Measures of decoding and oral language have been shown to predict early reading comprehension across a wide variety of languages, though the timeframe and strength of the predictions vary by orthographic depth. This study is the first to examine predictors of early reading in Vietnamese, a transparent orthography of Romanized letters and diacritics. Eighty-two children in Hanoi, Vietnam, completed measures of decoding and oral language in kindergarten (phonological awareness, PA; rapid automatized naming, RAN; receptive and expressive vocabulary) and measures of decoding and reading comprehension in first grade. Average performance at the end of first grade, after just 1 year of formal instruction, was near ceiling on word reading but more variable on nonword and text reading. Kindergarten PA and RAN (but not vocabulary) predicted first-grade decoding after controlling for maternal education and kindergarten decoding, and PA was a stronger predictor than RAN (10% vs. 4% of unique variance). The best predictors of first grade reading comprehension were first-grade decoding (47% of unique variance) and kindergarten expressive vocabulary (4% of unique variance) after controlling for maternal education. Overall, Vietnamese children became accurate and efficient decoders after 1 year of instruction. Findings from RAN and PA suggest their utility in guiding differentiated instruction on decoding. Kindergarten vocabulary, which differed as a function of maternal education, significantly predicted first-grade comprehension.