# Merchant of Record In Vietnam > See how Vietnamese SaaS teams use a Merchant of Record to handle global payments, tax compliance, and multi-currency billing without foreign entities. - **Author**: Joshua D'Costa - **Published**: 2025-02-12 - **Category**: Merchant of Record, Tax & Compliance - **URL**: https://dodopayments.com/blogs/merchant-of-record-vietnam --- If you're running a SaaS business in Vietnam, you already know that accessing international revenue streams can be a real challenge. Local companies often face hurdles when it comes to payment processing, tax compliance, and expanding beyond domestic markets. Vietnamese [digital economy poised to reach $49 billion by 2025](https://english.thesaigontimes.vn/vietnams-digital-economy-may-reach-us49-billion-by-2025/). However, businesses struggle to grow internationally for several reasons. For one, many popular platforms like Stripe and PayPalcome with restrictions that make it difficult to access global payment solutions. Add to that the complexities of Vietnam's ever-evolving tax policies, For instance, the Foreign Contractor Tax (FCT) applies to remote sellers, combining both VAT and income tax on their digital service sales. (Check out more information to understand your potential tax registration requirements on the [government website](https://etaxvn.gdt.gov.vn/nccnn/Request).) It's no wonder businesses are looking for solutions that can tackle it all. Well, there is a solution that can simplify everything from filing taxes to stress-free international payments. Merchant of Record! In this blog, we'll explore why Vietnamese businesses struggle with global expansion, the key challenges they face, and how Dodo Payments empowers them to thrive in the global market. ## Stripe and PayPal availability in Vietnam in 2026 Vietnam's fintech industry is growing fast, and digital payments are taking off. [By 2025, the market is expected to grow by over 18% each year](https://www.statista.com/outlook/fmo/digital-payments/vietnam#:~:text=Digital%20Payments%20%2D%20Vietnam-,Vietnam,US$9%2C298.00bn%20in%202025).), with Mobile POS payments leading the way. While this creates opportunities, it also brings challenges like tax compliance and cross-border transactions which a Merchant of Record (MoR) simplifies. > Tax compliance is not a one-time setup. It is a moving target. Rates change, thresholds change, and new jurisdictions add digital services taxes every year. Automating this is not optional if you sell globally. > > \- Rishabh Goel, Co-founder & CEO at Dodo Payments While **Stripe** is a powerful payment gateway, it's not officially supported in Vietnam. Businesses need to incorporate their company in the U.K. to use it, which is both costly and time-consuming. On the other hand, **PayPal Vietnam** [has faced compliance challenges in Vietnam](https://vietnamnews.vn/economy/1690544/agoda-airbnb-booking-and-paypal-must-register-with-tax-authorities.html), leaving businesses with limited payment options and delayed transactions. In addition to these international solutions, Vietnam's local payment providers like **VNPay, MoMo, and ZaloPay** are making significant strides in digital payments. These platforms have become essential for everyday transactions and serve as critical players in Vietnam's fast-evolving digital economy. The ever-changing VAT (Value Added Tax) regulations and other compliance challenges, make it clear why Vietnam businesses need a Merchant of Record. ## The Problem with Vietnameses Global Expansion 1. **Barriers to Global Payment Platforms** Many Vietnamese businesses find it difficult to access popular payment platforms like Stripe Vietnam or PayPal Vietnam. These platforms often require a local business entity or bank account in the target market, which can be a significant barrier for small and medium-sized enterprises (SMEs). 2. **Tax and Compliance Complications** Since July 2020, even foreign suppliers offering e-commerce or digital platform services without a permanent establishment in Vietnam have been subject to VAT and CIT obligations. This means that non-resident digital service providers must register, charge, and remit VAT, adding to business complexity. 3. **Limited Payment Processing Options** While Vietnam is rapidly digitalizing its financial services, many businesses still face limited options for processing international payments. This restricts their ability to accept payments from global customers seamlessly. 4. **Dependence on Foreign Accounts** Setting up foreign business entities or bank accounts to accept international payments is costly and complex, especially for startups and SMEs. ## Criteria for Choosing a Payment Gateway in Vietnam When selecting a payment gateway, consider the following: - Ensure the platform supports major currencies like USD, EUR, and VND. - Look for providers that offer diverse payment methods, including B2C and B2B transactions. - Choose a gateway that integrates with popular e-commerce platforms like Shopify and WooCommerce. - Prioritize platforms with robust security features, including SSL encryption and fraud detection. ## Introducing Dodo Payments At [Dodo Payments](https://dodopayments.com/payments/merchant-of-record), we understand that expanding your business globally can be challenging, especially when you're dealing with complex regulations and payment hassles. Here's how we make your life easier: 1. **Seamless Global Payments** With Dodo Payments, businesses can accept payments from customers worldwide in multiple currencies. Whether it's USD, EUR, or VND, our platform ensures smooth and hassle-free transactions. 2. **Regulatory and Tax Compliance** We take care of all tax obligations, including VAT and GST, so you don't have to. Our automated compliance system ensures that your business stays compliant with Vietnam taxes and international regulations. 3. **Reliable Payouts** Say goodbye to delayed payments. Our platform ensures timely and secure payouts, so you can focus on growing your business. 4. **No Need for Foreign Business Entities or Bank Accounts** With Dodo Payments, you can sell internationally without setting up a foreign business entity or bank account. This eliminates unnecessary costs and complexities, making global expansion simpler than ever. ## FAQ ### Is Stripe officially available for Vietnam-based SaaS companies? Stripe is not officially available for most Vietnam-based entities, so many founders need foreign incorporation workarounds. A Merchant of Record can help you sell globally without creating overseas entities just to process payments. ### Do foreign SaaS companies need to handle VAT when selling into Vietnam? Yes, foreign digital sellers may have VAT obligations in Vietnam depending on their sales activity and customer base. This is one reason many teams use an MoR to automate tax calculation, collection, and remittance. ### Why is a Merchant of Record useful for Vietnamese startups? An MoR takes legal and operational ownership of payments, tax compliance, and many dispute workflows. That reduces admin work for your team and makes global expansion faster and less risky. ### Can I accept multiple currencies from Vietnam without opening foreign bank accounts? Yes, with the right payment infrastructure you can bill buyers in multiple currencies while getting streamlined payouts. An MoR model is designed to remove the need for setting up separate foreign entities and accounts in each market. ### What should I look for in a Vietnam-friendly payment setup? Prioritize multi-currency support, strong fraud controls, reliable payouts, and automated compliance coverage. You should also confirm the provider supports both local and international payment preferences for your target regions. ## Conclusion Dodo Payments as your Merchant of Record, you can overcome the challenges of cross-border payments, taxes, and regulatory compliance. Our platform is designed to help businesses thrive in the global market, offering seamless payments, reliable payouts, and hassle-free tax handling. Ready to Revolutionize your business with [Dodo Payments](https://dodopayments.com/)? Take the leap today and grow your business beyond borders by [signing up](https://dodopayments.com/pricing).