Guide to Entering the Vietnamese Market: A Complete Manual for Japanese Investors — Protect Your Assets Through Vietnam Market Entry: Now Is the Time to Take the Step Beyond Japan

01 - To Our Japanese Investors: Have You Considered Expanding Overseas to Preserve and Grow Your Assets?
Given the risks of holding assets solely in Japan — low interest rates, limited investment opportunities, a diverse tax burden, and a weakening yen combined with rising prices — transferring and reinvesting assets abroad has become a growing trend in recent years.

02 - Why Is Vietnam an Attractive Investment Destination?
Political stability (a one-party system with consistent policy direction), tax transparency (underpinned by the Japan-Vietnam tax treaty for the avoidance of double taxation), an abundant workforce and an expanding consumer market, and a secure environment for international remittances through financial institutions.

03 - An Investment Story from Vietnam: A Case Study of a Japanese Individual Investor
Presented in FAQ format: individuals can establish a company on their own (a bank balance certificate is sufficient to satisfy the financial requirement); the legal representative is subject to a residency requirement (appointing a Vietnamese national as representative is also an option); minimum charter capital depends on the sector (e.g., VND 1 billion for a university, VND 30 million per enrolled student for a kindergarten); points to watch regarding the registered office address (the risks of using a virtual office); how dividends are received (distributed after 20% corporate income tax; personal income tax is exempt, but a filing obligation still arises in Japan, with the dividend withholding rate capped at 10% under the Japan-Vietnam tax treaty); receiving remuneration under a service contract (which triggers withholding tax — i.e., foreign contractor tax); and whether time deposits and corporate credit cards are available for use.

04 - Practical Points to Note, Drawn from Hands-On Experience
Choice of location (Hanoi: subject to a minimum capital requirement but with a longer IRC validity period; Da Nang: no minimum capital requirement but frequent IRC renewals; Ho Chi Minh City: stricter review standards); the need to respond promptly to legal amendments; and preparing for tax audits.

05 - Costs of Company Formation and Operation in Vietnam
Office rent from USD 500 per month; company formation costs from USD 3,000; outsourced tax and accounting services from USD 250 per month; annual tax finalization from USD 500; financial audit from USD 500; and personnel costs from USD 500.