Vietnam’s FDI Growth and Regulatory Environment
Vietnam has become one of Southeast Asia’s top destinations for foreign direct investment (FDI), attracting US$28.54 billion in the first nine months of 2025—a 15.2% year-on-year increase—with US$18.8 billion disbursed, the highest in five years. Total FDI stock reached US$322 billion by end-2024, nearly two-thirds of the country’s GDP. This thriving economy, powered by a young workforce, strategic location, and free trade agreements, offers strong opportunities for SMEs expanding into Vietnam.
However, the regulatory environment is complex and rapidly evolving, making tax and compliance services essential for foreign investors. New rules like Decree 69/2024/ND-CP require digital corporate IDs (e-ID) from July 1, 2025, while e-invoicing and e-tax filing have become mandatory. These reforms reflect Vietnam’s drive toward digitalization and stricter compliance standards aligned with global norms.
For foreign investors, this means Vietnam’s business landscape is attractive but demanding. Bureaucracy, overlapping laws, and frequent legal updates can cause confusion, and missing a filing or misunderstanding a rule may result in fines or license revocation. Partnering with professional tax and compliance services providers ensures foreign businesses navigate Vietnam’s regulations confidently—staying fully compliant while focusing on growth.
Learn how InCorp Vietnam are guiding clients through changes in tax laws in our article “A Complete Guide to Draft Corporate Income Tax Law in Vietnam.”
Why Tax and Compliance Services Matter for Foreign SMEs
Entering a new market like Vietnam without local tax and compliance expertise is risky. Foreign businesses that try to handle all regulatory matters in-house often encounter pitfalls that can be costly. Here are some key reasons why engaging tax and compliance services is essential for foreign SMEs investing in Vietnam:
Complex, Evolving Regulations:
Vietnam’s legal framework is frequently updated, and laws often overlap across ministries. Without expert guidance, foreign investors risk confusion and costly delays. Professional tax and compliance services providers track every decree and circular—especially those impacting tax, accounting, and licensing—so your business remains compliant amid constant regulatory change.
Strict Tax Filing Obligations:
Vietnam enforces a demanding schedule of tax filings—monthly VAT by the 20th, quarterly CIT reports, and annual financial statements. Deadlines are strict, documents must be in Vietnamese, and late filings can mean fines up to 20% of the tax due. Reliable tax and compliance services providers handle these submissions accurately and on time, protecting your company from penalties and ensuring peace of mind.
Avoiding Legal and Financial Pitfalls:
Foreign SMEs often miss key local nuances such as which sectors need special licenses or how to manage transfer pricing properly. Non-compliance can lead to surprise audits, back taxes, or suspended operations. Skilled tax and compliance services firms help you structure investments correctly, maintain documentation, and stay audit-ready, reducing risk while ensuring regulatory compliance.
Language and Cultural Barriers:
All official communication with Vietnamese authorities must be in Vietnamese. For foreign managers, this creates risks of misinterpretation. Local tax and compliance services providers offer bilingual support—bridging cultural and linguistic gaps to ensure your compliance tasks are professionally handled from start to finish.
Strategic Tax Planning and Incentives:
Vietnam offers numerous incentives—such as preferential CIT rates and tax holidays for high-tech or priority sectors—but qualification requires precise compliance. Expert tax and compliance services help identify available incentives, prepare supporting documentation, and design efficient tax structures within legal limits. This allows SMEs to optimize their tax position while remaining fully compliant.
Focus on Core Business:
By outsourcing accounting, reporting, and licensing tasks to trusted specialists, SMEs can focus on growth instead of red tape. Partnering with a professional tax and compliance services firm is often more cost-effective than managing compliance internally—and ensures your business runs smoothly without regulatory surprises.
In summary, tax and compliance services are the backbone that supports a successful FDI venture in Vietnam. They ensure you start on solid footing – obtaining all necessary registrations and licenses – and stay on track with ongoing obligations. As one expert guide noted, maintaining good compliance from day one and leveraging local professional services is critical to operating confidently in Vietnam’s dynamic market. The next step is choosing the right partner to trust with these important tasks.
Discover how our Accounting & Bookkeeping Services help SMEs and FDIs stay compliant while reducing costs.
Leading Tax and Compliance Service Providers in Vietnam
Fortunately, Vietnam has a number of reputable firms that specialize in helping foreign investors (especially SMEs) manage their tax and compliance needs. These providers range from global accounting giants to boutique consultancies and law firms. Below, we highlight five of the most reliable firms offering tax and compliance services in Vietnam – including their strengths, areas of specialization, and ideal client fit:
InCorp Vietnam – Regional Corporate Services Powerhouse.
InCorp Vietnam is the local arm of InCorp Group, a major Asia-Pacific corporate solutions provider. With over 30 years of regional experience, 1,500+ professionals, and more than 20,000 international clients served, InCorp brings deep expertise to the Vietnam market. The firm offers end-to-end support for market entry and ongoing compliance – company incorporation, licensing, accounting, tax filing, payroll, and secretarial services under one roof. InCorp is lauded for its strong regulatory knowledge and efficient execution, making it a preferred choice for foreign SMEs entering Vietnam.
Its client-centric approach and bilingual team help demystify Vietnam’s bureaucracy for newcomers. InCorp Vietnam is especially well-suited for small and mid-sized investors who want a one-stop service provider to handle everything from initial company setup to continuous tax and compliance management. By leveraging InCorp’s expertise, investors can ensure they meet all local compliance requirements while focusing on their core business. (InCorp’s professionals are also adept at guiding clients through new regulations – for example, assisting companies to comply with the 2025 e-ID registration mandate and updated tax rules.)
Dezan Shira & Associates – Pan-Asia Advisory Firm with Local Depth
Operating in Vietnam since 2008, Dezan Shira & Associates (DSA) provides integrated tax and compliance services, accounting, legal, and HR support from offices in Ho Chi Minh City, Hanoi, and Da Nang. Known for its regional perspective and deep local expertise, DSA supports foreign investors with entity setup, accounting outsourcing, tax advisory, and audit assistance. The firm’s strength lies in handling complex cases—such as transfer pricing, cross-border tax planning, and compliance with Vietnamese Accounting Standards. Ideal for SMEs and corporates alike, DSA is a trusted one-stop partner for businesses seeking reliable, strategic tax and compliance services across Asia.
PwC Vietnam – Global Expertise for Complex Needs
As one of the Big Four, PwC Vietnam delivers world-class tax and compliance services for large FDIs and multinational corporations. Established in the 1990s, PwC offers a full range of audit, advisory, and legal solutions, with specialized teams for Japanese, Korean, and European clients. PwC’s tax advisory practice is renowned for its transfer pricing expertise, M&A due diligence, and insights on double taxation and IFRS adoption. While its premium cost may exceed SME budgets, PwC remains the go-to choice for complex, high-value investments requiring global compliance standards and advanced tax and compliance services.
Viet An Law – Trusted Local Tax & Compliance Agent
With nearly two decades of experience, Viet An Law is a licensed Vietnamese law firm and tax agent providing practical, end-to-end tax and compliance services for foreign SMEs. Its offerings include tax registration, accounting setup, payroll tax management, and representation before tax authorities. Viet An is highly regarded for hands-on compliance support—preparing filings, managing bookkeeping, and advising on sector-specific taxes like VAT and special consumption tax. For newly established FDIs seeking affordable, reliable local expertise, Viet An Law serves as a strong partner ensuring smooth, ongoing tax and compliance operations.
Emerhub Vietnam – SME-Focused Market Entry Specialist
Emerhub simplifies market entry and tax and compliance services for startups and SMEs in Southeast Asia. Its Vietnam team offers incorporation, tax compliance, payroll, and HR outsourcing with a “compliance-first” approach. Leveraging digital tools for transparency and speed, Emerhub supports remote founders and distributed teams with bilingual communication and proactive updates on legal changes. Ideal for tech-driven or smaller investors, Emerhub combines efficiency, flexibility, and personalized service to keep businesses compliant from setup to scale-up.
Each of these firms brings something different to the table. InCorp and Emerhub offer broad one-stop solutions tailored to SMEs and newcomers, taking care of everything from formation to ongoing compliance. Dezan Shira provides a wide-angle view with multi-country experience – useful if you plan to expand regionally or need higher-level advisory in addition to compliance services. Big Four firms like PwC deliver deep technical expertise and are well-suited for large, complex investments or when absolute rigor is needed (albeit at higher cost). Meanwhile, local specialists like Viet An Law act as affordable yet highly knowledgeable partners for outsourcing your tax and compliance services on the ground.
Succeeding in Vietnam with the Right Support
Investing in Vietnam offers tremendous upside for foreign SMEs – access to a growing market, cost-efficient production, and numerous growth sectors. But without proper tax and compliance services in place, that upside can quickly be eroded by regulatory troubles or costly mistakes. The key takeaway for investors is that compliance is not just a bureaucratic hurdle, but a critical success factor in Vietnam. Engaging a reliable firm to handle your accounting, tax filings, and legal compliance is an investment in the longevity of your venture.
It means you can operate with confidence, knowing your business meets all local obligations and is structured optimally within Vietnam’s legal framework. As the statistics show, Vietnam will continue to attract robust FDI inflows – and the government will likewise continue refining the rules for businesses. With the guidance of experienced tax and compliance professionals, foreign SMEs can navigate these changes adeptly and focus on what they do best. In short, by partnering with the right service provider (such as one of the trusted firms highlighted above), an investor in Vietnam can mitigate risks, capitalize on incentives, and build a thriving operation in this dynamic market – all while staying fully compliant with the law.
