Doing Business in Malaysia VS Vietnam – A Comparison
Entrepreneurs and investors looking to expand in Southeast Asia often compare starting a business in Malaysia with setting up in Vietnam. Both countries offer distinct benefits that make the decision a challenging one, especially for small and mid-sized businesses aiming for cost efficiency and regional access.
Malaysia is praised for its strong infrastructure, competitive tax incentives, and business-friendly regulations. Meanwhile, Vietnam is one of Asia’s fastest-growing economies, attracting attention with its large workforce and rising foreign direct investment. This comparison outlines key differences to help you choose the right base for your business.
Key Comparison Points
Business Environment
- Malaysia: Malaysia offers a stable political climate, clear legal framework, and transparent government policies, making it a preferred destination for company incorporation in Malaysia.
- Vietnam: Vietnam’s business climate continues to improve with support for foreign investors, though businesses may face regulatory inconsistencies and longer approval times.
Taxation
- Malaysia: Malaysia applies a 24% corporate tax rate and offers industry-specific incentives.
- Vietnam: Vietnam has a 20% corporate tax rate, with preferential rates for high-tech and encouraged industries, but the tax process can be more bureaucratic.
Ease of Company Incorporation
- Malaysia: The incorporation process is fast and digitalized, with full support from company incorporation services like 3E Accounting.
- Vietnam: Incorporation is improving but still involves multiple steps and licensing requirements, often requiring local legal support.
Cost of Living and Business Operations
- Malaysia: Malaysia offers affordable living, low rental costs, and modern business facilities. It’s ideal for efficient company setup in Malaysia.
- Vietnam: Vietnam has low labor costs and competitive rental rates, although infrastructure outside major cities may be less developed.
Access to Markets
- Malaysia: Malaysia provides direct access to ASEAN and global markets through multiple FTAs and strong logistics, regulated by the Companies Commission of Malaysia (SSM).
- Vietnam: Vietnam is part of major trade agreements like CPTPP and RCEP, making it a hub for export manufacturing, though customs and licensing may pose delays.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
| Key Factors | Malaysia | Vietnam |
| Business Environment | Stable and transparent | Improving but sometimes inconsistent |
| Corporate Tax Rate | 24% | 20% |
| Capital Gains Tax | No capital gains tax for individuals | Capital gains tax applies in some cases |
| Ease of Incorporation | Fast, digital, foreigner-friendly | Moderate, involves licensing |
| Business Costs | Low operating and living costs | Low labor costs, variable infrastructure |
| Market Access | ASEAN + FTAs, strong logistics | Asia-Pacific trade agreements, some red tape |

Benefits of Choosing 3E Accounting
Selecting the right partner is crucial when it comes to starting a business in Malaysia. At 3E Accounting, we offer a comprehensive range of solutions designed to simplify the entire process of company incorporation in Malaysia. From ensuring compliance with local regulations to providing expert guidance tailored to your specific needs, we make the journey seamless.
For entrepreneurs looking to navigate Malaysia company registration or explore company setup in Malaysia, our team provides unmatched expertise and support. Additionally, our company incorporation services are tailored to help you succeed in the competitive business environment.
With a deep understanding of the region’s business landscape, we also provide resources for setting up businesses in Malaysia, ensuring that every step is clear and efficient. Whether you need assistance with corporate secretarial or company secretary services, we are here to help.
To explore our services or discuss your business needs, contact 3E Accounting. With our strong presence in Malaysia and a proven track record, we are your trusted partner for success in Asia.
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Frequently Asked Questions
Malaysia offers a more streamlined setup process, stable regulations, and strong infrastructure. If you’re considering starting a business in Malaysia, it’s a reliable choice for long-term growth.
Malaysia offers stronger digital infrastructure, logistics, and administrative efficiency. Consider exploring company setup in Malaysia for streamlined operations.
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.