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.
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.
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.
Ready to Expand into Malaysia? Choose 3E Accounting Today!
Stay Secure, Stay Successful With 3E Accounting Services
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 supports fast, digital company registration with clear foreign ownership rules. For full details, see the Malaysia company registration guide.
Malaysia’s corporate tax rate is 24%, while Vietnam applies 20%. Malaysia provides more structured tax incentives, explained in this guide to setting up businesses in Malaysia.
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.
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