Cost of Starting a Business in Vietnam

Cost of Starting a Business in Vietnam Chi phí thành lập một doanh nghiệp là một trong những vấn đề được quan tâm hàng đầu bởi các nhà đầu tư nước ngoài khi có ý định tiếp cận thị trường Việt Nam

The cost of starting a business is one of the top concerns of foreign investors when intending to approach the Vietnamese market. Understanding this concern, TTVN Legal will provide an overview so that foreign investors can better understand and easily prepare when making investment decisions.

1. Cost of starting a business

Before carrying out the procedures for registering a business establishment at a competent state agency, foreign investors need to make a detailed plan, including: business name, head office address (expected), phone number, fax, email; line of business; shares owner, charter capital, legal representative, corporate charter (if any), expected number of employees… and financial preparation, business plan.

Below are some of the reference establishment costs for foreign investors to consider when starting to plan.

Procedure Estimated cost
Check the expected business name to be used; application for issuance of Investment Registration Certificate (if applicable), Enterprise Registration Certificate as well as Tax Registration Certificate at the competent state agency USD 12.72
Make a seal USD 8.48 – 16.97
Open a bank account No charge
Publication of business registration information at the National Business Registration Portal USD 4.24
Business license tax USD 84.84 – 127.25
Using e-invoices (provided by units authorized to issue e-invoices in Vietnam) USD 20.36 – 207.85
Register with the local labor agency to declare the employment (Department of Labor – Invalids and Social Affairs) No charge
Employees register with the Social Insurance Fund to pay health insurance and social insurance No charge
Register trade union activities with the Vietnam General Confederation of Labor (if applicable) No charge

2. Cost of renting virtual office/office and factory

The business’s office location is also one of the mandatory information when establishing a business. Foreign investors can refer to virtual office and fixed office according to the expected price list below.

2.1 Cost of renting a virtual office

Package Rental (per month)
Standard USD 50
Advance USD 94

* In addition to the above costs, depending on the virtual office provider, business may have to pay additional service reservation fees to ensure office rental. This fee is usually equal to 2 times the monthly rental fee and will be refunded to the business after the lease term expires.

2.2  Cost of renting a fixed office

Rental City Ha Noi Ho Chi Minh Da Nang
Per m2/month Class A USD 40 – 50 USD 25 – 35 USD 20 – 35
Class B USD 16 – 30 USD 15 – 25 USD 9 – 25
Class C USD 10 – 15 USD 9 – 15 USD 6 – 14

2.3 Cost of renting land, factories, fees for using infrastructure, building offices/factories in industrial parks, high-tech zones

Type Unit Cost
Land rental m2/year USD 45 – 70
Factory rental m2/month USD 2.5 – 3.5
Infrastructure usage fee m2/year USD 0.3 – 0.5
Waste treatment fee m3 USD 0.25 – 0.55
Office construction m2 USD 300 – 400
Standard factory construction m2 USD 150 – 200

*The reference price list is based on the guidance of the Foreign Investment Agency.

3. Salary for employees

According to Vietnamese law, employers and employees can agree on salary in labor contract, however, the agreed salary must not be lower than the regional minimum salary promulgated by the Government.

Below is the minimum salary applicable from July 1, 2022, as stipulated in Decree No. 38/2022/ND-CP. Contact us for assistance in determining the minimum salary applicable to businesses based on location of operation.

Minimum salary Region I Region II Region III Region IV
Monthly USD 198.52 USD 176.46 USD 154.40 USD 137.86
Hourly USD 0.95 USD 0.85 USD 0.74 USD 0.66

4. Water price

According to Vietnamese law, water price bracket is regulated by the Ministry of Finance and decided by the Provincial People’s Committee to determine in detail. Below is the water price announced by Trung An Water Supply Joint Stock Company (water supplier) according to Decision No. 17/2021/QD-UBND dated June 1, 2021 of the People’s Committee of Ho Chi Minh City. This price is for reference only, applicable to water users provided by this unit in Ho Chi Minh City in 2023.

Place of use Price (per m3)
Household USD 0.36 – 0.78
Agency, union, administrative and non-business USD 0.70
Production unit USD 0.65
Business – service unit USD 1.15

* The above price includes VAT and is for reference only.

5. Electricity price

According to Vietnamese law, depending on the actual situation, the Ministry of Industry and Trade will adjust the electricity selling price accordingly. Below is the electricity price list issued under Decision No. 648/QD-BCT applied from March 20, 2019 for investors’ reference.

Place of use Price (per kWh)
Household USD 0.07 – 0.12
Agency, union, administrative and non-business USD 0.07 – 0.19
Production unit USD 0.04 – 0.13
Business – service unit USD 0.06 – 0.19

* The above price does not include VAT and is for reference only.

6. Tax – Accounting & Auditing Service

Besides business activities, businesses also need to make tax declarations in accordance with Vietnamese law with the issued tax identification numbers. This tax declaration is usually chosen by foreign investors in one of two forms: (1) Recruitment of accountants; (2) Using Tax – Accounting service. Below is a reference price list for Tax – Accounting service in Vietnam, according to information by Offshore Company Corp.

Package Fee (USD)
Package 1: File tax report monthly/ quarterly. USD 25/month
With amount of invoice from 10-20 invoices/months
Package 2: Make the task about tax report and accounting, bookkeeper/ draw balance sheet. USD 50
With amount of invoice from 10-30 invoices/monthsUSD 65/months with amount of invoices under 50 invoices/month*Special needs to be advised
Package 3: Draw a balance sheet USD 200


Above is our overview of the cost of starting a business in Vietnam. In order for the establishment of businesses to be effective, we recommend that foreign investors learn more about the regulations on entry to Vietnam and directly study and survey the market. We are willing and honored to assist foreign investors in accessing and establishing a business to invest in Vietnam.

Contact us if you need further advice.

Note: This article is for informational purposes only and it is not a legal advice. The content of the article represents its own of TTVN Legal, it subject to change without prior notice.