Doing Business in Malaysia VS Vietnam

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.

 

Frequently Asked Questions

Is Malaysia or Vietnam more suitable for setting up a small business?

Answer: 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.

How does company registration in Malaysia compare with Vietnam?

Answer: Malaysia supports fast, digital company registration with clear foreign ownership rules. For full details, see the Malaysia company registration guide.

What are the corporate tax rates in Malaysia and Vietnam?

Answer: 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.

Which country has better operational efficiency for businesses?

Answer: Malaysia offers stronger digital infrastructure, logistics, and administrative efficiency. Consider exploring company setup in Malaysia for streamlined operations.

Who can help with company incorporation in Malaysia?

Answer: Contact 3E Accounting for full-service company incorporation services that cater to local and foreign investors.

Is it mandatory to appoint a company secretary in Malaysia?

Answer: Yes. Every incorporated company must appoint a licensed secretary. Learn more about company secretary services in Malaysia.

What government body oversees business compliance in Malaysia?

Answer: The Companies Commission of Malaysia (SSM) handles incorporation, compliance, and reporting standards.

Can I manage all incorporation services under one provider in Malaysia?

Answer: Yes. 3E Accounting offers complete company incorporation services, including tax advisory, secretarial support, and post-incorporation solutions.