Vietnam Market Entry in 2026: What Has Changed and What Foreign SMEs Must Prepare for Now

Vietnam remains one of Asia’s most attractive destinations for foreign SMEs. However, entering the market in 2026 is not the same as it was even two or three years ago. Regulatory expectations are higher, operating costs are more transparent, and authorities increasingly expect foreign companies to run compliant, well-structured operations rather than informal setups.

For SMEs considering Vietnam, preparation is no longer optional. It is a competitive advantage.

Vietnam’s 2026 FDI Outlook: High-Tech and Green Growth

What Has Changed for Market Entry in Vietnam

1. Compliance is under closer scrutiny
   Vietnam continues to welcome foreign investment, but enforcement has become more consistent. Licensing, tax filings, labor contracts, and reporting obligations are monitored more closely than before. Companies that treat compliance as a formality often face delays, penalties, or operational disruptions within the first year.
2. Cost structures are clearer and less forgiving
   While Vietnam remains cost-competitive, wages, office rents, and professional service fees have increased steadily. Unrealistic budgets based on outdated assumptions often lead to cash flow pressure early on. SMEs now need realistic cost planning from day one.
3. Human resources challenges are more visible
   Hiring in Vietnam is no longer just about finding talent. Employment structures, social insurance, payroll compliance, and staff retention all require local expertise. Poor HR planning is one of the most common reasons foreign SMEs struggle after setup.
4. “Local partner” expectations have shifted
   Authorities increasingly expect foreign-owned companies to demonstrate real operational substance in Vietnam. Over-reliance on nominees or informal arrangements creates long-term risk, especially during audits or restructuring.

A Practical Framework for Entering Vietnam: From Market Insight to Execution

What Foreign SMEs Should Prepare Before Entering Vietnam

• A clear entry strategy
  Vietnam should be entered with a defined commercial purpose, not simply because it is “attractive.” Whether the goal is market access, sourcing, manufacturing, or regional expansion, the structure must match the strategy.
• A compliant operating model
  Company formation is only the first step. Accounting, tax, HR, and governance systems must be designed to function properly from the start.
• Realistic timelines and budgets
  Licensing, bank account opening, and initial hiring often take longer than expected. Buffer time and contingency planning are essential.
• On-the-ground advisory support
  Remote decision-making often leads to misunderstandings and delays. SMEs benefit significantly from having a trusted local advisor who understands both international expectations and Vietnamese realities.

A Practical Entry Readiness Checklist for 2026

• Defined business scope aligned with Vietnam regulations
• Realistic setup and operating budget
• Clear HR and payroll structure
• Tax and accounting framework in place
• Local advisory support beyond incorporation

Final Thought

Vietnam continues to offer strong opportunities for foreign SMEs, but success in 2026 depends on preparation, compliance, and execution. Companies that treat market entry as a strategic process, rather than an administrative task, are far better positioned to grow sustainably.

At GTI Partner, we work closely with foreign SMEs to support Vietnam market entry and long-term operations with practical, on-the-ground guidance.

Explore Our Vietnam Market Entry Packages