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Introduction
Entrepreneurs and investors often face a tough decision when choosing the ideal location to set up their businesses in Asia. Both Singapore and Vietnam offer unique advantages, making the choice particularly challenging. Singapore is renowned for its competitive business environment, high quality of life, and cost-effectiveness for smaller businesses. On the other hand, Vietnam is emerging as a dynamic hub with rapid economic growth and an affordable labor market. This article provides a comprehensive comparison to help you make an informed decision about incorporating a company in Singapore or in Vietnam.
Vietnam provides tax incentives for businesses in high-tech, renewable energy, and export-oriented sectors. The country is also expanding its network of DTAAs to attract foreign investment.
Here’s a quick overview of the key differences for easy reference:
| Factor | Singapore | Vietnam |
|---|---|---|
| Business Environment | Highly stable and supportive | Developing but improving |
| Corporate Tax Rate | 17%, various incentives | 20%, incentives for specific sectors |
| Capital Gains Tax | None | Applicable |
| Labor Market | Highly skilled; higher labor costs | Young, cost-effective workforce |
| Ease of Incorporation | Seamless and digitalized | More complex |
| Infrastructure | World-class; excellent connectivity | Developing; significant investments underway |
| Business Costs | Moderate | Low |
| Market Access | Global connectivity | Regional connectivity |
Choosing between Singapore and Vietnam depends on your business priorities:
Both countries offer unique advantages, and businesses may consider a dual strategy to leverage Singapore’s global connectivity and Vietnam’s manufacturing capabilities.
Whether you’re planning to establish a regional headquarters, expand operations, or simply incorporate a company in one of Asia’s most competitive economies, Singapore offers unmatched advantages—from a pro-business regulatory environment to extensive global connectivity. However, navigating incorporation procedures, tax frameworks, and compliance nuances can be complex without the right partner.
That’s where 3E Accounting comes in. With years of proven expertise, we simplify the journey for entrepreneurs, SMEs, and multinational clients alike. From seamless company registration to ongoing compliance and accounting support, we offer end-to-end business solutions that help you start strong and grow confidently.
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Singapore offers stronger legal frameworks, easier incorporation, world-class infrastructure, and lower corruption levels. Vietnam is cost-effective and ideal for labor-intensive industries. Choose based on your business model and long-term goals.
Singapore has a flat corporate tax rate of 17% with attractive exemptions, no dividend tax, and GST at 9% (from Jan 2024). Vietnam has a 20% corporate tax rate, with added complexities in VAT, CIT, and Foreign Contractor Tax.
Singapore ranks higher in the World Bank’s Ease of Doing Business index due to digital processes, shorter registration timelines, and pro-investor policies. Vietnam has improved, but still lags in regulatory efficiency and bureaucratic processes.
Yes, foreigners can own 100% of companies in both countries. However, Singapore allows full ownership across more industries without local shareholder requirements. Vietnam often requires local partners in restricted sectors.
Singapore offers political stability, global banking access, advanced infrastructure, and strong IP protection. It’s preferred by global MNCs for strategic operations, regional HQs, and fintech/startup ecosystems.
Abigail Yu
Author
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.
