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Singapore Vs Vietnam 2026: Which Country is Best for your Business? 

In 2026, Singapore and Vietnam are the top two countries for starting or expanding a business in Asia. Both countries are convenient, but their business paths are very different. 

Singapore has long been known as one of the most stable and reliable business hubs in Asia. The policies, laws, and administrative processes are clear and predictable. Vietnam is rapidly emerging as a high-growth manufacturing economy.  

Vietnam received over USD 38 billion in FDI in 2025. This is expected to increase further in 2026. A large portion of this investment came from Singapore-based companies, making Singapore only the top destination for business setup in Singapore.  

This guide compares the key factors such as company setup, costs, taxes, talent, visas, trade access, manufacturing capacity, and stability. This will help you choose between these two countries based on your business preferences.  

Company Setup Features: Singapore Vs Vietnam 

This section covers the company setup process in Singapore and Vietnam. Read the features given for both countries to determine which suits better for your business.  

Sneak Peek into Singapore 

The biggest advantage of starting a business in Singapore is the speed and simplicity of process. The entire process can be completed online through ACRA’s BizFile+ portal. 

Key features are: 

• Company registration within 1 or 2 business days, in general. 

• The government fee is approx. SGD315. 

• 100% foreign ownership is allowed for company setup. 

• No minimum capital requirement for company setup. 

• Bank account opening and GST registration are relatively fast in Singapore. 

Businesses that fall into regulated sectors such as education, healthcare, or finance may undergo additional reviews. So, the time can take up to 14–60 days. The Singapore government introduced AI-assisted filing, expedited review systems, and reduced approval times in 2026. 

Sneak Peek into Vietnam 

The setup process for foreign companies in Vietnam is relatively step-by-step and time-consuming. 

The main steps are: 

• IRC (Investment Registration Certificate): 7 to 15 working days 

• ERC (Enterprise Registration Certificate): 3 to 7 working days 

The government fee is very low, around VND150,000. However, document notarization, translation, and in-person office attendance are required in some cases. Digital portals are being improved in different provinces in 2026, but procedural differences remain the same. 

If the goal is to start a business quickly, Singapore country is the best for company setup. Vietnam country requires business setup planning, but the benefits are long-term. 

What is the Cost of Operating in Singapore and Vietnam? 

The biggest question after starting a business is the cost of operating. The difference between Singapore and Vietnam countries’ operating are very clear in this section. 

Office rent (Grade-A, monthly) 

• Singapore CBD: USD 130 or more per sq mt. 

• Ho Chi Minh City: USD30 to USD70 

• Hanoi: Even lower USD30 to USD70 

Software engineer salaries 

• Singapore: SGD6,000 to SGD8,500 per month 

• Vietnam: USD900 to USD1,400 per month 

The average annual income of a mid-level tech professional in Vietnam is around VND 346 million. Office rents in Singapore could increase by around 4%. Operating costs in Vietnam will remain relatively stable. 

The same business in Vietnam can survive 3 to 5 times for a prolonged duration on a budget. This is a big advantage for startups, manufacturing units, or scale-up businesses. 

Vietnam is far ahead in terms of cost control and long runways. While Singapore is more expensive, it offers speed, stability, and international credibility. 

Singapore and Vietnam’s Tax Structure and Incentives in 2026 

Tax structure plays a crucial role in business profitability and long-term planning. In 2026, both Singapore and Vietnam countries offer different types of advantages. 

Singapore’s Tax Structure 

Singapore’s tax system is simple and predictable. The corporate income tax rate is 17%, which is lower than in many other Asian countries. 

Key benefits include: 

• The biggest advantage for startups is the Start-Up Tax Exemption (SUTE) 

• 75% tax exemption on the first SGD 100,000 of chargeable income. This benefit is available for the first 3 years of assessment. 

• GST is currently 9% in Singapore.  

• There are over 100 Double Taxation Agreements (DTAs) in Singapore. 

• A 15% minimum tax under Pillar Two for large multinational groups will be effective from 2025. 

• This structure is particularly suitable for early-stage SMEs and service-based businesses in Singapore. 

Vietnam’s Tax Structure 

Vietnam has a standard corporate income tax rate of 20%. However, incentives significantly reduce the actual tax burden. Meeting tax compliance requirements can’t be avoided in Vietnam.  

Key benefits include: 

• Reduced tax rates of 10% to 17% for specific sectors. 

• 4 years of complete tax holiday. 

• 50% tax reduction for the following 9 years. 

• VAT is 8% to 10%, which will remain in effect until 2026. 

Special benefits for high-tech, green energy, and manufacturing sectors under the new CIT law. 

Effective SME Tax Comparison 

Look below to know the effective SME tax comparison in Singapore and Vietnam.  

• Singapore: This is better for early-stage companies due to SUTE. 

• Vietnam: This is more tax-efficient for manufacturing or capital-intensive projects that qualify for incentives. 

Singapore is ideal for startups and service-based SMEs. Entrepreneurs eyeing large investments and manufacturing-based projects must go for company registration in Vietnam to fulfil their entrepreneurial dreams.  

How Does the Talent and VISA System Work in Singapore and Vietnam? 

Finding the right people and employing them legally is crucial for business success. Both countries offer different opportunities regarding talent searches and visas.  

Singapore’s Talent and Visa System 

Singapore’s English proficiency is among the top three in the world. This makes managing international clients and global teams easier. The COMPASS framework has seen some updates in 2026: 

• Higher salary thresholds in Singapore. 

• 5-year employment passes for specific tech skills. 

• Singapore ranks among the top 5 globally in the startup talent ecosystem. 

This makes Singapore ideal for leadership, fintech, consulting, and client-facing roles. 

Vietnam’s Talent and Visa System 

• Vietnam has a young and large workforce, which is very cost-effective. 

• EF English Proficiency Ranking is approximately #64. 

• English proficiency is relatively better in major cities. 

• Decree 219 has simplified the work permit process. 

Singapore-Vietnam Talent Exchange Program  

Singapore works best for Englishheavy client work and predictable executive hiring. Vietnam is effective for costefficient team buildout (engineering, ops, and back office) with admin planning. 

Market Access and Trade Connectivity 

When deciding which country to start a business in, it’s not just about costs or taxes. The ease of market access and the smoothness of trade are also crucial. Singapore and Vietnam offer different advantages, leading to different outcomes depending on your business objectives. 

Singapore’s Market Access and Trade Connectivity 

Singapore is often called Asia’s trade gateway. It is primarily due to its robust trade agreements and advanced logistics system. 

• Singapore has over 27 Free Trade Agreements (FTAs), including RCEP, CPTPP, and agreements with various major economies. 

• These agreements reduce tariffs on imports and exports and minimize bureaucratic hurdles. 

• Singapore’s ports and airports are world-class. Goods are cleared quickly, and the risk of delays is very low. 

• Singapore is a trusted centre for international agreements, arbitration, and IP protection. Therefore, it is very advantageous for service, tech, fintech, or IP-based businesses. 

In short, doing business in Singapore means fewer worries about borders, customs, or legal complexities. 

Vietnam’s Market Access and Trade Connectivity 

Vietnam is primarily an export-oriented economy. The country has made rapid progress in manufacturing and exports in recent years. 

• Vietnam has 16 active FTAs, such as EVFTA, UKVFTA, and RCEP. These agreements facilitate the export of goods to markets in Europe, the UK, and Asia. 

• The Vietnam government is increasing investment in the logistics sector. The goal is to reduce logistics costs to 12-15 per cent of GDP by 2030. 

• The export process is gradually becoming easier with improvements in industrial zones, ports, and expressways in Vietnam.  

Choose Singapore if your business involves services, international clients, or managing a regional headquarters. Vietnam is suitable if your business relies on manufacturing and exports. In short, Singapore reduces trade friction, while Vietnam opens the door to exports. 

Manufacturing, Supply Chain, and Industrial Benefits 

This section covers the manufacturing process, supply chain system, and industrial benefits offered by Singapore and Vietnam countries.  

Vietnam: A Leading Manufacturing Hub 

Vietnam is currently one of the leading manufacturing hubs in Southeast Asia. The country is rapidly advancing, especially in electronics and high-tech manufacturing. 

Vietnam’s strengths include: 

• Strong position in electronics manufacturing 

• Large presence of global companies like Samsung, Foxconn, and Intel 

• Various High-Tech Parks and Special Economic Zones (SEZs) 

• Tax exemptions and infrastructure facilities for specific sectors 

• Important role in the China-Plus-One strategy 

These advantages result in lower production costs and faster supply chain development. 

Singapore: A Specialized Manufacturing Hub 

Singapore primarily focuses on advanced and high-value manufacturing. Here you will find: 

• Semiconductor and pharmaceutical manufacturing 

• High levels of automation and technology utilization 

• Strong quality control and research facilities 

However, it is relatively more expensive for large-scale production due to higher labor and land costs. 

Takeaways: Vietnam is better suited for large-scale production. Singapore is ideal for high-quality, specialized manufacturing. 

Governance, Stability, and Investor Confidence in Singapore and Vietnam  

Legal transparency and administrative stability are crucial for the long-term success of a business. 

According to Transparency International CPI 2024: 

• Singapore: Rank #3, Score 84 

• Vietnam: Rank approximately #88, Score 40 

In Singapore: 

• Clear interpretation of laws and policies 

• Consistency in rule enforcement 

• Predictability in government decisions 

In Vietnam: 

• Anti-corruption initiatives have been strengthened in recent years 

• Variations in rule enforcement exist across different provinces 

• Administrative interpretations may differ in some cases 

Singapore is safer, where lower risk and greater certainty are required. Understanding local realities is essential when operating in Vietnam. 

Singapore vs Vietnam in 2026: Which Country Suits your Business?  

Both countries, Singapore and Vietnam offer different advantages for different types of businesses. The right decision depends on your business type, stage of growth, cost sensitivity, and whether you’re targeting regional or global markets. Singapore offers stability and speed, while Vietnam offers scale and cost advantages. 

Look at the table given below to obtain clarity between Singapore and Vietnam on the basis of factors in the category section.  

Category	Singapore	Vietnam
Company setup	1–2 days, fully digital	3–5 weeks, two-stage process
Business costs	High rents and salaries	Low operating and labour costs
Tax environment	17% CIT + strong SME relief	20% CIT + strong manufacturing incentives
Startup friendliness	Strong for tech & services	Growing, sector-focused
Talent & visas	High English proficiency, predictable passes	Large, young workforce, improving permits
Trade access	27+ FTAs, top-tier logistics	16 FTAs, export-focused
Manufacturing strength	Limited, high-tech only	Strong electronics & industrial base
Governance & stability	Highly predictable, low corruption	Improving varies by province
Best suited for	HQs, services, IP, fintech	Manufacturing, exports, scaling teams

Who Should Choose Singapore? 

Singapore is ideal for businesses where speed and credibility are paramount. 

Choose Singapore if: 

• You need a fast company setup 

• Your clients or investors are international 

• You require strong legal protection and financial transparency 

• You want a regional headquarters or IP ownership 

So, Singapore is preferred for fintech, SaaS, consulting, and service-based businesses. 

Who Should Choose Vietnam? 

Vietnam is a better option for businesses focused on cost control and manufacturing. 

Choose Vietnam if: 

• You need a low-cost team and office. 

• Your business is manufacturing or export oriented. 

• You can handle a longer setup timeline. 

• You want to be part of a global supply chain. 

• Vietnam is highly effective for electronics, garments, and industrial units. 

Strategic Hybrid Option 

Many companies are adopting the Singapore holding company + Vietnam operations model in 2026. This combines the credibility of Singapore with the cost advantages of Vietnam. 

Final Verdict  

The best country in 2026 is the one that best aligns with your business goals. Singapore is superior for quick setup, stability, and an international image. Vietnam is strong for large-scale, low-cost manufacturing and exports. In many cases, a combined structure utilizing both countries are the most practical decision.  

How Enterslice Supports Business Setup in 2026? 

Enterslice supports business expansion across Asia easily, securely, and hassle-free. Whether you want to incorporate a company in Singapore or set up an operational entity in Vietnam, our experienced professionals oversee the entire process from a single point of contact. 

Our services include: 

• Complete Process Assistance: Company formation, bank accounts, licenses, and post-registration services. 

• Legal and Regulatory Support: Legal documents, IP protection, and compliance. 

• Accounting and Tax Support: Accurate accounting, tax filing, and tax consulting. 

• Fast and Transparent Process: Quick approvals, cost transparency, and 24/7 support. 

• Business and IP Consulting: IP registration, compliance, and business management advice. 

Scale with confidence in 2026, ensuring clear decisions, rapid execution, and full compliance with Enterslice. 

To Wrap Up 

Singapore is known for its transparent laws, quick setup, and global connectivity. Vietnam, on the other hand, is favourable due to its lower costs, strong manufacturing base, and export advantages. 

The “best country for business” in 2026 ultimately depends on your business goals, budget, and scaling plans. A hybrid model with Singapore for holding and Vietnam for operating is the most effective for many companies. 

Enterslice simplifies your strategy, setup, and compliance from start to finish. So, contact us today for hassle-free business setup in Singapore or Vietnam.

All You Need To About Singapore vs Vietnam for Business