06 November 2021 · Country Matchups · Global
Malaysia vs Vietnam for Digital Nomads
An evidence-based showdown from BorderPilot’s relocation desk
“When the spreadsheets say one thing and your heart says another, trust both—then run the numbers again.”
– My mentor at BorderPilot, reminding me that relocation decisions are equal parts data and desire.
Why This Match-Up Matters
Southeast Asia has long been the backpacker’s playground; today it’s also the remote worker’s boardroom. Malaysia and Vietnam consistently top “best places for nomads” lists thanks to:
- Affordable living costs
- Favourable climates (rainy seasons notwithstanding)
- English-friendly ecosystems, at least in major cities
- Rapidly improving digital infrastructure
Yet their similarities end once you dig into residency pathways, tax regimes and day-to-day livability. That’s where this piece steps in. By the end, you’ll have a clear sense of which country fits your income level, work style and lifestyle preferences—without having to wade through out-of-date forums or hearsay.
Methodology in a Nutshell
I pulled 2023–24 macroeconomic data from the World Bank, housing price indices from Numbeo, visa regulations from each government’s official portals, and on-the-ground intel from more than 40 BorderPilot relocation plans filed in the past 12 months. Currency conversions use the 60-day moving average as of publication (1 USD = 23,500 VND; 1 USD = 4.65 MYR).
1. Residency & Visa Pathways Compared
1.1 Tourist Visas: A Quick Fix, Not a Long Game
| Country | Visa-free / e-visa length | Extension options | Pain points |
|---|---|---|---|
| Malaysia | 90 days for most Western passports | Single 30-day extension at immigration | Overstays fined 170 MYR/day; strict departure checks |
| Vietnam | 90-day multi-entry e-visa (since Aug 2023) | Can convert to business visa in-country | Online portal occasionally crashes; need extra passport photo |
For pure “test the waters” visits, both countries are neck and neck. Malaysia’s process at the airport is smoother; Vietnam wins on the new 90-day multi-entry rule—ideal if you want weekend hops to Thailand or Laos without new paperwork.
1.2 Mid-Term Options (6–24 months)
Malaysia’s Multiple Entry Visa (MEV)
Often issued to freelancers tagging along with corporate spouses, or to entrepreneurs opening a labuan company. Valid 1 year, renewable.
Vietnam’s DN-1 & DN-2 Business Visas
Officially for foreign workers entering to work with Vietnamese enterprises. Many nomads partner with a local coworking space that acts as the sponsor. Costs ~140 USD for six months plus agency fee.
1.3 Long-Term Pathways
Malaysia My Second Home (MM2H) – New, Stricter Rules
• Capital requirement: 1 million MYR fixed deposit (≈ 215 k USD)
• Monthly offshore income ≥ 40 k MYR
• Age limit: none, but 15-year permit renewable every 5
Not exactly lean, yet popular with high-income remote founders who want ASEAN base status.
Vietnam’s Investment (DT) Visa
• Invest ≥ 3 billion VND (≈ 127 k USD) in a local company
• Three-year TRC (temporary residence card)
• Family joins under same umbrella
Lower cash threshold than MM2H but requires an active entity—no passive deposits.
Bottom line:
If you’re an early-stage freelancer, visa runs or a six-month DN-1 are practical in Vietnam; Malaysia makes life easier for tourists but sets a high bar for proper residency.
2. Taxation & Cost of Living Analysis
Disclaimer: I’m not your accountant; verify with a professional.
2.1 Personal Income Tax (PIT)
| Income (USD) | Malaysia effective rate | Vietnam effective rate |
|---|---|---|
| 30 k | 3 % | 5 % |
| 60 k | 8 % | 10 % |
| 120 k | 18 % | 20 % |
| 200 k+ | 24 % (top 30 %) | 27 % (top 35 %) |
Malaysia’s famously territorial system taxes only Malaysian-sourced income—foreign earnings remitted after Jan 2022 are technically taxable, but authorities still apply exemptions on certain categories. Vietnam taxes worldwide income once you hit 183 days, full stop.
Move-fast takeaway:
Remote employees paid by a US or EU entity and spending under six months in Vietnam can reduce PIT to near zero. Malaysia remains friendlier for high earners planning to stay long-term without sourcing income locally.
2.2 Corporate Tax & Self-Employment
Freelancers in both countries usually operate through:
- A home-country LLC (most common)
- Labuan-based company (Malaysia; 3 %-24 % depending on election)
- Vietnamese sole proprietorship (2 % turnover tax + 5 % PIT withholding)
Labuan’s 3 % regime explains why some digital agencies relocate servers to Malaysia. More on structuring in our Tax optimisation guide.
2.3 Cost of Living Snapshots (Monthly, Single Nomad)
| Category | Kuala Lumpur (MYR) | Ho Chi Minh City (VND) | USD equiv |
|---|---|---|---|
| 1-bed downtown rent | 2,600 | 12 m | 580 vs 510 |
| Coworking hot desk | 400 | 2 m | 85 vs 85 |
| Flat white | 13 | 45 k | 2.80 vs 1.90 |
| Grab/Be ride 5 km | 8 | 30 k | 1.70 vs 1.25 |
| 4G 10 GB data | 40 | 120 k | 8.60 vs 5.10 |
| Total budget (comfort) | 5,500 | 24 m | ~1,230 vs 1,090 |
Vietnam edges out Malaysia by ±10 % overall—bigger savings come from food (street meals at 1 USD still exist) and utilities. Malaysia counters with better building amenities: pools, gyms, 24-hour concierges are standard in KL condos.
3. Lifestyle & Culture Factors
3.1 Language & Communication
- Malaysia: English co-official, high proficiency outside rural areas
- Vietnam: English improving among Gen Z, but essential services remain Vietnamese-first
As someone who once tried to open a bank account in Đà Nẵng with Google Translate, I’d rate Malaysia 9/10 for linguistic ease, Vietnam 6/10.
3.2 Food Scene
Malaysia:
Laksa for breakfast, banana leaf curry for lunch, and a rooftop speakeasy for dinner—it’s a foodie wonderland.
Vietnam:
Banh mi at 7 a.m., cà phê sữa đá to power through code sprints, pho at midnight. Vietnamese cuisine is lighter, herb-forward, and merciful on lactose-intolerant stomachs.
3.3 Nightlife & Social Fabric
Malaysia’s alcohol taxes are sky-high, nudging locals toward dry bars or BYOB condo parties. Vietnam’s bar scene is wild, especially in District 1’s Bùi Viện street—but expect 90 dB EDM until 3 a.m.
3.4 Nature & Weekend Escapes
- 2 h from KL: Cameron Highlands tea trails, Langkawi beaches (1h flight).
- 2 h from HCMC: Mekong Delta, Vũng Tàu coast.
Vietnam’s rugged north (Hà Giang loop) trumps Malaysia for motorbike aficionados. Speaking of wheels, my colleague’s analysis on buying a car abroad vs long-term rental is worth a peek if you need your own transportation.
3.5 Healthcare & Safety
| Metric | Malaysia | Vietnam |
|---|---|---|
| WHO ranking | 49th | 62nd |
| Numbeo safety index | 58 | 53 |
| Typical expat ER fee | 75 USD | 60 USD |
Both countries offer international hospitals; Malaysia’s Penang and KL regularly host “medical tourism” patients. For routine dental, Vietnam wins on price.
4. Digital Infrastructure
| KPI | Malaysia | Vietnam |
|---|---|---|
| Average fixed broadband (Mbps) | 116 | 115 |
| 5G coverage in capital | 80 % | Pilot 5G zones only |
| Power outage frequency (big cities) | 1–2 /year | 6–8 /year |
Malaysia’s Tenaga Nasional grid is remarkably reliable. Vietnam’s sporadic load-shedding can be mitigated by choosing coworking spaces with generators—just verify before signing a six-month desk lease.
5. Community & Networking
- Kuala Lumpur houses seasoned tech expats—think Google, AWS regional staff.
- Ho Chi Minh City buzzes with early-stage founders bootstrapping SaaS or content sites.
Monthly nomad meet-ups average 60 attendees in KL; 120+ in Saigon (border re-openings created pent-up demand). Women-in-Tech chapters are active in both.
6. Best Option by Expat Profile
| Profile | Choose Malaysia if… | Choose Vietnam if… |
|---|---|---|
| Entry-level freelancer (<30 k USD) | Value condo amenities, want English everywhere | Need sub-1k USD monthly burn, like scooter culture |
| Mid-career developer (60–100 k) | Prefers lower tax on foreign income, ready for Labuan setup | OK paying 10 % PIT for 6–12 mos, wants vibrant startup energy |
| Remote exec (150 k+) | Considering MM2H, needs international schools | Enjoys gastronomy adventures, willing to invest in local company |
| Family with toddlers | Trusts private healthcare, likes order & playgrounds in malls | Flexible on language, values nanny cost savings |
| Adventure-driven content creator | Seeks rainforest hikes & diving weekends | Craves mountain loops & chaotic street photography |
7. Two Mini Case Studies
7.1 Julia – UX Designer from Berlin
Situation: 45 k EUR salary, EU passport, wants to kite-surf weekends.
BorderPilot simulation: 4 months Malaysia + 4 in Vietnam, avoiding tax residency in both.
Outcome: Saved 4,800 EUR vs staying in Germany; churned out a new portfolio thanks to unbroken 5G in KL.
7.2 Marcos – SaaS Founder from São Paulo
Situation: 220 k USD profit via Delaware C-Corp, partner and newborn in tow.
BorderPilot insight: MM2H’s 1 M MYR deposit acceptable; child’s education priority.
Outcome: Chose Malaysia, incorporated Labuan branch, effective tax rate <4 %. Visits Vietnam quarterly for dev hiring.
8. Decision Matrix (Score out of 10)
| Criterion | Weight | Malaysia | Vietnam |
|---|---|---|---|
| Visa flexibility | 15% | 7 | 8 |
| Tax friendliness | 20% | 9 | 6 |
| Cost of living | 20% | 7 | 9 |
| Infrastructure | 15% | 9 | 7 |
| Culture & vibe | 15% | 7 | 9 |
| Community size | 15% | 8 | 9 |
| Weighted total | 100% | 7.9 | 8.1 |
Scores tie to within statistical noise; your personal weighting shifts the victor.
9. Final Thoughts
Malaysia is the polished coworking lounge with bottomless lattes; Vietnam is the bustling street café where ideas brew over iced coffee. Both can supercharge your remote career—provided you align visas, taxes and lifestyle demands.
Curious how these variables interact with your income streams and passport quirks? Fire up a free relocation plan on BorderPilot and let our data engine crunch the permutations, so you can focus on what matters: picking between laksa or pho for lunch.