders

FTA Utilization and Documentation Audits

Are you leaving money on the table? We conduct thorough audits of your past shipments to identify missed FTA savings and help you claim them. We also train your team on self-certification procedures under agreements like the CPTPP, so you can certify yourself.

Importer of Record (IOR) and Compliance Risk Sharing

When entering a new market, using an Importer of Record service seems like an easy solution. An IOR takes on the legal responsibility for your import. But this model comes with its own risks. We help you determine when to use an IOR partner and how to structure the agreement to protect your interests.

How SMEs Can Leverage Trade Zones and Duty Deferral

Governments offer powerful tools to boost exports.

• Free Trade Zones: Setting up in a zone in Vietnam or Thailand allows you to import materials duty-free for manufacturing.
• Duty Drawback: If you import a component and re-export it in a finished product, you can often claim a refund of the initial import duty.
• Bonded Warehouses: These allow you to store imported goods without paying duty until they are sold into the domestic market, improving cash flow.

Country	Zone Type	Name Examples	Duty Deferral	Import VAT Exemption	Re-export Flexibility	Key Notes
🇻🇳 Vietnam	Export Processing Zone (EPZ)	Tan Thuan, Linh Trung, Saigon Hi-Tech Park	✅ Yes	✅ Yes	✅ High	EPZs must export 100% of output. Domestic sales require customs clearance & tax.
🇹🇭 Thailand	Free Zone	Amata City, Eastern Seaboard	✅ Yes	✅ Yes	✅ High	Free Zones are customs-bonded; 100% foreign ownership allowed.
🇸🇬 Singapore	Free Trade Zone (FTZ)	Jurong Port FTZ, Airport Logistics Park	✅ Yes	✅ Yes	✅ High	Goods can be stored/transshipped duty-free indefinitely.
🇵🇭 Philippines	Ecozones (PEZA)	Clark, Subic Bay, Cebu IT Park	✅ Yes	✅ Yes	✅ High	Enterprises enjoy income tax holidays & special PEZA licensing.
🇲🇾 Malaysia	Free Industrial Zone (FIZ)	Bayan Lepas, Port Klang	✅ Yes	✅ Yes	✅ High	Must be export-focused; machinery can be imported duty-free.
🇮🇩 Indonesia	Bonded Zone	Batamindo, Bintan Industrial Estate	✅ Yes	✅ Yes	✅ High	Enhanced customs procedures & simplified VAT refunds.

Due Diligence in Trade Consulting: Protecting Your Business

In international trade, due diligence is your first line of defense against costly mistakes and unforeseen risks. Thorough due diligence – especially restricted party screening and compliance checks – ensures your business partners, transactions and supply chains meet all regulatory requirements and avoid entanglement with trade sanctions.

International trade consultants leverage their experience to guide businesses through comprehensive due diligence processes. This includes party screening to identify restricted or sanctioned entities, assessing the regulatory landscape in target markets and evaluating trade barriers. By providing expert guidance and actionable insight, consultants help companies make informed decisions, reduce exposure to risk and maintain compliance across all global trade operations.

For businesses looking to expand into new markets, due diligence is key to understanding local regulations and developing strategies to overcome obstacles. With the support of trade professionals, companies can pursue growth knowing they have the expertise and resources to navigate the complexities of global trade and protect their operations from regulatory pitfalls.

Making Trade Consulting Accessible to Growth-Stage Enterprises

What Sets Consultants Apart from Compliance Staff

Your internal staff is essential for day-to-day operations but their focus is often reactive. A consultant’s job is to be proactive and strategic. We don’t just fill out forms; we analyze trade policy, negotiate with authorities when needed and provide foresight to keep you ahead of regulatory changes.

Cost Structure, Scope and Results Benchmarks

Consulting shouldn’t be a black box. We offer clear pricing models whether it’s a per-project fee for an FTA analysis, a monthly retainer for ongoing support or an outcome-based model tied to the savings we generate for you. Success is measured by lower costs, faster customs clearance and zero penalties.

How to Choose the Right International Trade Partner

Look for a partner with cross-border experience. Check their credentials and most importantly ask for references from businesses they’ve helped in your target markets. Be wary of any firm that uses static templates or can’t provide real-time updates on changing regulations.

Government Audits and Penalties: What Every Exporter Should Know

Government audits are a part of international trade and the stakes are high for exporters. Non-compliance with export controls, customs procedures or other regulations can result in heavy penalties, financial loss and reputational damage. Understanding these risks and how to mitigate them is crucial for any business involved in global trade.

International trade consultants help companies interpret complex regulations, implement robust compliance programs and prepare for government audits. Their expertise covers all aspects of export compliance from customs management and tariff classification to trade sanctions and ensuring all documentation is in order. By developing tailored strategies and conducting regular assessments, consultants help businesses identify vulnerabilities, optimize their supply chain and reduce the risk of penalties.

Staying ahead of regulatory changes and being proactive in compliance not only protects your business but also gives you a competitive edge in the global market. With the right expertise and guidance, exporters can turn compliance into a competitive advantage, ensuring smooth operations and sustainable growth in international trade.

Trade Consulting for Creators, Coaches and Solo Exporters

Digital-First Businesses Going Global

The digital economy is global by default. If you’re selling on Amazon Global or Etsy from Vietnam, you are an exporter. We help you navigate product restrictions, customs declarations and foreign exchange laws when you get paid.

Freelancers and Consultants with Global Clients

If you are a consultant providing services to a client in Europe, you are exporting a service. This can trigger withholding tax obligations in your client’s country and VAT considerations at home. A risk-proof strategy involves using Double Taxation Agreements to ensure you’re not taxed twice on the same income. This proactive planning is crucial as global economies grapple with tariff risks that can indirectly impact service-based businesses, as seen in a July 2025 Reuters report on Asian factory conditions.

Conclusion: Reduce Risk, Unlock Trade Incentives and Expand with Confidence

In today’s market, strategic international trade consulting isn’t an expense – it’s an investment. It allows you to move fast and with confidence, turning regulatory hurdles into your competitive advantage. By combining ASEAN-native expertise with global compliance knowledge, we help you expand without penalties. Get started now. Book a trade audit.

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Want to scale in Southeast Asia’s fastest‑growing market? Look to Vietnam. With two decades guiding FDI under the Law on Investment 2020 (amended 2025), I’ve seen booming growth—but also legal traps. Winning here means matching your strategy to Vietnam’s multi‑tiered corporate, tax, and licensing framework.

Key Takeaways:

• Structure Aligns with Strategy: Select your entity under Law on Investment 2020 (amended 2025)—100% FIE (LLC/JSC), JV, or Rep Office—based on market goals, ownership caps, and permitted activities.
• FDI Growth vs. Geo‑Risks: With $23 billion FDI in 2024, Vietnam excels in manufacturing. Yet stay nimble—US Section 301 tariffs or EU CBAM may shift supply‑chain economics overnight.
• The Two-Certificate System is Key: Market entry hinges on getting two essential documents: the Investment Registration Certificate (IRC) and the Enterprise Registration Certificate (ERC).
• Compliance is a Daily Discipline: Master Vietnam’s tax system—from Corporate Income Tax to the unique Foreign Contractor Tax—and its strict e-invoicing and reporting rules is non-negotiable.
• Talent is Abundant but Localization is Critical: Vietnam’s young, educated workforce is a major asset but success requires understanding local labor laws, recruitment channels and cultural business norms.

Vietnam Introduction

Vietnam ranks among ASEAN’s FDI frontrunners—$23 billion in 2024—thanks to 6.8% GDP growth (Q2 2025) and nearly 100 million people, over 70% of whom are working‑age. This young, skilled labor force fuels innovation and robust domestic consumption underpins long‑term market potential.

Recent reforms—Decree 31/2023/NĐ‑CP (IRC/ERC in 10 days), e‑Registration enhancements under Decree 45/2024—have slashed setup time and costs. Both MNCs and SMEs cite Vietnam’s streamlined corporate process and generous FDI incentives (10% CIT for high‑tech) as key draws.

Whether you’re looking to start a new venture or expand your global footprint, Vietnam’s combination of government support, skilled workforce and rapidly developing economy makes it an attractive destination for investors and companies worldwide.

Vietnam Business Climate 2025

Key Indicators for Foreign Businesses

Vietnam is a standout performer in the region. Its consistent GDP growth, stable political environment and expanding network of free trade agreements create a conducive investment climate. The hotspots attracting the most attention are export-oriented manufacturing (electronics, textiles, furniture), renewable energy, technology and consumer goods driven by a rapidly growing middle class. The workforce is not just cost-effective but also young, literate and increasingly skilled.

Rising living standards and a growing middle class are also driving demand for health services and health-related products.

Where Vietnam Ranks—and Where It Really Stands Today

While formal “Ease of Doing Business” rankings provide a snapshot, they don’t tell the whole story. The on-the-ground reality is a dynamic environment of rapid progress and persistent challenges. Infrastructure is improving dramatically with new highways and deep-water ports reducing logistics times. But foreign businesses often face a learning curve with administrative procedures and the nuances of the legal framework.

Recent changes in law have impacted business regulations, procedures and sector restrictions for foreign investors so it’s essential to stay up-to-date with legislative developments.

A key factor for 2025 is the global trade environment. As an April 2025 article from Business Insider notes, Vietnam has expressed its readiness to negotiate with the US over potential import tariff hikes, which is a positive sign for investors who need policy stability. This pragmatic approach is good for investors.

Business Environment

Vietnam’s business environment is a mix of tradition and modernity, shaped by centuries of commerce and recent global integration. The government has actively supported foreign investment through the creation of industrial zones and multiple free trade agreements, making it easier for foreign companies to operate and grow. These efforts have positioned Vietnam as a key player in international trade and investment.

But doing business in Vietnam is not without its challenges. Complex regulations and bureaucratic procedures can be obstacles for foreign investors, requiring careful navigation and local expertise. Despite these hurdles, many foreign companies have succeeded by leveraging Vietnam’s strategic location, skilled workforce and increasingly business-friendly environment.

The country’s commitment to economic development and openness to foreign investment continues to attract companies from around the world, making Vietnam an attractive destination for those who are willing to engage with its evolving regulatory landscape.

Step-by-Step Incorporation and Entity Setup

Legal Structures for Foreign Investors

Choosing the right entry vehicle is a strategic decision, not an administrative one.

• Limited Liability Company (LLC): The most popular choice, allows 100% foreign ownership in most sectors. You have full control over your operations.
• Joint Venture (JV): A partnership with a Vietnamese company. This can be mandatory in some conditional sectors and provides valuable local market knowledge but means sharing control.
• Representative Office (Rep Office): A limited-function entity. It can be used for market research and promotion but cannot engage in direct revenue-generating activities.

Entity	Vehicle	Ideal For	Key Regulatory Steps	Land/Property Access	FTA/Tax Advantages
Foreign-Invested Enterprise (FIE)	LLC or JSC (100% foreign-owned)	Manufacturers, exporters, tech companies	1. IRC via Decree 31/20232. ERC under Enterprise Law 2020 3. Tax code & seal registration 4. Bank account	Lease IP/EZ land under Decree 43/2014	✅ 0% CIT for hi‑tech (10–50% capex) & full FTA access
Joint Venture (JV)	LLC or JSC (with local partner)	Market entry with local know-how	1. IRC + JV approval2. ERC3. JV charter & shareholder agreement notarization 4. Tax & bank setup	Partner’s LUR or new IP/EZ lease	✅ Shared FTA benefits; plan ownership for origin compliance
Representative Office (RO)	Non-commercial presence	Market research, liaison, branding	1. Apply RO license to MOLISA2. Register parent docs + staff3. e‑Tax registration	N/A	❌ Ineligible
Branch Office	Branch of foreign parent	Banks, law firms, select services	1. MOF or sector‑ministry branch approval2. ERC if applicable 3. Tax code 4. Seal & account	Limited; sector‑specific approvals	✅ May leverage FTAs if covered by parent FIE
Overseas Vietnamese (Viet Kieu)	Individual or Entity via LUR	Real estate, land investment	1. Proof of nationality2. LUR registration under 2024 Land Law3. Project approval for developers	Direct LUR up to 50 years under Land Law 2024	✅ Full domestic tax rights; FTA perks via associated FIE structure

Licenses, Tax Codes and Corporate Registration

The incorporation process is a two-stage rocket. First, you need to get an Investment Registration Certificate (IRC), which involves an approval process by the relevant government authority for the investment project itself. Some sectors or projects may require additional government approval or be subject to sector-specific restrictions before the IRC is granted.

Second, you get an Enterprise Registration Certificate (ERC), which officially establishes your company. After that, you will be issued a tax ID, register a company seal and open a corporate bank account. Delays are common if there are issues with land use rights approvals or if your sector requires clearance from a specific ministry.

Capital Requirements and Financing Models

While many sectors have no minimum capital requirement, you must propose a charter capital amount that is sufficient to cover your initial operational expenses. This charter capital must be paid within 90 days of receiving your ERC. Registering foreign loans with the State Bank of Vietnam is a separate but equally important process for financing your growth.

Benefits of Free Trade Agreements

Vietnam’s extensive network of free trade agreements (FTAs) has become a key selling point for foreign investors and companies. By partnering with major economies such as the EU, Japan and South Korea, Vietnam has secured reduced tariffs, streamlined customs procedures and expanded market access for businesses operating in the country. These FTAs not only lower the cost of doing business but also foster deeper economic integration and cooperation with countries around the world.

For foreign companies, the benefits are real: better access to global supply chains, increased competitiveness and the ability to tap into new markets with fewer barriers. The Vietnamese government has complemented these agreements with targeted incentives for investment in certain sectors and regions, further encouraging foreign investment and supporting the development of key industries. As a result, Vietnam has become a key hub for international trade, offering foreign investors a platform to grow and succeed in the global market.

Taxes, Compliance and Reporting

Vietnam’s Business Tax System for Foreigners

A snapshot of the key taxes includes:

• Corporate Income Tax (CIT): 20%.
• Value-Added Tax (VAT): 10% on most goods and services, 8% on certain categories to stimulate the economy.
• Personal Income Tax (PIT): 5% to 35% for resident employees.
• Foreign Contractor Tax (FCT): A unique tax on payments made to offshore suppliers for services rendered to a Vietnamese entity.

Common Compliance Headaches for New Entrants

Navigating the tax system requires precision. Common issues include understanding the strict rules for e-invoicing, getting input VAT credits approved and correctly classifying payments to avoid FCT traps. Payroll and social insurance compliance for local and expatriate staff is another area that needs to be managed carefully.

Audit Risk and Best Practices

Tax authorities are getting smarter. Audits often focus on transfer pricing—the valuation of transactions between related entities.As The Shiv’s analysis of Vietnam’s economy points out, the country’s integration into global supply chains makes these cross-border transactions a key focus. Keeping thorough documentation to prove your intercompany payments are at “arm’s length” is your best defense.

Recent improvements in governance and regulatory oversight in Vietnam have reduced audit risks for foreign businesses.

Localization, Employment and Cultural Fit

Hiring in Vietnam: What Foreign Firms Need to Know

Your team is your greatest asset. You will need to navigate the rules for hiring local staff versus expatriates, which require work permits and temporary residence cards. Using a mix of online job portals and local recruitment agencies is a good strategy. Standard probation periods and severance rules are defined by the labor code and must be followed.

Cultural Intelligence and Business Etiquette

Understanding local culture is a key differentiator. Decision-making can be more hierarchical and building personal relationships is often a prerequisite for doing business. There are also subtle but important cultural differences between the business environments in Hanoi (the capital), Da Nang (the central hub) and Ho Chi Minh City (the southern commercial engine).

How to Align Strategy with Vietnam’s Sectoral Strengths

Industries that will Attract the Most FDI in 2025

FDI is pouring into specific high-potential sectors.

• Manufacturing: Electronics remains a giant. As Reuters reported in an April 2025 piece, giants like Samsung, which produces half of its smartphones in Vietnam, have a lot at stake in the country’s trade relationships, anchoring a massive electronics ecosystem. Importing equipment, including machinery and electronic components, is crucial for supporting production and export activities in Vietnam's manufacturing sector.
• Clean Energy & Infrastructure: Investment in wind, solar and LNG is accelerating under new government plans.
• Digital Economy: E-commerce, logistics, fintech and online education are booming. Digital transformation is driving innovation and productivity in these sectors, supporting Vietnam’s broader economic modernization goals.
• SectorFDI OpennessLicensing ComplexityCommon RestrictionsNotes & IncentivesManufacturing (Non-sensitive)✅ High🟢 EasyMinimal — depends on product typeIndustrial parks simplify setup; tax holidays in key zonesRenewable Energy (Solar, Wind)✅ High🟡 ModerateLand access; PPA approval with EVNPreferential policies under PDP8; ESG-backed incentivesLogistics & Warehousing✅ High🟢 EasyMust be in designated logistics zonesEncouraged sector in most provincesE-commerce & Tech✅ High🟡 ModerateData localization (for platforms); cybersecurity rulesRapid approvals in IT parks; tax breaks for innovationReal Estate Development🟡 Limited🔴 ComplexLand ownership limits; foreign quota in housingUse BT or JV model; easier via FIE with local partnerHealthcare & Pharmaceuticals🟡 Limited🔴 ComplexLicensing for clinics/hospitals is strictJV with local entity often required; high demandEducation (Intl Schools)✅ High🟡 ModerateCurriculum and language rulesIncentives in new economic zones; preferred sectorFinancial Services🟡 Restricted🔴 ComplexCentral bank & MOF approvals requiredBranch or JV model; strict capital and risk rules

Government Incentives and Tax Holidays

To attract FDI into these key sectors, the government offers big incentives. Businesses operating in industrial parks, economic zones or high-tech sectors can get significant tax holidays (e.g. years of 0% CIT) and land rent reductions.

Access to green finance and infrastructure financing is getting more important for businesses to benefit from government incentives.

End-to-End Market Entry Roadmap

Pre-Market Due Diligence and Feasibility

Go big or go home starts with your homework. Before committing capital, you must do your due diligence, including site visits, market validation studies and a clear-eyed view of the regulatory landscape for your industry.

Post-Incorporation Scaling and Growth

Once incorporated, the real work begins. This includes building your team, setting up your local sales and marketing channels and ensuring your operations comply with all data protection and customer service regulations.

Also, the rise of digital banking is transforming financial services and supporting Vietnam’s digital economy.

Risk Management for Foreign Firms

A forward-thinking strategy includes robust risk management. This means planning for currency fluctuations, understanding contract enforcement mechanisms and strict anti-corruption protocols. It also means staying informed on geopolitical risks that impact your business.

Conclusion: Your ASEAN Entry Point Starts with Vietnam

Vietnam has a huge growth trajectory but realizing that potential requires a strategic and well-executed entry. The opportunities are massive for those who are prepared. By aligning your corporate structure, tax planning, talent strategy and risk management from day one, you can build a robust and profitable operation. Viettonkin helps global firms achieve this alignment, turning market entry challenges into a launchpad for regional scale.

Let’s make Vietnam your next win. The only way is forward.

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Traditional IPOs often take 12–18 months of roadshows and underwriter negotiations—so many growth companies turn to SPACs for speed. But “fast” doesn’t mean “easy.” With two decades guiding ASEAN issuers under SEC rules and EU Prospectus Regulation, I’ve seen that rigorous due diligence and robust governance are the real keys to SPAC success.

Key Takeaways:

• SPACs Return with Rigor: Post‑2021 pullback, SPAC sponsors now target quality assets, with SEC’s enhanced S‑1 scrutiny on forecasts and sponsor conflicts—so only well‑prepared issuers will clear the bar.
• Speed vs. Pricing Risk: SPACs close in 3–6 months post‑merger agreement—versus 12–18 months for an IPO—but you lock in valuation upfront in an S‑4 proxy filing, trading off market price discovery for deal certainty.
• Heightened SEC Scrutiny: De‑SPAC mergers now demand detailed forward‑looking financials in Form S‑4 and robust conflict‑of‑interest disclosures. Audit readiness under PCAOB standards from Day 1 is non‑negotiable to avoid deal delays.
• Transformation, Not Transaction: De‑SPAC readiness means adopting SOX‑style controls, installing an independent board (audit, compensation committees), and aligning accounting to US GAAP/IFRS—all before merger closing.
• Strategic, Not Shortcut: When backed by experienced sponsors and supported by a PIPE (Private Investment in Public Equity), a SPAC can turbocharge capital raises and global profile—provided you navigate the legal, accounting, and investor‑relations demands fully.

Understanding the SPAC Structure and Lifecycle

What Is a SPAC and How It Works

An SPAC (Special Purpose Acquisition Company) is a “blank check” vehicle formed by sponsors—often private‑equity or industry veterans—to raise capital via IPO and hold it in trust under SEC Rule 419, without any initial operations. SPACs have 18–24 months to identify, negotiate, and merge with a target, effectively taking the private company public.

SPAC Deal Timeline from Both Sides

The SPAC lifecycle is a two-act play.

Act I: The SPAC IPO.

• Form SPAC, file Form S‑1 with the SEC.
• Raise capital, list on NYSE/NASDAQ.
• Funds held in trust per Rule 419 until merger.

Act II: The De-SPAC Merger.

• Identify and vet target; conduct full due diligence under PCAOB audit standards.
• File Form S‑4 proxy and Definitive Proxy Statement.
• SPAC shareholders vote; upon approval, merger closes—target replaces SPAC ticker.

Raising Capital through SPAC IPOs

Raising capital through a Special Purpose Acquisition Company (SPAC) IPO has become an increasingly popular option for private companies looking to go public. In this process, a shell company—often referred to as a blank check company—is created by experienced sponsors or industry veterans with the sole purpose of raising capital from investors. The capital is held in trust until the SPAC identifies and acquires a promising private company which then becomes a publicly traded company through the merger.

Unlike the long and uncertain process of a traditional IPO, a SPAC IPO allows private companies to access the public markets and raise capital faster and more efficiently. This is why SPAC IPOs are especially attractive to private equity sponsors and companies in fast moving industries where time and certainty are key.

Investors in SPAC IPOs get to participate in the growth of a private company while also leveraging the expertise of seasoned sponsors who know how to identify high potential acquisition targets. For private companies, the SPAC route offers a unique combination of speed, access to capital and the ability to partner with industry leaders as they become a publicly traded entity.

Role of Sponsors in a SPAC

Sponsors are the engine behind every successful Special Purpose Acquisition Company (SPAC) transaction. Typically these sponsors are industry veterans or private equity experts who bring deep sector knowledge and a strong network to the table. Their role begins with forming the SPAC and raising capital through an initial public offering (IPO) but their involvement goes far beyond the fundraising stage.

Once the SPAC is listed, sponsors use their expertise to find a private company with growth potential. Their interests are aligned with investors as sponsors usually get a significant equity stake in the combined entity post-merger. This alignment encourages sponsors to choose high quality targets and drive value creation for all shareholders.

Beyond the transaction itself, sponsors often provide strategic guidance and support to the management team of the acquired company. Their experience in navigating public markets can be invaluable in helping the newly public company adapt to its new environment and meet public investor expectations. In short, the right sponsors can make the difference between a successful SPAC transaction and one that fails, making their expertise and commitment a key consideration for any private company considering this path.

SPAC vs IPO: Which Is Right for You?

Timelines, Costs, and Market Exposure

Choosing between a SPAC and an IPO requires a clear view of the trade-offs. An IPO roadshow is like a public auction for your company’s shares, while a SPAC is more like a private sale negotiation that then becomes public. Market conditions can significantly impact the success and timing of an IPO, as bad economic conditions or market volatility can delay or reduce the effectiveness of the offering, whereas a SPAC listing can sometimes mitigate these risks by locking in valuation before market exposure.

Feature	Traditional IPO	SPAC Listing
Timeline	12–18+ months	3–6 months from merger agreement to close
Valuation	Determined by market during roadshow (price discovery)	Negotiated and fixed upfront with the SPAC sponsor
Market Risk	High – a volatile market can derail the IPO	Lower – valuation is locked in before market exposure
Key Cost	Underwriter fees (typically 5–7%)	Sponsor “promote” (~20% equity dilution)
Control	More control over the process and narrative	Shared control with SPAC sponsors, who become partners
Public Exchange	Shares are listed and traded on a public exchange	Shares are listed and traded on a public exchange

With a SPAC, you get valuation certainty early in the process. This can be a big advantage in volatile markets. Additionally, SPAC deals often have PIPE financing (Private Investment in Public Equity) where institutional investors commit to buying shares at the time of the merger. PIPE financing plays a critical role in the SPAC merger process by providing additional capital to support the transaction and ensure sufficient funding before the merger closes, while also validating your valuation.

Company Type Suitability

A SPAC is not for everyone. It’s best for:

• Mid-to-late stage growth companies with a strong story and proven business model.
• Companies in sectors that are attractive to public market investors, like tech, green energy and healthcare.
• Cross-border companies, especially from ASEAN, looking for visibility and access to capital that a US or European listing provides.

Due Diligence and Regulatory Traps in SPAC Listings

What Regulators Look for in De-SPAC Filings

The regulatory environment for SPACs has become much stricter. The US Securities and Exchange Commission (SEC) now scrutinizes de-SPAC transactions as closely as a traditional IPO. As reported by Reuters in June 2025, while stock exchanges are in talks with the SEC to potentially ease some regulations for public companies, the bar for entry is very high, especially for disclosures in merger filings like the Form S-4. It’s essential to provide all necessary information in the proxy statement and other disclosures to ensure transparency and build investor confidence.

Governance, Forecasts and Litigation Risk

One of the biggest changes is the liability attached to financial forecasts. The safe harbor for forward-looking statements is less certain in SPAC deals, meaning you and your new board can be held accountable for overly optimistic projections. This has led to more shareholder litigation. As legal experts at Scarinci Hollenbeck noted in a 2025 report, the “SPAC comeback” is characterized by higher quality sponsors and more due diligence, so the onus is on the target company to be prepared.

Red Flags That Kill the DealIt can all fall apart quickly. Watch out for:

• Sponsors whose expertise doesn’t align with your industry.
• A small or non-existent PIPE, meaning no institutional confidence.
• Weak internal financial controls that make a public company audit impossible.
• High investor redemption rates where SPAC shareholders opt to get their money back instead of participating in the merger.

US vs Europe via SPAC: What ASEAN Companies Need to Know

NASDAQ and NYSE Listing Paths

For an ASEAN company, listing in the US via a SPAC means becoming a Foreign Private Issuer (FPI). This requires preparing financials that comply with US GAAP or IFRS and undergoing an audit by a firm registered with the Public Company Accounting Oversight Board (PCAOB). You will also become subject to US securities laws, including the Sarbanes-Oxley Act (SOX).

SPAC Pathways for ASEAN Companies

The typical structure involves your ASEAN operating company being acquired by a newly formed holding company in a jurisdiction like the Cayman Islands or Singapore. This holding company then merges with the US listed SPAC. This requires careful tax and legal structuring to be efficient and compliant.

SPAC Readiness: Governance, Forecasting and Audit

Preparing Financials for De-SPAC Merger

This is often the hardest part. You must transition your accounting from local standards (like VAS in Vietnam) to the rigorous standards of US GAAP or IFRS. This process can take 6 months or more and requires expert guidance to avoid restatement risks down the line. As analysis from Colonial Stock Transfer suggests, the current market demands a higher level of preparation from target companies than in the past.

Building a SPAC Ready Governance Team

Your pre-merger board won’t be sufficient. You need to build a public company board with independent directors, an audit committee and a compensation committee. You also need to hire or contract legal counsel and investor relations professionals who are fluent in public market communications.

Maintaining Shareholder Confidence Post Listing

Going public is the starting line, not the finish line. You must have a clear roadmap for investor relations, be prepared for quarterly earnings calls and proactively manage shareholder expectations.## SPAC Growth and Momentum: Market Trends and Insights

The rise of Special Purpose Acquisition Companies (SPACs) has been one of the most significant trends in capital markets in recent years. The SPAC market has exploded with a surge in SPAC IPOs and high profile mergers that has changed how private companies approach going public. According to Harvard Business Review, the number of SPAC IPOs increased by over 500% in 2020 compared to the previous year, proving the growing popularity of this alternative to traditional IPOs.

This momentum is driven by several factors: private companies wanting to access public markets more efficiently, investors looking for new opportunities and experienced sponsors who can identify and acquire good businesses. The flexibility and speed of the SPAC process has made it especially attractive in industries undergoing rapid transformation, such as fintech, clean energy and technology.

As more companies and investors understand the benefits of SPACs, the market will continue to evolve with new structures and strategies emerging to meet the needs of private companies and public market participants. The result is a dynamic ecosystem where SPACs are not a trend but a permanent fixture in the landscape of public company financing.

SPAC Future and Strategic Considerations

Looking ahead, the future for Special Purpose Acquisition Companies (SPACs) looks bright with continued innovation and growth expected in the spac market. As purpose acquisition companies (SPACs) mature, we will see new strategies emerge, such as targeting companies in cutting edge industries or developing creative financing structures to attract top tier acquisition targets. But with this growth comes increased scrutiny from regulators and investors, especially as new rules and regulations are introduced by the SEC and other authorities.

For companies considering a SPAC transaction, it’s essential to weigh the benefits – faster access to public equity and the expertise of seasoned sponsors – against the risks – increased regulatory oversight and need for robust governance. The track record and alignment of interests between sponsors and investors should be a key factor in the decision making process. Staying informed about evolving rules and best practices will be critical to compliance and maximizing the benefits of a SPAC listing. By approaching the process strategically and with a clear understanding of the current landscape, companies can position themselves to take advantage of the opportunities that SPACs offer in the ever changing world of capital markets.

Conclusion: SPACs aren’t a shortcut – they’re a strategy

Going global through a SPAC can be a big, game changing move for an ambitious ASEAN company. It offers speed and valuation certainty that a traditional IPO can’t. But it requires a disciplined and strategic approach. It trades the uncertainties of the market for the certainties of intense regulatory scrutiny and operational excellence.

Ready to unlock your growth now? Viettonkin helps ASEAN companies navigate the complexities of SPAC transactions with legal, financial and market expertise. Let’s start with a readiness audit to see if a SPAC is the right strategy for you. Only forward.

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Countries set FDI targets—jobs, greenfield investment, technology transfer—yet too often receive only applications, not factories. Governments seek high‑quality investment; corporations demand speed, certainty, and incentives. With 20 years advising both IPAs and MNCs under the Law on Investment 2020 (amended 2025), I know the gap: execution. That’s where FDI consultants deliver—turning policy into real projects.

Key Takeaways:

• Strategic Bridge‑Builders: FDI consultants align IPA objectives (jobs, tech transfer) with corporate requirements under Decree 31/2023/NĐ‑CP, producing actionable pipelines of vetted projects and investors.
• Proactive IPAs Win: Top IPAs commission market diagnostics, sector mapping, and investor roadshows—moving beyond inward‑facing approvals to targeted outreach in priority industries, per UNCTAD WPIR 2025 benchmarks.
• Speed & Certainty: Consultants shrink market‑entry timelines—IRC/ERC in 10 days via Decree 31/2023—and negotiate tailored incentives (CIT holidays, land rent cuts) under national and provincial frameworks.
• Holistic Expertise Required: Effective FDI support integrates corporate law (LLC/JV setup), tax optimization (CIT, VAT incentives), customs and trade facilitation, plus GIS‑driven site selection—avoiding costly handoffs between specialists.
• Tangible Outcomes Only: Deliverables aren’t PPT decks but live projects—signed leases, disbursed capex, jobs created, and published compliance certificates—measured against IPA KPIs like realized FDI and quality‑job metrics.

What is FDI Consulting?

FDI consulting specializes in converting national investment policies into operational projects. Consultants—often ex‑IPA directors or industry experts—provide data‑driven market analyses, policy benchmarking (against peers per UNCTAD WIR 2025), and tailored investor dossiers. They position jurisdictions to win bids from multinational corporations and guide firms through local incorporation, incentive applications, and compliance, ensuring mutual success.

What Does an FDI Consultant Do?

FDI consultants function as:

1. Policy Translators: Decode IPA incentives (tax holidays, land rates under Land Law 2024) for C‑suite and CFOs.
2. Strategists: Use GIS‑powered site evaluation, labor‑cost modeling, and supply‑chain mapping to craft project feasibility studies.
3. Facilitators: Manage IRC/ERC applications per Decree 31/2023, negotiate land‑lease terms, and coordinate one‑stop‑shop approvals—ensuring end‑to‑end execution.

Government Core Functions

For Investment Promotion Agencies (IPAs) and government bodies, we help turn policy into a pipeline of qualified investors.

• Sector Targeting & Positioning: We analyze global trends to identify which high value industries a country should target and help craft a value proposition to attract them.
• Policy Diagnostics & Incentive Design: We audit a country’s existing FDI ecosystem, benchmark it against the competition to ensure clients maintain a competitive edge, and advise on designing tax holidays and other incentives that are both attractive and fiscally responsible. Our analysis provides actionable recommendations based on research and industry expertise to support decision making.
• Investor Outreach & Lead Qualification: We build a qualified pipeline of potential investors, moving beyond passive promotion to actively engage decision makers at target companies.

Private Firm Roles

For global businesses looking to expand, we are the on-the-ground execution arm.

• Site Selection & Cost Modeling: We provide data driven analysis to help you choose the optimal location, comparing industrial zones, labor costs and logistics infrastructure, and support you in setting up in the target market.
• Licensing & Compliance: We manage the entire market entry process, from securing investment licenses and tax codes to ensuring you meet all local compliance requirements.
• Government Negotiation: We leverage our understanding of the system to negotiate the best possible incentives, including tax breaks and grants, on your behalf.

Types of FDI Consultants and Their Deliverables

The FDI consulting field is diverse, with firms specializing in different areas. These consultants offer a wide range of services including market entry support, investment facilitation and tailored solutions to help businesses expand internationally. To develop effective strategies consultants use various forms of analysis and research, such as market studies, risk assessments and structured reporting formats.

Public Facing Consultants (for Governments)

These consultants focus on “place branding” and institutional readiness. Their work involves developing investor facing messaging, organizing investment promotion events and training local IPA staff to be more effective. The KPIs here are about building a country’s reputation and internal capacity.

Private Sector Facing Consultants (for Businesses)

These consultants are focused on the corporate client’s journey, helping clients secure international deals as part of their deliverables. Deliverables include detailed market expansion models, hands on support with company incorporation, facilitation of meetings with government authorities and advising on product related considerations during market expansion. The goal is a successful market entry, on time and on budget.

Multidisciplinary vs Boutique Specialists

Some firms specialize only in legal setup or site selection. However the most effective approach is multidisciplinary as these firms handle different aspects of FDI project management such as booth setup, client engagement and partnership development. An FDI project is like a complex machine; the legal, tax, trade and operational parts must work together seamlessly. Using separate specialists can create friction and risk.

FDI Trends and Insights

In the fast evolving world of foreign direct investment, staying ahead of the curve is key. FDI consultants rely on a global network of experts to monitor the latest market trends, investment strategies and industry shifts. By analyzing up to date insights they help clients identify emerging opportunities and potential risks across different regions and sectors.

This intelligence allows governments and businesses to refine their strategies, stay competitive and attractive to investors. Whether it’s understanding new regulatory environments, tracking shifts in global supply chains or spotting high growth industries, access to timely FDI trends and insights is a game changer for anyone looking to attract investment and grow the economy.

Why Governments Hire FDI Consultants

In the fast evolving world of foreign direct investment, staying ahead of the curve is key. FDI consultants rely on a global network of experts to monitor the latest market trends, investment strategies and industry shifts. According to UNCTAD’s World Investment Report 2025, global FDI is projected to fall 11% to USD 1.5 trillion in 2024, with significant contractions in infrastructure and green projects. This signals increased competition and higher stakes for emerging markets seeking capital.

From Reactive to Strategic Investment Promotion

Many IPAs are stuck in a reactive mode, simply processing applications as they arrive. We help them become strategic hunters. Our consultants have worked with various governments to develop strategic investment promotion campaigns that effectively target and attract investors. This involves building a compelling narrative about why their country is the right choice for specific industries. As analysis from TPM points out, understanding Vietnam’s key economic trends in 2025 is crucial for investors, and governments must be able to articulate how their policies align with this growth trajectory.

Institutional Readiness and Reform Support

Often the biggest barrier to FDI is internal bureaucracy. As consultants we stand at the beginning of the reform process, guiding governments through each stage to streamline their approval processes. Sometimes this means helping to set up “one-stop-shop” service centers for investors. This aligns with the legal reforms mentioned in a 2024 outlook from White & Case where Vietnam’s efforts to modernize its regulatory framework is seen as a key driver of investor confidence.

1. Total Capital Expenditure (Capex) Realized: The actual amount of investment that lands, not just what was pledged.
2. Quality Job Creation: Focusing on high-skill, high-wage jobs, not just volume.
3. Sectoral Alignment: Success in attracting target industries (e.g., high-tech, green energy).
4. Supply Chain Localization: The extent to which the new investment integrates with and uplifts local suppliers.
5. ESG Compliance: Attracting projects that meet high environmental, social, and governance standards.

Why Businesses Use FDI Consultants

Entry Speed, Certainty and Competitive Intelligence

For a business time is money. A consultant accelerates your market entry by months if not years. We provide certainty in an unknown environment. This includes deep analysis of local labor conditions, logistics networks and potential regulatory hurdles. As a recent Premia Partners outlook for 2025 highlights, understanding the nuanced risks and value opportunities in emerging ASEAN markets is critical especially in a shifting global trade environment. A consultant provides this ground-level intelligence.

Incentive Structuring and Government Engagement

Securing government incentives is a formal negotiation process. We know who to talk to – whether it’s the Ministry of Planning and Investment (MPI) in Vietnam or the Board of Investment (BOI) in Thailand – and we know how to prepare the investor dossier in a way that aligns with their development goals, maximising your chances of approval.

Aftercare and Long-Term Success Support

We don’t stop working once your factory is built. We provide ongoing support to help with expansion plans, manage compliance and troubleshoot any issues with local authorities. This “aftercare” is key to long term operational success and we support our clients through to project close and beyond.

Regional Expertise

Every region and country has its own unique set of opportunities and challenges when it comes to attracting foreign direct investment. That’s why regional expertise is at the heart of effective FDI consulting. Experienced consultants with deep local knowledge can provide tailored advice that takes into account the specific dynamics of each market.

They work closely with local companies and government agencies to identify the most promising investment opportunities and develop strategies that resonate with target investors. By understanding the nuances of local regulations, business culture and competitive advantages, these consultants help clients navigate the complexities of FDI and achieve successful outcomes in their chosen regions.

How to Choose the Right FDI Consultant

For Governments: Questions to Ask Before Hiring

• Can you show us experience with our country’s regional competitors?
• How do you model the fiscal ROI and job creation impact of the incentives you recommend?
• How will you ensure the data and investor pipeline you build remains with us after the engagement ends?

For Businesses: Red Flags and Green Lights

• Red Flag: Anyone who over-promises on timelines or guarantees a specific tax incentive before a formal application is made.
• Red Flag: A lack of deep familiarity with the specific regulations and officials in your target province or industrial zone.
• Green Light: Complete transparency on fees, a clear definition of success and a robust confidentiality agreement.

Digital Marketing in FDI Consulting

In today’s digital age a strong online presence is essential for regions and countries looking to attract foreign investment. Digital marketing has become a key tool in the FDI consultant’s toolkit, enabling clients to showcase their value proposition to a global audience.

Through targeted online campaigns, engaging content and strategic use of social media, consultants help clients build their brand as a leading investment destination. By leveraging digital marketing strategies FDI consultants ensure their clients’ unique strengths and opportunities reach the right investors, wherever they are in the world. This increases visibility and drives meaningful engagement with potential partners and stakeholders.

Case Studies and Success Stories

FDI consulting is best demonstrated through real life examples. In 2024, Da Nang worked with consultants to attract $1B in tech FDI (e.g., Intel’s chip facility) by refining its value proposition and streamlining approvals, per Vietnam Investment Review. A global firm, advised by us, entered Binh Duong’s industrial park, securing a 10% CIT rate, saving $2M annually, per MPI data.

In another case a global business looking to enter a new market used FDI consultants for site selection, regulatory navigation and government negotiations and achieved a smooth and cost effective market entry. These examples show how strategic consulting, local expertise and innovative marketing can turn investment ambitions into tangible results and drive growth and long term success for both regions and companies.

Conclusion: Smart FDI Needs Smart Facilitators

Whether you are a government trying to attract capital or a corporation looking to deploy it, your outcome will be determined by the quality of your guidance. A good FDI consultant bridges the gap between ambition and reality, manages risk and unlocks value for all stakeholders. This is how sustainable growth happens.

Viettonkin has been the bridge for over 2,000 FDI moves across ASEAN and beyond. For strategy that lands, partners that execute and outcomes that scale – talk to us.

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Want stable, long‑term growth in ASEAN’s fastest‑expanding market? Vietnam’s blue chips—large‑cap leaders trading on HOSE—offer exactly that. With two decades advising FDI under Law on Securities 2006 (amended 2023), I’ve seen these stocks become pillars of resilience, governance, and value for global investors.

For global investors and M&A teams, knowing which companies are considered “blue chip” in Vietnam is crucial. These are not just local giants; they are strategic assets that can be a foundation for any emerging market portfolio. Blue chip companies are also contributing to Vietnam’s economic growth and market stability.

Vietnamese Stocks

Vietnam’s equity market—now boasting a market capitalization of over $200 billion on HOSE per 2025 annual report—is a magnet for global capital. As FDI into listed firms rose 15% YoY, blue chips (large‑caps in the VN30 Index) became the bedrock of portfolios seeking consistent ROEs above 15% and daily liquidity exceeding 1 million shares.

The VN‑Index and VN30 Index (top 30 by market‑cap on HOSE) serve as barometers of market vitality. As of July 2025, VN30 YTD returns stand at 10.3%, outpacing VNMidCap and VNSmallCap by 4 percentage points—proof that large‑caps are the stability anchors amid capital rotations and FOL‑driven flows.

Key Points

• Defining Blue Chips: No official label exists, but consensus criteria include: market cap ≥ 10 trillion VND (≈ $400 m), 5+ years of profit, ROE > 15%, and average daily turnover > 500,000 shares. Most are joint‑stock companies and comprise the VN30 Index under Articles 12–13, Securities Law 2006.
• VN30 Sector Weights: Banking/Finance 32.5%, Real Estate/Construction 22.8%, Consumer Goods 16.4%, per 2025 HOSE Factsheet. Major players: VCB, BID, CTG in finance; VHM, VIC in real estate; MSN, VNM in consumer—each subject to FOL caps (30% in banking, 50% elsewhere) under Decree 60/2015 (amended 2024).
• Performance Metrics: Blue chips average ROE ≈ 18% vs. 14% for ASEAN peers. Dividend yields range 2–4% (lower than regional peers) as earnings are reinvested. Data per BLOOMBERG July 2025—highlighting trade‑off between yield and growth investment.
• Investor Access: Foreign ownership limits (FOLs) are a key consideration. Banking 30% cap; real estate 50% cap; industrial 100% in most parks. Some charters set tighter limits. Once a counter hits its FOL, only foreign‐to‐foreign trades occur, often at premiums—impacting liquidity and index inclusion dynamics. Regulated under Circular 12/2024/TT‑BTC.
• Strategic Use‑Cases: Blue chips serve as JV benchmarks, M&A platforms, or partial stake acquisitions—enabling foreign players to gain market footholds. Their governance and disclosure (IFRS‐aligned) make them ideal for cross‐border deals under Decree 155/2020/ND‑CP on M&A transactions.

What makes a company “Blue Chip” in Vietnam?

There is no official government list but Vietnam's FIs and brokers have a clear consensus on these hallmarks for blue chips:

1. Market Cap ≥ 10 trillion VND (≈ $400 m).
2. 5+ years of consecutive profitability (P&L).
3. ROE ≥ 15%, demonstrating capital efficiency.
4. Average Daily Turnover ≥ 500K shares, ensuring liquidity.
5. Regular Dividend Payouts (min. 2% yield) or a clear reinvestment policy.

Characteristics of Blue Chips in Emerging Markets

• Capital and Liquidity Benchmarks: A key benchmark for a blue-chip company is a Market Cap ≥ 10 trillion VND (approx. $400 million USD) per HOSE classification. These companies also have a Revenue Growth ≥ 5% YoY for at least 3 years and a high liquidity, often with an Average Daily Turnover ≥ 500K shares and a Free Float ≥ 25%, providing ample market support and tight bid-ask spreads per Circular 12/2024/TT-BTC.
• Stability and Governance: Blue chips are known for their ability to weather economic cycles, which is underpinned by a strong track record of financial stability and governance. These companies typically have a Profitability Track Record of at least five years of positive EBIT (Earnings Before Interest and Taxes) and an ROE (Return on Equity) ≥ 15% annually. Strong governance is also a hallmark, with Corporate Governance Scores ≥ 70 (on a 100-point MSCI ESG scale) and Board Independence ≥ 30% of non-executive directors, as per Listing Rules, Section B.4. Consistent profitability, high ROE, and robust governance are the hallmarks of their resilience.
• Index Presence: The de facto list of blue chips is the VN30 Index which comprises the 30 largest and most liquid stocks on the Ho Chi Minh Stock Exchange (HOSE). These companies account for 70-80% of the market’s total daily trading value. Several blue chips are also investment JSCs, reflecting their influence on the market index and investor sentiment.

Vietnam-Specific Criteria and Investor Signals

• Government-Linked vs. Private-Sector: The blue-chip landscape includes a mix of powerful state-owned enterprises (SOEs) that have undergone equitization and dynamic private-sector corporations. Many blue chips are structured as a group joint stock company which is a common form for large publicly traded companies. Understanding the ownership structure is key to predicting governance style and strategic direction.
• Free Float and Foreign Ownership Caps: Foreign ownership limits (FOLs) are a key factor. While Vietnam has liberalized the rules, certain strategic sectors like banking (30% cap) and real estate (50% cap) have restrictions. Companies can also set their own lower FOLs in their charters, a practice the Ministry of Finance has recently sought to reform to enhance market attractiveness. When a stock hits its FOL, it can only be traded between foreign investors, often at a premium.

In terms of governance, a clear mission guides blue chip companies’ long-term strategy, ensuring alignment with both shareholder interests and broader societal values.

Top Blue Chip Companies on the VN30 Index in 2025

VN30’s Leading Lights:

Here are the top five VN30 stocks by market cap as of July 2025 (HOSE data):

1. Vingroup (VIC): 250 trillion VND cap; real estate, retail, EVs.
2. Vietcombank (VCB): 200 trillion VND cap; premier state bank.
3. Vinhomes (VHM): 180 trillion VND cap; residential development.
4. FPT Corp. (FPT): 120 trillion VND cap; IT & telecom.
5. Vinamilk (VNM): 110 trillion VND cap; dairy & consumer staples.

Sector Breakdown and Market Influence

An analysis from early 2025 shows the dominant sectors in the VN30, which are the core of Vietnam's economy:

• Banking and Finance (32.5%): This is the largest and most influential group, featuring Vietcombank (VCB), BIDV (BID), and VietinBank (CTG). Their performance is a direct reflection of Vietnam's macroeconomic health, with strong credit growth and improving net interest margins.
• Real Estate & Construction (22.8%): Led by Vingroup (VIC) and Vincom Retail (VHM), this sector is the backbone of Vietnam's rapid urbanization and infrastructure development.
• Consumer Goods & Retail (16.4%): Companies like Masan Group (MSN) and Vinamilk (VNM) are tapping into the country’s growing middle class and increasing disposable income.
• IT & Telecom (8.7%): Led by FPT, this sector is a significant and growing contributor.
• Materials & Industrials (7.3%): Key players include Vietnam Rubber Group (GVR) and Hoa Phat Group (HPG).
• Utilities & Energy (4.3%): Major contributors in this segment are Power Generation Corporation 3 (PC1) and PV Gas (GAS).
• Others (8%): This category includes all other sectors within the VN30.

Leaders in Governance, ESG and International Partnerships

More and more Vietnamese blue chips are aligning with global standards. Companies are seeking and achieving MSCI ESG ratings to attract foreign institutional capital. For example, VinFast has been recognized for its high ESG rating among electric vehicle makers.

Strategic international partnerships are also a hallmark of leading companies. FPT Corporation, a technology leader, is known for its global collaborations and strong focus on digital transformation to stay ahead in technology trends. The banking sector and FPT are also investing in cutting edge technology to drive innovation. Vingroup’s push into the global electric vehicle market with VinFast is another example of this outward-looking strategy.

VN Blue Chips in 2025

Vietnam’s stock market is expected to have a breakout year with some analysts predicting the VN-Index to reach 1,400-1,450 by year-end driven by stable economic fundamentals and 18-20% corporate earnings growth.

Stock Performance, Volatility and Yield

As of early July 2025, the VN30 index has gained 10.26% YTD. In the first half of the year, blue chips were the main driver of the market with some blue chips’ stock prices moving significantly. During a recent market upswing, blue chips rose strongly and overall sentiment improved. However, some stocks like BVH of Bao Viet Holdings and GVR of Vietnam Rubber Group declined, a sector correction.

Some stocks remained flat, stable during the market moves. Compared to the previous session, trading volume increased with 15 million shares traded, equivalent to 300 billion VND. Foreign investors have sold for 7 consecutive sessions, a sign of outflows. Historically, the large-cap VN30 has lower volatility than VNMidcap and VNSmallcap indices, a measure of stability during market fluctuations.

Recent data from late June 2025 showed mid-cap stocks leading the gains, a sign that the market is broadening out beyond just the top blue chips. VNMIDCAP Index rose 1.10% while VN30 edged up 0.11%, a trend that suggests capital is rotating into other segments. This is information available at The Shiv. In this environment, investors can find opportunities, including short term opportunities for traders to buy at technical support levels. A photo of an investor looking at stock prices on a smartphone at a brokerage is a snapshot of the modern digital trading world.

Dividend Policies and Investor Rewards

Blue chips in Vietnam generally pay dividends. But a unique feature is that foreign investors sometimes prefer companies to retain earnings to reinvest in growth, as Vietnam is a high-growth market. For corporate investors, dividends are tax free. The process to repatriate dividends is straightforward: the company must be profitable, have audited financials submitted and notify tax authorities.

M&A, FDI and Strategic Moves

Blue chip space is hot for M&A. Foreign partners are looking to enter Vietnam’s financial, tech and manufacturing sectors. Recent deals like JB Financial Group’s acquisition of stake in fintech platform Infina and KKR’s investment in Medical Saigon Group are examples of the active M&A landscape.

Listed Companies and Group Structure

Vietnam’s listed companies are grouped into different categories based on market capitalisation, providing investors with a framework to evaluate stability and growth potential. At the top of this structure are the large cap stocks, companies with market capitalisation above VND 10 trillion. These blue chip stocks are well known for their leadership in key industries, strong financials and proven track record of growth and profitability over time.

Notable examples of blue chip companies in Vietnam are Vietnam Airlines, Vietcombank and Vinhomes. These industry leaders are not only pillars of the Vietnamese economy but also well respected by domestic and foreign investors. Their consistent performance and market influence make them highly sought after for investment portfolios.

The Vietnamese stock market has two main exchanges: Ho Chi Minh Stock Exchange (HOSE) and Hà Nội Stock Exchange (HNX).

The VN-Index and HNX-Index are the main indices for these exchanges respectively. In recent sessions, foreign investors have been net buyers, a sign of positive outlook and growing confidence in the market. This trend combined with the development of large cap stocks and increasing participation of global investors is a testament to the strength and resilience of Vietnam’s listed companies and the overall stock market.

How Global Investors Use Vietnam’s Blue Chips

For international funds and corporations, Vietnamese blue chips are more than just stocks. They are strategic tools to enter and navigate the market.

• Equity Portfolio Diversification: Vietnamese blue chips are a way to get exposure to one of the world’s fastest growing economies. Their low correlation with major global indices can be a valuable hedge in an ASEAN portfolio. The country’s growth prospects and stable market is a compelling alternative to more mature markets.
• Strategic Partnership Benchmarks: Looking to enter Vietnam via a joint venture? Blue chips are your benchmark. They have established operations, regulatory compliance and often experience with international partners make them ideal for JVs in infrastructure, tech and retail. Blue chip companies play a significant role in supporting foreign trade and Vietnam’s international economic integration. Evaluating their governance and corporate culture is a due diligence step.
• Cross-Border Exit and Liquidity Planning: For funds, a clear exit path is key. Investing in highly liquid blue chips on HOSE ensures capital can be repatriated efficiently. Understanding the regulations around capital gains and dividend repatriation is crucial to maximise returns.

How to Choose the Right Blue Chip for Your Strategy

Ready to unlock growth potential? Choosing the right blue chip goes beyond the obvious metrics. Here’s how I advise my clients to build a risk-proof strategy.

• Metrics Beyond the Obvious: Go beyond market cap and revenue. Analyse Return on Equity (ROE) and Return on Assets (ROA) against sector peers to gauge capital efficiency. Look at debt structure—a conservative financial approach is often a sign of stability.
• Tools for Real-Time Analysis: Use a combination of global and local resources. Platforms like Bloomberg, TradingView and data from MSCI and FTSE provide international standard analysis. For on-the-ground insight, local brokerages like SSI, VNDirect and Hanoi Securities offer valuable market data and analysis, especially on HNX.
• Common Mistakes to Avoid: Foreign investors can underestimate “liquidity traps” where a stock appears attractive but is hard to trade due to FOLs. Don’t misread the influence of family ownership or rely solely on annual reports without on-the-ground validation.

Vietnam’s Blue Chips Are More Than Safe Havens—They’re Strategic Assets

In the ever-changing FDI landscape, Vietnam’s blue chips are a rare combination of stability and growth. They are the foundation of the market, a safe entry point for institutional investors and a benchmark for corporate partnerships.

Whether you’re building a portfolio or entering the market, they are the most bankable assets in Vietnam. Work with us to turn challenges into wins—because when it comes to your next big win, there’s only forward

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Ready to unlock unprecedented growth? For years, I’ve worked with investors and business leaders across Vietnam, China and Malaysia, turning market complexities into strategic wins. Today, one topic dominates our strategy sessions: green investment. This is no longer a niche interest; it’s become a core component of smart portfolio construction. With $3 trillion in ESG-labeled assets and mandatory disclosures under the EU SFDR, ASEAN Taxonomy, and looming SEC climate rules, 2025 marks the year green credentials shift from “nice-to-have” to “must-have.”

My role is to bridge the gap between green ambitions and on-the-ground reality in Southeast Asia, connecting international capital with the region’s most promising sustainable ventures. Let’s dive into why green investment is a game-changer for your investment strategy.

Key Takeaways

• Green vs. ESG: Green investing zeroes in on projects with clear environmental outputs (renewables, clean tech, nature-based solutions) as defined by the EU Taxonomy and ASEAN Taxonomy for Sustainable Finance—beyond the broader ESG lens.
• Returns Match or Beat: Between 2018–2024, green ETFs such as iClima Global Clean Energy ETF matched the S&P 500’s 60% total return. Long-term data from Morningstar (2025) confirms “green alpha” in energy transition sectors.
• Regulations Mandate Green: SFDR Articles 8–9 label funds “light” or “dark green.” SEC’s proposed climate rule compels Scope 1–3 emissions reporting. ASEAN’s draft taxonomy guides ASEAN-wide green bond issuance per ASEAN Bankers’ Association.
• ASEAN Green Surge: Vietnam’s Green Bond Decree 153/2020 and the World Bank’s June 2025 Sustainable Finance Facility are channeling $5 billion into renewables by 2030, unlocking solar, offshore wind, and green hydrogen ventures.
• Verification Imperative: Certification by Climate Bonds Initiative (CBI), adherence to ICMA Green Bond Principles, and alignment with ASEAN Green Bond Standards ensure proceeds fund legitimate green projects—protecting investors from greenwashing risks.

What Counts as Green Investment Today?

Understanding the landscape starts with clear definitions. It’s about moving past buzzwords to know what constitutes a green investment in 2025. In 2025, green investment must pass taxonomy tests—projects or companies must align with prescribed environmental objectives (climate mitigation/adaptation, pollution control) under:

• EU Taxonomy Regulation (2020/852/EU)
• ASEAN Taxonomy for Sustainable Finance, and
• Vietnam’s forthcoming Green List Decree (expected 2025)

Definitions That Go Beyond Buzzwords

ESG	Green Investing
Evaluates firms across Environmental, Social, and Governance metrics (e.g. MSCI ESG Ratings)	Capital allocation to assets with tangible environmental outputs—renewable energy capacity added (MW), greenhouse-gas reductions (tCO2​e), or biodiversity restoration (hectares)—all certified to avoid greenwashing.

At its core, green investment is a subset of socially responsible investing. While ESG investing assesses a company’s overall ethical and sustainable practices, green investing zooms in on one mission: funding projects and companies that have a direct positive impact on the natural environment. Green investing includes companies and ventures that practice environmentally responsible practices and environmentally friendly investments are both impactful and profitable, attracting investors who want returns and positive environmental outcomes.

This is key. Regulatory bodies are creating specific frameworks or taxonomies to define what qualifies. The EU Taxonomy was the first, now the ASEAN Taxonomy for Sustainable Finance and Vietnam is developing its own “Green List” to direct investment towards national sustainability goals. This push for clear standards is a response to greenwashing where impact is claimed but not certified.

ESG investing is a broader movement influencing company decisions and capital flows, shaping how companies approach green projects and sustainability. Reviewing a fund’s prospectus is essential to understand its green credentials, holdings and investment strategy to ensure alignment with your values.

Types of Green Investment Vehicles

You can channel capital into green initiatives through:

1. Debt Instruments: Green bonds and green loans are raised to fund specific environmental projects such as renewable energy infrastructure. Transition finance is a growing category, providing capital to help carbon-intensive companies decarbonize their operations.
2. Equity: This includes investing in renewable energy startups, buying shares in cleantech ETFs or backing established public companies with strong ESG credentials and a clear green focus. Product lines can be dedicated to green initiatives or span multiple business areas, allowing companies to diversify their green offerings.
3. Real Assets: Think tangible investments like certified green buildings, projects that enhance energy efficiency and sustainable agriculture or reforestation initiatives.

The Role of Verification and Certification

In 2025, investor trust is built on verification. Third-party bodies are essential to ensure funds are used as intended. The Climate Bonds Initiative certifies green bonds, the International Capital Market Association (ICMA) sets the Green Bond Principles. For corporations, adherence to frameworks like the EU’s Sustainable Finance Disclosure Regulation (SFDR) is becoming a requirement to attract European capital.

Also review a stock’s annual filings to verify a company’s green claims and ensure transparency. Special considerations are needed due to varying definitions of ‘green’ so thorough research is key before investing.

Why Green Investment Is Accelerating in 2025

The momentum behind green finance is not just ideological; it’s driven by powerful economic and regulatory forces. This is a rising tide lifting all boats committed to sustainability. There is a growing need for sustainable solutions which is influencing company strategies and driving more capital towards green initiatives. A key factor in the adoption of green technologies is the cost of capital which shapes investment decisions in renewables and other sectors.

Regulatory and Capital Market Pressures

Governments worldwide are embedding climate considerations into financial regulations. The SEC’s climate risk disclosure rules in the US and the EU’s Carbon Border Adjustment Mechanism (CBAM) are forcing companies to account for their environmental footprint. If your supply chain isn’t green, you may face future tariffs and market access barriers. This makes green investment a defensive necessity as much as an offensive strategy.

Climate Risk as a Fiduciary Responsibility

Institutional investors now view climate risk as a core fiduciary duty. They are modeling the impact of physical climate events on their assets and actively avoiding potential “stranded assets” – investments that could lose value as the world transitions away from fossil fuels. This perspective is reshaping insurance pricing and driving capital allocation mandates from major players like BlackRock and GIC.

Emerging Markets and Climate Finance

Emerging economies, particularly in ASEAN, are at the frontline of both climate risk and green opportunity. Vietnam for instance requires an estimated $368 billion through 2040 to build a climate-resilient and low-carbon economy. To address this, the World Bank announced in June 2025 a multi-donor Sustainable Finance Facility for Vietnam, designed to mobilize private capital for the country’s climate goals.

This is a powerful trend: the stacking of public and private capital to fund large-scale green infrastructure projects across the region.

Developing countries face significant challenges in accessing climate finance with a notable finance gap and the need for climate justice to support those most affected by climate change.

How Green Investment Performs Compared to Traditional Assets

The ultimate question for any investor: what about the returns? The narrative that green investment requires a financial sacrifice is officially outdated.

Historical Returns and VolatilityA look at the data from 2018 to 2024 shows that green-themed ETFs have often performed in line with or even beaten traditional benchmarks like the S&P 500. For example, Corporate Knights’ 2025 analysis of the most sustainable funds highlights products like the Desjardins SocieTerra Environment Fund which has a portfolio with significantly lower carbon and waste footprints than its benchmark and delivers competitive returns. Green assets also showed remarkable resilience during the market volatility of the COVID-19 pandemic.

Green Alpha: How Mission-Driven Capital Finds Outperformance

“Green Alpha” refers to the excess returns generated from sustainable investments. This outperformance often comes from a first-mover advantage in sectors benefiting from new regulations, like clean energy. It also comes from long-horizon returns in assets like green real estate and battery storage which are foundational to a low-carbon economy. Companies with a genuine commitment to sustainability build an “impact moat” – a competitive advantage rooted in brand loyalty, operational efficiency and resilience to future shocks.

New technologies and green technologies are driving this outperformance, enabling companies to achieve net zero goals and transform their business models for a sustainable future.

Common Misconceptions That Stall Green Investment

Despite the clear momentum, some persistent myths prevent investors from going big on green. Let’s tackle them head-on with strategic insight.

“Green Means Lower Returns”: This is the most common and most easily debunked myth. Five-year return data for both public and private green assets shows performance is sector-specific, not color-based. The so-called “green premium” is fading as technologies mature and scale, leading to a convergence in yields with traditional assets.

“Green Projects Are Hard to Verify”: While greenwashing is a real risk, the verification ecosystem has matured significantly. Third-party rating agencies, ESG auditors and transparent impact reporting frameworks are now standard practice. A clear checklist for investees, demanding specific KPIs and Monitoring, Reporting and Verification (MRV) protocols, is your best defense.

“It’s Only for Large Investors or Banks”: Access to green investment has been democratized. Green ETFs are available to any retail investor and robo-advisors increasingly offer sustainable portfolio options. In ASEAN, there are now SME-targeted climate funds and microfinance initiatives designed to bring green capital to every level of the economy.Some investors may have only financial goals, others may have environmental impact as their priority – one investor’s definition of green may differ from another’s, hence the importance of understanding multiple perspectives.

The amount of capital invested in green projects is growing fast and using ESG criteria helps investors make more informed decisions that align with both financial and environmental objectives.

What Green Investment Means for ASEAN Investors

For us in Southeast Asia, the green transition is the biggest opportunity of the decade. Your gateway to sustainable and resilient manufacturing and infrastructure is right here.

The World Economic Forum plays a key role in promoting green investment and sustainable investing globally, bringing together collaboration and best practices to accelerate climate action.

Vietnam’s Emerging Green Finance Ecosystem

Vietnam is a prime example of a country going all-in on green growth. The country’s National Green Growth Strategy sets ambitious targets for reducing emissions and increasing sustainable infrastructure. As reported by REGlobal, an online publication focused on the renewable energy sector, Vietnam’s strategy creates a clear pathway for green finance, aligning national policy with the need to attract foreign capital. The State Bank of Vietnam is promoting green banking reforms and the government is actively seeking FDI for low-carbon projects.

Opportunities in Climate-Smart Sectors

The demand for green investment in Vietnam and across ASEAN is huge. Key opportunities include:

1. Renewable Energy: Solar, wind and hydropower projects supported by favorable government policies and power purchase agreements (PPAs).
2. Electric Mobility and Smart Logistics: Building the charging infrastructure and logistics networks for an EV-powered future, electric vehicles as a key area of green investment and sustainable transportation.
3. Green Buildings and Water Treatment: A construction boom driven by demand for certified sustainable buildings and urgent needs for modern water infrastructure.
4. Water Usage: Monitoring and reducing water usage is a key KPI for green projects, alongside emissions reduction and community engagement.

As an FDI consultant, my role is to connect foreign capital with these verified local projects. I help investors navigate the landscape of tax incentives and subsidies and structure ESG-aligned deals that deliver both financial returns and measurable impact.

Green Is the Growth Asset Class of the Decade

Green investment is no longer about making trade-offs; it’s about seizing a generational opportunity. It offers a path to build resilient portfolios, meet regulatory demands and contribute to a sustainable future without sacrificing returns. In 2025 and beyond, green isn’t just a filter you apply to your strategy – it’s the foundation of forward-thinking investment. Work with us to turn challenges into opportunities. Let’s invest in tomorrow today.

Types of Green Investments

The green investment landscape is vast, offering options for different risk profiles and investment goals. Green stocks are shares in companies that are leaders in environmentally friendly industries – renewable energy, sustainable agriculture, waste management. These companies are often at the forefront of innovation, driving the adoption of clean technologies and sustainable practices.

Green bonds are another popular choice, providing fixed income securities that finance projects with measurable environmental benefits – wind farms, solar panels, water conservation initiatives. For those who want diversification, green ETFs and mutual funds bundle together green stocks, bonds and other securities, allowing investors to support a wide range of environmentally friendly companies and projects. This not only spreads risk but also amplifies the environmental impact of your portfolio.

Green Investment Options

Today investors have more green investment options than ever. Green stocks and green bonds are the foundation, offering direct exposure to environmentally friendly companies and projects. Green funds – whether mutual funds or ETFs – provide a convenient way to invest in a diversified basket of green assets – clean energy innovators to sustainable infrastructure developers.

For those who want to make a tangible difference, impact investing is an attractive option. This approach targets companies or projects that generate both financial returns and measurable social or environmental benefits. Investors can also look into green real estate – energy efficient buildings – or participate in large scale infrastructure projects – wind farms and solar panel installations. With so many options available, it’s easier than ever to build a portfolio that reflects your commitment to sustainability.

Financial Goals and Green Investment

Success with green investing starts with clear financial goals and risk tolerance. Every investor’s definition of green investing is different, so make sure your investments align with your values and long term objectives. Do thorough research and due diligence is key, some companies may overstate their environmental practices or greenwash.

When evaluating green investments consider the role of governance factors and ESG reporting in your decision making process. Transparent disclosures and strong environmental commitments are important indicators of a company’s real impact. By choosing green companies and projects, investors can achieve their financial goals and make a positive impact on the environment. Ultimately, informed investment decisions based on clear objectives and research will help you get the best of both worlds – financial returns and positive impact.

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