When outsourcing, companies seek partner countries where doing business is seamless. Factors such as economic stability, language, and bureaucracy play a crucial role in determining the success of an investment.
Navigating complex regulations and administrative hurdles can slow down operations and increase costs, making it essential to choose a destination with a business-friendly environment.
One key indicator that investors rely on is the Ease of Doing Business Index, which evaluates countries based on factors such as business registration, tax policies, contract enforcement, and access to credit.
While Vietnam has already made remarkable progress in this ranking, standing at the 70th position in 2020—an impressive leap from its 99th position in 2013—the country’s efforts to welcome international businesses are accelerating tremendously.
Today, Remote Resources comes back to highlight two recent and major announcements by local authorities that are set to revolutionize the business environment in Vietnam and make it even more attractive for foreign companies looking to invest.
Let’s explore how this upward trend showcases Vietnam's dedication to economic reform and its ambition to position itself as a leading investment hub in Southeast Asia.
Understanding Vietnam’s current Ease of Doing Business
To better understand Vietnam’s position, let's first take a closer look at the areas where it excels and where further improvements are needed. Although Vietnam ranks 70th overall, its performance varies significantly across different categories:
- Starting a Business (115th): While the process has improved, further simplifications could enhance Vietnam’s competitiveness in attracting startups.
- Dealing with Construction Permits (25th): A strong ranking, reflecting efficient regulations that facilitate project approvals.
- Getting Electricity (27th): Businesses benefit from reliable electricity infrastructure and streamlined connection processes.
- Registering Property (64th): Moderately ranked, with ongoing improvements to simplify land registration procedures.
- Getting Credit (25th): A major strength, demonstrating Vietnam’s well-developed financial sector and access to business financing.
- Protecting Minority Investors (97th): Efforts are underway to strengthen corporate governance and transparency.
- Paying Taxes (109th): Tax procedures are still complex, but digitalization initiatives are expected to improve compliance efficiency.
- Trading Across Borders (104th): While logistics can pose challenges for goods, service-based industries—such as staffing and IT—face fewer cross-border obstacles.
- Enforcing Contracts (68th): Vietnam offers reasonable contract enforcement, though legal proceedings can sometimes be lengthy.
- Resolving Insolvency (122nd): This remains a challenge, but regulatory reforms aim to modernize bankruptcy procedures.
Now, let’s see how Vietnam is tackling these issues and capitalizing on its strengths.
Vietnam’s Push to Streamlining the Public Workforce with a 20% Reduction
The Vietnamese government has embarked on a major administrative reform by implementing Decree No.178/2024/ND-CP, effective January 1, 2025.
This decree aims to reduce the civil service workforce by at least 20% as part of an effort to enhance efficiency and streamline the state apparatus, as well as reducing the number of governmental agencies and ministries.
This initiative mirrors global trends in reducing bureaucracy and improving government efficiency. Similar efforts have been seen in countries like the United States, where the Department of Government Efficiency (DOGE) has spearheaded initiatives to eliminate redundant administrative processes and streamline public services.
To ensure a smooth transition, the Vietnamese government has introduced policies such as early retirement incentives, leadership transition programs, talent retention initiatives, and workforce training.
Additionally, responsibilities for workforce assessments and layoff decisions will be delegated to Party organizations, administrative bodies, and heads of organizations managing civil servants.
For businesses, this reform means a leaner and more responsive public administration. Companies operating in Vietnam can expect faster processing times, fewer bureaucratic hurdles, and a more efficient regulatory environment.
The government is emphasizing political education and awareness campaigns to ensure the reform’s success, prioritizing collective interests over personal considerations.
The Capital City of Hanoi Joins In on the Effort and Announces a 30% Simplification in Business Regulation
On March 11, 2025, the Hanoi People’s Committee announced a bold initiative to eliminate at least 30% of unnecessary business regulations and reduce administrative processing time by the same percentage.
This is a decisive move to stimulate economic growth and improve the ease of doing business in the capital.
The city aims to position Vietnam among the top three ASEAN countries for investment attractiveness within the next two to three years. These measures include:
- Streamlining licensing procedures
- Enhancing transparency in administrative processes
- Accelerating investment in strategic infrastructure projects
- Improving access to credit for businesses
Furthermore, Hanoi is working on policies to attract real estate investments and transform urban areas into growth hubs. Talent attraction and retention strategies will be implemented for state-owned enterprises, ensuring a more competitive public sector.
While these reforms are currently centered in Hanoi, there is strong potential for them to be replicated in other major business hubs such as Ho Chi Minh City, Da Nang, and Hai Phong.
If successful, these initiatives could create a ripple effect, leading to nationwide improvements in Vietnam’s business climate.
AI-Powered Reforms: The Next Step for Government Efficiency
Finally, Vietnam bureaucracy’s transformation should also soon benefit from deep tech advancements. The country’s strong partnerships with tech giants like Meta, Microsoft, and NVIDIA have paved the way for AI-driven advancements that could further streamline government operations.
Initiatives like Project ViGen, which focuses on developing open-source Vietnamese AI datasets, lay the foundation for smarter, more efficient public services. By integrating AI into administrative processes, Vietnam aims to reduce bureaucratic delays, enhance decision-making, and provide faster, more transparent services for businesses and citizens alike.
To learn more about how AI is reshaping Vietnam’s economy and public sector, read our dedicated article on Vietnam’s AI investments.
Conclusion
Vietnam’s ongoing reforms highlight a firm commitment to making the country an even more attractive investment destination. The combination of administrative streamlining, workforce optimization, business-friendly policies, and AI integration signals a shift toward a more dynamic and efficient economic environment.
For foreign investors and entrepreneurs who previously viewed Vietnam as a complex place to establish operations, these recent developments should provide reassurance. With reduced bureaucracy, faster administrative processes, and a clear vision for economic growth, Vietnam is setting itself up as one of the most promising investment destinations in Southeast Asia.
If your business is looking to capitalize on Vietnam’s growing opportunities, Remote Resources can help you establish and scale your operations with our Build-Operate-Transfer (BOT) model.
We provide expert guidance in setting up teams, optimizing workflows, and ensuring a smooth transition to full ownership.
Contact us today to learn how we can support your success in Vietnam.
