Vietnam

Tax advantages

• Vietnam has a territorial tax system, taxing only income sourced within the country, with foreign-sourced income generally exempt for residents.
• Corporate income tax rate is 20%, one of the lowest in Southeast Asia, with incentives for high-tech and manufacturing sectors.
• Over 70 double tax treaties provide relief from double taxation, though information exchange is limited.
• No capital gains tax on securities for individuals, and no inheritance or gift tax.
• Personal income tax rates are progressive up to 35%, but foreign experts and high-skilled workers may qualify for reduced rates.

Tax disadvantages

• Tax authorities can access bank account information under the Law on Tax Administration, limiting financial privacy.
• Value-added tax (VAT) is 10% on most goods and services, with limited exemptions.
• Tax compliance can be bureaucratic, with frequent changes in regulations and inconsistent enforcement.

Residency advantages

• Investors can obtain a temporary residence card (1-5 years) via a business investment visa (DT1-DT4), renewable indefinitely.
• Long-term residency card (5-10 years) available for minimum capital contribution of VND 3 billion (approx. $130,000) in a local business.
• No minimum stay requirement to maintain residency status.
• Pathway to permanent residency after 3-5 years of continuous residence, though citizenship requires 5+ years and language proficiency.
• Strong international connectivity within Asia via Tan Son Nhat and Noi Bai airports.

Residency disadvantages

• No formal golden visa or residency-by-investment program; pathways rely on business investment or employment sponsorship, with no direct route to citizenship.
• Limited direct long-haul flights to Europe and the Americas, requiring connections.
• Legal system offers weak property rights protection; foreign ownership of land is prohibited (only long-term leases up to 50 years).

Living quality

Life in Vietnam offers a compelling mix of affordability and cultural richness. Major cities provide modern amenities, international schools, and a growing expat community, while rural areas offer natural beauty. Safety is generally high, though petty crime exists. The tropical climate varies from north to south, with a monsoon season. Infrastructure is improving, but traffic congestion and air pollution in Hanoi and Ho Chi Minh City remain concerns.

Best for

• Vietnam is best for HNWIs seeking a low-cost, high-growth environment for business expansion in manufacturing, technology, or trade. It suits those who value a vibrant lifestyle and regional travel convenience, but are not reliant on strong asset protection or financial privacy. Ideal for investors willing to navigate bureaucratic processes for residency tied to active business operations.