Why Vietnamese Business Owners Should Set Up a Singapore Company

Introduction

In recent years, more Vietnamese entrepreneurs have been looking beyond their domestic market to expand into global trade, investment, and partnerships. Among the many international business hubs available, Singapore has emerged as a leading choice. Strategically located in Southeast Asia, Singapore offers a combination of political stability, business-friendly regulations, a robust financial system, and a strong reputation for ease of doing business.

For Vietnamese business owners aiming to scale internationally, setting up a company in Singapore is not just a strategic move—it can be a game changer. This article will explore why Singapore is the preferred destination, the specific benefits for Vietnamese companies, and practical steps for making the transition.

1. Strategic Geographical Location

Singapore’s location in the heart of Southeast Asia positions it as a gateway to global markets. For Vietnamese companies, this means:

• Proximity to Vietnam – just a short flight away, making it convenient for business travel.

• Access to ASEAN Markets – Singapore is part of the ASEAN Economic Community (AEC), providing preferential trade agreements with member countries.

• Connectivity to Global Markets – With one of the busiest ports and airports in the world, Singapore enables efficient import/export operations.

This geographical advantage allows Vietnamese businesses to manage regional operations while tapping into international markets more easily.

2. World-Class Business Infrastructure

Singapore consistently ranks among the top countries for ease of doing business. The infrastructure benefits Vietnamese business owners by providing:

• Efficient Company Registration – Incorporation can often be completed within 1–2 days.

• Advanced Banking System – Access to international banks, multi-currency accounts, and trade finance options.

• Modern Digital Ecosystem – High-speed internet, reliable cloud services, and e-government platforms that reduce paperwork.

Vietnamese businesses in manufacturing, technology, trading, and services can all leverage Singapore’s business infrastructure to operate more effectively and attract global partners.

3. Attractive Corporate Tax Structure

Singapore’s corporate tax system is one of the most competitive in the world. Key advantages include:

• Low Corporate Tax Rate – Capped at 17%, with partial tax exemptions for new companies.

• No Capital Gains Tax – Profits from the sale of investments or assets are tax-free.

• Extensive Double Taxation Agreements (DTAs) – Singapore has DTAs with over 80 countries, including Vietnam, ensuring profits aren’t taxed twice.

For Vietnamese business owners, incorporating in Singapore can lead to significant tax savings and improved profitability, especially for businesses trading across borders.

4. International Reputation and Credibility

Singapore has a strong global reputation for transparency, rule of law, and low corruption. This credibility can be particularly valuable for Vietnamese companies that:

• Seek International Clients or Investors – Many investors prefer dealing with Singapore-incorporated companies due to strong corporate governance.

• Want to Build Brand Trust – Having a Singapore registered address can enhance brand image in competitive industries.

• Need Better Payment Processing – Singapore companies often face fewer restrictions in opening accounts with global payment processors and financial institutions.
  

5. Access to Global Financing and Investors

Raising capital can be easier for Singapore-incorporated entities. Benefits include:

• Vibrant Venture Capital Scene – Singapore is home to many venture capitalists, angel investors, and private equity firms.

• Government Grants and Support – Initiatives like Enterprise Singapore provide funding and resources for innovation and internationalisation.

• Global Banking Services – Access to multi-currency facilities, trade finance, and international credit lines.

For Vietnamese startups and SMEs aiming for rapid growth, setting up in Singapore can open doors to funding that might not be as accessible domestically.

6. Strong Intellectual Property (IP) Protection

For tech, creative, and innovative businesses, Singapore offers:

• Robust IP Laws – Ranked among the top in Asia for IP protection.

• Easy IP Registration – Straightforward processes for patents, trademarks, and copyrights.

• International Recognition – IP registered in Singapore is often recognised in multiple jurisdictions.

Vietnamese companies in software development, design, or manufacturing can protect innovations more effectively through a Singapore company.

7. Simplified Cross-Border Trading

Singapore’s free trade agreements and logistics infrastructure make it an ideal base for trading companies:

• FTAs with Major Economies – Including the EU, China, Australia, and the US.

• Top Logistics Hub – Efficient ports and airports reduce shipment delays and costs.

• Reduced Tariffs – Beneficial for Vietnamese exporters and importers.

This is especially relevant for Vietnamese businesses in textiles, electronics, seafood, and agricultural exports.

8. Political and Economic Stability

Singapore’s political neutrality, strong governance, and prudent economic policies provide a secure environment for businesses. Unlike markets with volatile regulations, Singapore offers:

• Predictable Policies – Business regulations are stable and transparent.

• Stable Currency – The Singapore Dollar (SGD) is strong and widely accepted in trade.

• Safe Environment – Low crime rates and a strong legal framework.

Vietnamese business owners seeking a safe base for long-term investments will find Singapore highly attractive.

9. Bilingual and Skilled Workforce

English is the main business language in Singapore, removing communication barriers for international trade. Additionally:

• Highly Skilled Professionals – Singapore attracts global talent in finance, technology, and engineering.

• Bilingual Advantage – Many Singaporeans speak multiple languages, useful for regional business.

• Ease of Hiring Foreign Talent – Through the Employment Pass and S Pass schemes.

Vietnamese companies can tap into this talent pool for management, finance, marketing, and technical roles.

10. Ease of Remote Management

A Vietnamese business owner doesn’t need to be based in Singapore full-time to operate a company there. Options include:

• Appointing a Local Nominee Director – Required by law for incorporation.

• Using Professional Corporate Services – To handle compliance, accounting, and tax matters.

• Virtual Offices and Co-Working Spaces – Maintain a Singapore business address without heavy overheads.

This flexibility makes it feasible to operate from Vietnam while benefiting from a Singapore company’s advantages.

11. Potential Business Structures for Vietnamese Entrepreneurs

The most common and advantageous structure is the Private Limited Company:

• Separate legal entity from owners.

• Limited liability protection.

• Tax incentives and credibility.Other options include:

• Branch Office – Suitable for established Vietnamese companies expanding into Singapore.

• Representative Office – For market research and networking without revenue generation.
  

12. Steps to Set Up a Singapore Company as a Vietnamese Business Owner

1. Decide on the Business Structure – Private Limited Company is most common.

2. Choose a Company Name – Must be approved by ACRA (Accounting and Corporate Regulatory Authority).

3. Appoint a Local Director – At least one Singapore resident director is required.

4. Engage a Corporate Services Provider – For incorporation, compliance, and ongoing support.

5. Prepare Required Documents – Passport, proof of address, business plan, and shareholder details.

6. Open a Corporate Bank Account – In Singapore or an international bank.

7. Comply with Annual Requirements – Including filing annual returns and tax submissions.
   

13. Real-World Examples of Vietnamese Success Stories

• Technology Startups – Vietnamese software companies have incorporated in Singapore to raise capital from US and European investors.

• Export-Import Businesses – Trading firms use Singapore to manage logistics, customs, and payments for global shipments.

• Manufacturers – Move HQ operations to Singapore to benefit from better tax treaties and global supply chain access.
  

14. Challenges to Be Aware Of

While Singapore offers many advantages, Vietnamese entrepreneurs should be prepared for:

• Higher Operational Costs – Office space and salaries are generally higher than in Vietnam.

• Strict Compliance Requirements – Annual filings and accounting standards must be met.

• Cultural and Regulatory Differences – Understanding Singapore’s corporate culture and business etiquette is important.

These challenges can be mitigated by working with experienced local advisors.

Conclusion

For Vietnamese business owners aiming to expand beyond their domestic market, setting up a Singapore company offers unmatched advantages—ranging from tax benefits and global credibility to strategic location and access to capital. While there are initial costs and regulatory obligations, the long-term rewards can far outweigh them.

By leveraging Singapore’s world-class business environment, Vietnamese entrepreneurs can position themselves as competitive players not only in ASEAN but also in the global market. For many, Singapore is not just a place to register a company—it’s a launchpad for international success.