Guide to Opening a South Korean Company in Vietnam

Vietnam remains a prime destination for South Korean businesses, with bilateral trade reaching unprecedented levels and a steady inflow of South Korean investment across industries such as manufacturing, technology, and real estate. With the implementation of updates to Vietnam’s investment law in 2025, South Korean companies have even more reasons to establish a presence in this thriving market. Here’s a comprehensive guide to navigating the process under the new regulatory framework.

1. Key Changes in the 2025 Investment Law

The 2025 amendments to Vietnam’s investment law bring several advantages and some critical adjustments for foreign investors:

Simplified Licensing Procedures: The application process for investment certificates has been streamlined, significantly reducing approval times.
Expanded Business Sectors for Foreign Investment: Certain previously restricted sectors, such as renewable energy and education, are now more accessible.
Enhanced Incentives for High-Tech Industries: Tax breaks and subsidies for projects in AI, semiconductor manufacturing, and biotechnology.
Stronger Protections for Intellectual Property: Aligned with international standards, ensuring secure operations for tech and innovation-driven businesses.
Regional Incentive Zones: New incentives in lesser-developed provinces, providing opportunities for cost-efficient operations.

2. Why South Korean Companies Should Choose Vietnam

Strategic Partnerships and Economic Collaboration

Vietnam-Korea Free Trade Agreement (VKFTA): Offers favorable tariffs and market access for South Korean products and services.
Cultural Affinity: Close cultural ties and shared work ethics enhance collaboration between South Korean and Vietnamese businesses.

Emerging Industries for Korean Investment

Smart Manufacturing: Vietnam’s push for Industry 4.0 aligns with South Korea’s expertise in robotics and automation.
Entertainment and Media: K-pop and K-drama have created a cultural bridge, fueling opportunities in content creation, entertainment venues, and digital platforms.
Green Energy: With Vietnam targeting carbon neutrality, South Korean companies specializing in solar, wind, and hydrogen technologies are in high demand.

3. Step-by-Step Guide to Setting Up a South Korean Company

Step 1: Market Research and Feasibility Study

Understand Vietnam’s market demands and regulatory framework for your industry. Engage with local partners or consultants to map out opportunities.

Step 2: Prepare Documentation

Key documents include:

Korean business registration certificate (translated and notarized)
Proposed investment plan
Financial statements demonstrating capital capacity
Project location details

Step 3: Obtain Investment Registration Certificate (IRC)

This step includes submitting a detailed business plan and demonstrating alignment with sectors eligible under the 2025 law.

Step 4: Register the Enterprise

Once the IRC is issued, file for the Enterprise Registration Certificate (ERC), officially registering your company in Vietnam.

Step 5: Open a Corporate Bank Account and Contribute Capital

Ensure timely transfer of registered capital into a Vietnamese bank account.

Step 6: Labor and Operational Setup

Recruit local talent and apply for any required work permits for South Korean expatriates.

4. Overcoming Challenges for South Korean Investors

Navigating Local Bureaucracy: Though streamlined, Vietnam’s processes may still require meticulous attention to detail. A legal advisor can expedite these steps.

Finding Reliable Partners: Building trust with local suppliers and partners is essential. Thorough due diligence is advised.

Staying Competitive: South Korean businesses must bring innovation to distinguish themselves in competitive sectors like manufacturing and electronics.

5. How La Défense Law Firm Supports South Korean Investors

At La Défense, we specialize in assisting South Korean businesses entering the Vietnamese market. Our tailored services include:

Investment Registration Support: We ensure your application complies with the 2025 investment law.
Sector-Specific Advice: From manufacturing to green energy, we help position your business for success.
Compliance and Tax Advisory: Stay updated on changing regulations to maintain a competitive edge.
Ongoing Legal Support: Assistance with contracts, labor laws, dispute resolution, and more.

6. Why Choose La Défense?

Bilingual Expertise: Fluent in Korean, English, and Vietnamese, ensuring seamless communication.

Deep Market Insights: Extensive experience helping South Korean businesses thrive in Vietnam.

Proactive Problem Solvers: Anticipating challenges and providing practical solutions.

Commitment to Excellence: Personalized services tailored to meet your unique needs.

By partnering with La Défense Law Firm, South Korean investors can confidently navigate Vietnam’s evolving regulatory landscape and maximize their success in this vibrant market.

For tailored legal advice and expert assistance, contact La Défense Law Firm today!

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