Can Digital Nomads Start a Business in Vietnam? What You Need to Know

Plenty of remote workers land in Vietnam, fall for the pace of life, and start wondering whether they could build something here. The trouble in 2026 is that Vietnam still has no dedicated digital nomad visa, and online advice is a mix of outdated forum posts and agency sales pages. Local government has also been reorganised since 2025, so some old guidance names offices that no longer exist. This guide separates what is legal, what is risky, and what it costs.

The Honest Short Answer: Yes, But Not as a “Nomad”

Foreigners can own 100% of a Vietnamese company in most sectors. Nothing in the law stops a digital nomad from becoming a business owner. What the law does not recognise is the nomad lifestyle itself. You cannot arrive on a tourist visa, start trading, and build a company on the side.

Two things get mixed up constantly:

• Working remotely for a foreign employer or clients while living in Vietnam. This sits in a grey zone with no specific visa category.
• Running a business in Vietnam, meaning a Vietnamese legal entity that invoices, hires, and pays tax locally. This is fully legal but comes with a formal process.

If you only want to keep your existing remote income, you do not need a Vietnamese company at all. If you want to sell to Vietnamese customers, hire locally, or open a physical operation, you do.

Which Visa Fits a Founder

The visa you hold when you start matters, because immigration rules are tied to what you actually do.

Tourist or e-visa

The e-visa allows stays of up to 90 days, single or multiple entry, and costs about US$25 for single entry or US$50 for multiple entry. Citizens of around a dozen countries can also enter visa-free for 45 days. Check the current list for your nationality, because it has been extended and expanded more than once. These entries are for tourism and short visits. They do not authorise you to operate a business, even if you are only exploring.

Business visas (DN)

DN visas are issued when a Vietnamese organisation sponsors you for business activity. They suit meetings, contracts, and short-term work with a local partner. They are not a path to long-term residence on their own.

Investor visas (DT1 to DT4)

Once you have invested in a Vietnamese company, you can apply for an investor visa. The category depends on your capital contribution:

• DT1: VND 100 billion or more
• DT2: VND 50 to 100 billion
• DT3: VND 3 to 50 billion (about US$115,000 and above)
• DT4: under VND 3 billion

Most solo founders and small teams fall into DT4 or DT3. A temporary residence card (TRC) can follow, with validity ranging from one to several years depending on the category. Rules shift between categories, so confirm the current term with your agent before you plan around it.

How to Set Up a Company in 2026

A foreign-owned company here is usually a limited liability company (LLC). The process has three main stages, and each has its own paperwork.

1. Prepare documents. You need a passport, proof of address, and proof of financial capacity, such as a bank statement. Documents issued abroad generally need consular legalisation and certified Vietnamese translation. Vietnam does not widely accept apostilles, so allow time for this step.
2. Investment Registration Certificate (IRC). This confirms your right to invest. It is filed with the provincial authority. Since the 2025 provincial mergers and the restructuring of local departments, planning and investment functions now sit under a Department of Finance in many provinces. Confirm the right office before submitting anything.
3. Enterprise Registration Certificate (ERC). This is the company’s official birth certificate. After you receive it, you get a tax code, order company seals, set up e-invoicing, and open a bank account.

You must also open a Direct Investment Capital Account (DICA) at a Vietnamese bank. Your registered capital goes through this account, and you generally must contribute it within 90 days of receiving the ERC. Legal timelines are about 15 working days for the IRC and 3 working days for the ERC. In practice, expect 4 to 8 weeks including document legalisation.

You will need a registered business address. Apartments designated for residential use often cannot be used as a company address, so most founders rent a commercial space or a virtual office with a proper lease. Bring printed copies of everything, even if the process is meant to be online.

Work Permits and the VND 3 Billion Rule

Owning a company does not automatically give you the right to work in it. Foreign workers normally need a work permit, but owners and board chairs who meet a capital threshold can be exempt.

The key figure is VND 3 billion. If you are an owner or capital-contributing member of an LLC, or the chair of a joint-stock company’s board, with a capital contribution of at least that amount, you can generally apply for a work permit exemption instead of a full permit. You still need to file for the exemption confirmation, so it is not paperwork-free.

Below that threshold, you are usually treated as a manager, executive, expert, or technician and need a work permit. That typically requires:

• A criminal record check from your home country, legalised for use in Vietnam
• A health check certificate
• Proof of qualifications and relevant experience, commonly a degree plus several years of work history
• Employer sponsorship documents from your own company

Processing usually takes one to three months. Many founders put in VND 3 billion for this reason alone, as it saves months of paperwork. Others choose a lower capital level and accept the permit process. That is a real trade-off, so decide it before you register, not after.

2026 Budget Reality

These are ballpark figures at roughly VND 26,000 per US$1. Agency quotes vary a lot, so ask for itemised pricing.

Budget tier (lean setup, smaller city, minimal capital)

• Agency setup fee: VND 20–35 million (about US$770–1,350)
• Registered capital: VND 300–500 million (about US$11,500–19,000)
• Monthly accountant: VND 1.5–2.5 million (about US$60–95)
• Virtual office address: VND 500,000–1 million a month (about US$20–40)
• One-bedroom apartment: VND 8–12 million a month (about US$310–460)
• International health insurance: about US$50–80 a month

Mid-range tier

• Agency or small law firm: VND 40–60 million (about US$1,500–2,300)
• Registered capital: VND 1–2 billion (about US$38,000–77,000)
• Monthly accountant: VND 3–5 million (about US$115–190)
• One-bedroom apartment in Hanoi or Ho Chi Minh City: VND 14–22 million a month (about US$540–850)
• International health insurance: about US$100–150 a month

Comfortable tier

• Law firm handling IRC, ERC, work permit exemption and TRC: VND 80–150 million (about US$3,100–5,800)
• Registered capital: VND 3 billion or more (about US$115,000+)
• Monthly accountant and compliance: VND 6–10 million (about US$230–385)
• Serviced apartment: VND 25–45 million a month (about US$960–1,730)
• Comprehensive international health insurance: about US$200–350 a month

Do not forget ongoing costs that are easy to overlook: bank fees, e-invoice software, and the annual audit that foreign-invested companies are required to arrange. Capital is not a fee, but it must sit in your account, so budget for it as locked-up money.

Tax and Compliance After Launch

Registering is the easy part. Once your company exists, it has obligations whether or not it earns a dong.

• Corporate income tax: the standard rate is 20%. Recent reforms have introduced lower rates for smaller companies, so ask your accountant what applies to your revenue band in 2026.
• VAT: most goods and services carry 10% VAT, though temporary reductions have been used on some categories. Your accountant will confirm the current rate.
• Personal income tax: if you spend 183 days or more in Vietnam in a tax year, you are generally a tax resident, taxed on worldwide income at progressive rates up to 35%. Non-residents are taxed on Vietnam-sourced income. Check your home country’s treaty with Vietnam.
• E-invoicing: mandatory for businesses. Every sale needs a compliant electronic invoice.
• Periodic filings: tax returns, financial statements, and social insurance reports for staff, including any foreign employees with a work permit.

Missing a deadline brings fines, and unresolved filings can block you from leaving the company structure cleanly later. Hire a local accountant from day one. Keep your own records tidy, because the human who reads your documents at the tax office will expect them in Vietnamese or properly translated.

Shortcuts That Backfire

You will hear about workarounds. Most of them create bigger problems than they solve.

Nominee ownership

Some people put a Vietnamese friend’s name on the company to avoid foreign-investor steps. You then have no legal ownership. If your partner decides to keep the company, you have little recourse. Courts can treat such arrangements as invalid, and you lose both money and control.

Household business registration

The simple ho kinh doanh (household business) format is for Vietnamese citizens. Foreigners cannot use it, no matter what a friendly shopkeeper tells you.

Restricted sectors

Not every field is open. Education, travel services, media, logistics, financial services, and some trading activities carry conditions or caps on foreign ownership, depending on Vietnam’s trade commitments. Check your exact business line before you design your structure. A line that looks harmless, such as running tours or opening a language centre, may need extra licences.

Doing business on a tourist visa

Meeting clients, signing deals, or taking payments for a Vietnam-based operation while on a tourist visa can lead to fines, deportation, and entry bans. Enforcement varies, but the legal risk is real.

Lean Alternatives to a Vietnamese Company

Many remote workers who ask this question do not actually need a local entity. Consider these before committing capital:

• Keep your home-country company. If your clients are abroad and paid abroad, many people stay structured this way. Understand that this is a grey area legally for Vietnam, and your tax residence may still change if you stay over 183 days.
• Partner with a Vietnamese company. A local firm can employ or contract you, while you provide services. This can fit short-term projects.
• Use a representative office. For companies that already exist abroad, a rep office allows liaison and market research, but not direct income-generating activity.
• Start with a business visa. If you are exploring a deal, a DN visa sponsored by a local partner is cleaner than overstaying on a tourist stamp.

The right option depends on whether your customers, staff, and income are in Vietnam or abroad. If most of that is abroad, a local company often adds cost without much benefit.

Frequently Asked Questions

Can a foreigner own 100% of a company in Vietnam?

Yes, in most sectors. Foreigners can establish a wholly foreign-owned LLC. Some industries, including education, media, and certain services, have ownership limits or special licences. Check your specific business line before registering, since it affects both your structure and your timeline.

Can I run a business in Vietnam on a tourist visa?

No. A tourist or e-visa does not authorise business activity. Exploring the market and meeting people is usually tolerated, but operating, signing contracts, or earning money locally is not. If you plan to start a company, move to an investor or business visa once you have the paperwork.

How much money do I need to open a company in Vietnam?

Most sectors have no legal minimum capital, but you must declare a figure and contribute it within 90 days. Many founders choose VND 300 million to 3 billion (about US$11,500–115,000). VND 3 billion is the key threshold for the work permit exemption and DT3 investor visa.

Does Vietnam have a digital nomad visa in 2026?

Not as of early 2026. Vietnam has discussed remote-work visas, but nothing specific has been launched. Most remote workers use e-visas or visa-exempt entry, with all the limits that carry. Check the immigration authority’s current rules before travelling, since policy could change.

How long does it take to register a company in Vietnam?

The legal timelines are around 15 working days for the Investment Registration Certificate and 3 working days for the Enterprise Registration Certificate. Realistically, plan for 4 to 8 weeks, longer if you add work permits or residence card applications. Document legalisation abroad often takes the most time.

📷 Featured image by Jean Carlo Emer on Unsplash.