Choosing where to base or relocate your startup is a big strategic decision. Vietnam and the United Arab Emirates (UAE) represent two very different models of startup environments: one is grassroots, emerging, and cost-efficient; the other is polished, global-facing, and optimized for speed and capital. Let’s unpack the real-world pros and cons of each to help you decide.
Cost & Financial Considerations
Vietnam is incredibly cost-efficient. Salaries, office space, utilities, and even basic incorporation fees are dramatically lower than in most global cities. You can rent an office in Ho Chi Minh City for the cost of coworking in Dubai. Developer salaries, in particular, can be 3–5x lower than in the West. If you’re in bootstrapping mode or trying to extend your runway, Vietnam is hands-down the more affordable option.
UAE, especially Dubai and Abu Dhabi, is expensive — but it’s optimized for startups that need visibility, connections, and speed. Setup costs in free zones range from $5,000–$10,000, but you get a polished infrastructure, fast licensing, and access to global capital. You won’t save money here — but you may gain acceleration and legitimacy.
Legal & Regulatory Environment
Vietnam has made progress in welcoming foreign-owned businesses, but the process can be bureaucratic and slow. Setting up a 100% foreign-owned LLC requires multiple steps with government departments, a registered office, bank deposits, and charter capital (typically ~$10K USD minimum). The language barrier and opacity of regulation can make things harder without local help.
UAE, on the other hand, is one of the smoothest jurisdictions in the world for setting up a business. You can form a company in a free zone in under 10 days, with 100% foreign ownership, no local partner, and clear digital onboarding. The country has streamlined procedures, a strong legal framework (including IP protection), and numerous startup-friendly visa and residency schemes. If you want clarity and speed, UAE wins.
Taxation & Banking
Vietnam levies a 20% corporate income tax (CIT), and a 10% VAT on most services. Tax compliance can be complex and often requires a local accountant. Banking is still developing: opening accounts involves physical paperwork, FX restrictions, and often inconsistent service. It’s workable, but not seamless.
UAE has historically been tax-free, though since 2023, a 9% corporate tax applies to profits over AED 375,000 (around $100K USD). There’s also a 5% VAT, but many services are zero-rated in free zones. Banking is modern, fast, and global-friendly, especially in Dubai, where HSBC, Standard Chartered, and top local banks like Emirates NBD serve startups well. It’s easy to get multi-currency accounts, international transfers, and fintech integrations.
Talent Pool & Hiring
Vietnam offers a young, highly skilled, and affordable workforce, especially in engineering and technical roles. The country produces thousands of computer science grads each year, and many are fluent in English and experienced in working with Western clients. For dev-heavy teams, this is gold.
The UAE workforce is entirely different. You won’t find many locals in startups — it’s a cosmopolitan mix of expats from India, Pakistan, Europe, the US, and Africa. Salaries are much higher, but the talent is polished, multilingual, and experienced in enterprise, fintech, and global markets. If you’re looking for executive-level hires, biz dev talent, or financial services professionals, UAE is a great pool.
One nuance: remote teams. Vietnam is ideal for assembling a lean, high-output remote team. UAE is better for HQ or front-facing teams with international visibility.
Startup Ecosystem & Fundraising
Vietnam’s startup scene is young but growing. Cities like Ho Chi Minh and Hanoi are now home to hundreds of tech startups, and the government is actively promoting innovation zones and accelerators like VIISA and ThinkZone. Local VC presence is improving (VinaCapital, Do Ventures), and regional funds (500 Startups, Monk’s Hill, Golden Gate Ventures) are paying close attention.
UAE is more established, with robust government support, sovereign wealth funds (like Mubadala), and initiatives like Hub71 (Abu Dhabi) and DIFC Fintech Hive (Dubai). Regional VC funds are plentiful, and global capital flows in regularly. If you’re scaling a fintech, logistics, Web3, or sustainability startup, UAE is the visibility play.
That said, Vietnam offers more greenfield opportunity: less competition, faster market penetration, and organic growth potential.
Market Access & Strategic Geography
Vietnam is embedded in Southeast Asia — a region with 680M people and skyrocketing digital adoption. If you’re targeting SEA growth (Indonesia, Philippines, Thailand), Vietnam is central. It’s also near China, which is key for manufacturing, logistics, or supply chain startups.
UAE is the gateway to MENA, South Asia, and even Europe. It offers strategic access to markets in Africa and Central Asia, along with stable international transport and a world-class aviation hub. If your product is region-agnostic and you want global reach fast, UAE gives you that.
Lifestyle & Founder Experience
Vietnam is a creative, affordable, and deeply cultural place to live. Think: cafes, scooters, street food, night markets, and a chill work-life rhythm. English is spoken in urban areas, and expat communities are growing. Healthcare is good, especially in private clinics. You’ll need patience with bureaucracy, but the cost of living is 1/3 of Dubai.
UAE is sleek, high-end, and ultra-connected. Think: skyscrapers, beaches, Michelin-star restaurants, and glittering networking events. You’ll find safety, stability, and excellent healthcare, education, and infrastructure, but you’ll pay for it. Dubai is especially friendly to solo founders, digital nomads, and women entrepreneurs.
