How to Expand Your Business from Singapore to Vietnam: A Practical Guide (2026)

Singapore and Vietnam have one of the most dynamic bilateral economic relationships in Southeast Asia. Singapore is consistently among Vietnam's top three foreign investors (Source: Singapore EDB — Vietnam Market Profile), and the two countries elevated their ties to a Comprehensive Strategic Partnership in 2024 (Source: Singapore MFA, August 2024). For businesses already established in Singapore, Vietnam represents a compelling next step: a market of 98 million people, a rapidly growing middle class, and a manufacturing and services sector that is increasingly integrated with global supply chains.

Why Singapore Companies Expand to Vietnam

Cost arbitrage: Singapore's operating costs — particularly for manufacturing, logistics, and labour-intensive operations — are significantly higher than Vietnam's. Many Singapore-based companies establish Vietnam operations to access lower-cost production while maintaining their Singapore headquarters for finance, management, and client-facing functions.

Market access: Vietnam's domestic consumer market is growing rapidly, with a middle class expected to reach 26 million households by 2030 (Source: McKinsey Global Institute — Southeast Asia's Ascent, 2024). Singapore companies in retail, F&B, technology, and professional services are entering Vietnam to capture this growth.

Supply chain diversification: The global shift away from China-centric supply chains has accelerated Vietnam's emergence as a manufacturing hub. Singapore companies in electronics, textiles, and industrial goods are establishing Vietnam production facilities to serve global customers.

Legal Structures for Singapore Companies Entering Vietnam

100% Foreign-Owned Enterprise (FOE)

The most common structure for Singapore companies entering Vietnam is the 100% Foreign-Owned Enterprise. Under this structure, the Singapore parent company owns 100% of the Vietnamese subsidiary. This provides full control over operations, profits, and strategic direction.

Joint Venture

A joint venture with a Vietnamese partner can accelerate market entry by leveraging local relationships, regulatory knowledge, and distribution networks. However, joint ventures require careful structuring of governance, profit-sharing, and exit provisions.

Representative Office

A representative office allows a Singapore company to establish a presence in Vietnam for market research, liaison, and promotional activities — but it cannot conduct direct commercial activities or generate revenue in Vietnam.

The Expansion Process: Step by Step

Step 1: Pre-Entry Assessment. Before beginning the legal process, conduct a thorough assessment of the Vietnamese market for your specific business. This includes regulatory analysis, competitive landscape mapping, cost structure modelling, and identification of potential local partners or key hires.

Step 2: Choose Your Province or City. Ho Chi Minh City (HCMC) is the commercial capital and the preferred location for most service businesses, technology companies, and consumer-facing operations. Hanoi is the political capital and the preferred location for businesses that require close engagement with central government agencies.

Step 3: Obtain the Investment Registration Certificate (IRC). The IRC is issued by the Department of Planning and Investment (DPI) in the province where your company will be located. Processing time for the IRC is typically 15 working days for standard cases.

Step 4: Obtain the Enterprise Registration Certificate (ERC). Once the IRC is issued, you apply for the ERC from the Business Registration Office. Processing typically takes three to five working days.

Step 5: Post-Registration Compliance. After obtaining the IRC and ERC, you must complete several post-registration steps: opening a corporate bank account, registering for tax, registering for social insurance, and obtaining sector-specific business licences if required.

Key Regulatory Considerations

Foreign Ownership Restrictions

Vietnam maintains a list of sectors where foreign ownership is restricted or prohibited. The most significant restrictions apply to media, broadcasting, certain financial services, real estate, and some retail activities.

Tax Structure

The Singapore-Vietnam Holding Structure

Many experienced cross-border operators use a Singapore holding company structure to manage their Vietnam operations. Under this structure, the Singapore entity holds the shares of the Vietnamese subsidiary, providing access to Singapore's extensive DTA network for efficient profit repatriation.

Conclusion

Expanding from Singapore to Vietnam is one of the most strategically logical moves available to Singapore-based businesses. The two markets are complementary, the bilateral relationship is strong, and the regulatory pathway — while more complex than Singapore's — is well-established.

Read our related guides: Vietnam vs Singapore: Where Should You Expand? and Can Foreigners Own a Company in Vietnam?.

--- *Royce Consulting works with Singapore-based businesses planning Vietnam expansion — from pre-entry market assessment and legal structure advice through to IRC and ERC registration support. Contact us to discuss your expansion timeline.*