Finance and Investment

-Vietnam-

"Kiên nhẫn" - (PATIENCE)

Vietnam expat guide to banking, investment, and income generation Finance opportunities for expats in Vietnam covering investments and remote work

Banking and Money Management

Setting Up Bank Accounts:
Expats in Vietnam can open bank accounts at major banks like Vietcombank, BIDV, or Techcombank. The typical requirements for opening an account include:

  • A valid passport.

  • A Vietnamese visa (tourist, work, or long-stay visa).

  • Some banks may request a residence card or work permit.

Accessing Financial Services:
Expats can take advantage of several financial services in Vietnam:

  • Online banking and mobile banking apps are available for easy account management and bill payments.

  • For international transfers, services like SWIFT are widely used, although fees can vary significantly between banks.

  • ATM networks are extensive in cities, but foreign cards may face higher fees, especially for international withdrawals.

Currency Exchange and Fee Management:
To manage currency exchange and minimize fees:

  • Use licensed currency exchange providers (found at banks or in major cities) for better rates than smaller, informal exchange services.

  • Consider opening a multi-currency account if you frequently deal with different currencies.

  • Use domestic ATMs tied to your bank to avoid excessive fees and international withdrawal charges.

For more detailed guidance on banking and financial management in Vietnam, [click here].

Investing in Local Market

Real Estate Investment:
Foreigners are not allowed to own land in Vietnam, but they can own condominiums. Expats can own up to 30% of the units in a condominium project or a 50-year lease on a property. Land leases are another common option for those interested in property investment.

Stocks and Businesses:
Vietnam’s Ho Chi Minh Stock Exchange (HOSE) allows foreign investors to trade stocks, though restrictions apply to certain sectors like banking and defense. Popular industries for stock investments include technology, construction, and manufacturing.

  • Starting a business in Vietnam often requires a Vietnamese partner for sectors not wholly open to foreign investment. However, 100% foreign-owned businesses are allowed in export-oriented industries or through BOI-promoted sectors.

Foreign Ownership Restrictions:
Foreign investors face limitations on ownership in specific industries. For example:

  • 30% limit on condominium ownership.

  • Higher restrictions on owning land or strategic assets. Expats often form joint ventures with local partners to navigate these restrictions.

Local Investment Opportunities and Returns:
Vietnam’s rapidly growing economy offers lucrative opportunities in real estate development, technology, tourism, and manufacturing. Real estate in major cities like Hanoi or Ho Chi Minh City provides good rental yields, while stocks in sectors such as agriculture and telecommunications have shown consistent growth.

For detailed investment strategies and legal considerations for investing in Vietnam, [click here].

Income Opportunities

Generating Income Legally:
Expats can generate income in Vietnam through remote work, freelancing, or setting up local businesses. It’s essential to comply with local regulations, including securing the appropriate visa and work permits.

Remote Work and Freelancing:
Vietnam is a popular destination for digital nomads and remote workers due to its growing tech infrastructure and affordable cost of living. Expats can engage in remote work for foreign companies or freelance in fields like IT, design, marketing, and writing.

  • Working remotely on a tourist visa is possible for foreign clients, but expats should avoid working for Vietnamese companies without the correct permits.

  • Freelancing platforms like Upwork and Fiverr are frequently used by expats looking to offer services internationally.

Setting Up Local Businesses:
Expats can start businesses in Vietnam, especially in industries like tourism, hospitality, and technology. However, some sectors require a Vietnamese partner for ownership or investment.

  • Wholly foreign-owned enterprises (WFOEs) are allowed in export-oriented industries or BOI-promoted sectors, allowing for 100% foreign ownership.

  • Key sectors include manufacturing, real estate development, and agriculture.

Legal and Tax Implications:

  • Expats who work or run businesses in Vietnam must secure a work permit or an investment visa for legal compliance.

  • Income is subject to progressive income tax rates from 5% to 35%. It’s crucial for expats to understand the local tax system and whether they’re covered by double taxation agreements to avoid paying taxes twice on foreign-earned income.

For a full guide on income generation and tax strategies in Vietnam, [click here].