Is Vietnam the right market for your business?

Separate the export and domestic-market cases

Vietnam's export manufacturing base, international trade connections and developing domestic economy support several different investment theses. The 2025 investment-climate assessment also identifies constraints involving skills, infrastructure and regulatory implementation; these belong in the investment analysis alongside the opportunity. (2025 Vietnam investment climate)

An export project should be tested against customer concentration, input sourcing, logistics and product requirements. A domestic-market project should be tested against distribution, local competitors, purchasing behaviour and activity permissions. A services project should be tested against recruitment, management capacity, contracts and the ability to retain specialist staff.

Evaluate the whole production network

Export manufacturing can depend on imported inputs as well as access to overseas customers, so a location decision needs to consider both sides of the supply chain. The investment-climate report discusses Vietnam's links to external production networks and the associated operating environment. (2025 Vietnam investment climate)

Map critical suppliers, ports, transport routes, processing times and replacement options. Ask what happens if an input arrives late or a customer changes its sourcing requirements. Treat origin eligibility and trade preferences as separate questions for the actual product and supply chain, not benefits that automatically follow from incorporating in Vietnam.

Choose premises for execution, not incentives alone

Compare the availability of suitable staff, utilities, logistics, approved premises and room for expansion. Land and property diligence requires attention to the relevant rights and approvals rather than assuming the investor acquires unrestricted freehold ownership. (2025 Vietnam investment climate)

Before signing a long lease, obtain a written account of what the premises can lawfully accommodate and what additional approvals or works the proposed activity needs. Request operational evidence where it matters: power capacity, wastewater arrangements, transport access and the delivery date of infrastructure.

Use incentives as a sensitivity, not the business model

Vietnam's current corporate-tax incentives depend on qualifying sectors, locations and project conditions; the general industrial-zone incentive was removed under the new corporate-tax framework, with transitional issues requiring review. (PwC Vietnam tax incentives, PwC Vietnam corporate tax)

Model the project without incentives first, then add only relief whose eligibility and duration can be substantiated. Compare the result with a delayed-launch case and a higher-working-capital case. Read market access and tax incentives before treating an attractive location as an approved investment route.