Guide to Set Up a Turkey Company in Vietnam 2025

Vietnam continues to be one of the most attractive destinations for foreign direct investment (FDI) in Southeast Asia, driven by its strategic location, growing economy, and favorable business environment. For Turkey entrepreneurs and businesses looking to expand internationally, Vietnam offers a wealth of opportunities, particularly in sectors such as manufacturing, technology, trade, and services.

Setting up a business in Vietnam can seem daunting due to its unique legal and regulatory environment, but with the right knowledge and guidance, the process can be smooth and successful. This guide will take you through everything you need to know about setting up a Turkey company in Vietnam in 2025.

Why Vietnam is an Attractive Destination for Turkey Company

Vietnam’s economic landscape offers many advantages for Turkey company considering expansion:

• Strategic Geographic Location: Positioned in the heart of Southeast Asia, Vietnam serves as a gateway to the ASEAN market, China, and beyond.

• Strong Economic Growth: Vietnam has maintained impressive economic growth rates, making it one of the fastest-growing economies in the world. This growth is expected to continue, offering ample opportunities for Turkish investors.

• Favorable Trade Agreements: Vietnam is a member of the ASEAN Economic Community (AEC) and has numerous free trade agreements (FTAs) that reduce tariffs and improve market access for foreign investors.

• Young, Skilled Workforce: Vietnam’s young and dynamic labor force is one of the most attractive features for foreign companies looking to establish operations in the country. The workforce is also increasingly skilled, particularly in sectors like technology and manufacturing.

• Government Incentives: The Vietnamese government offers various incentives to foreign investors, including tax breaks, land lease exemptions, and subsidies in priority sectors like renewable energy, high-tech, and manufacturing.

Step-by-Step Guide to Setting Up a Turkey Company in Vietnam

Setting up a company in Vietnam requires careful planning and adherence to the country’s legal framework. Here are the key steps to establish a Turkish company in Vietnam in 2025.

1. Select the Right Business Structure

Choosing the right legal structure is crucial for your business success in Vietnam. The most common structures for foreign companies are:

• Wholly Foreign-Owned Enterprise (WFOE): This structure allows a Turkey company to have full ownership and control of its operations in Vietnam. A WFOE is suitable for businesses that wish to retain complete control over their operations.

• Joint Venture (JV): A JV involves a partnership between a Turkish company and a local Vietnamese entity. This structure can offer local expertise and market knowledge, which is particularly beneficial in industries with high local regulations.

• Branch Office: A branch office operates as an extension of the parent company in Vietnam. This structure is ideal for companies looking to test the market or expand their presence without establishing a separate legal entity.

• Representative Office: A representative office is a non-commercial entity, ideal for market research, networking, and business promotion. However, it cannot generate direct revenue or enter into contracts.

2. Business Registration Process

Once you’ve selected the business structure, the next step is registering your company with the Department of Planning and Investment (DPI) in Vietnam. Here’s a breakdown of the process:

• Company Name Approval: Ensure your company name is unique and complies with Vietnam’s naming regulations. The name must be in Vietnamese and cannot contain offensive or inappropriate terms.

• Prepare Required Documents: These documents typically include the company charter, identity documents of company founders, and proof of the legal status of your Turkish company.

• Application Submission: Submit your business registration application along with the required documents to the DPI. This process can take between 7 to 15 days.

• Approval and Business License: Once approved, you will receive a Business Registration Certificate, which grants you the right to operate in Vietnam.

3. Open a Corporate Bank Account

After your business is registered, you need to open a corporate bank account in Vietnam. This is necessary for managing your company’s finances, paying taxes, and making transactions. Popular banks in Vietnam for foreign companies include Vietcombank, VietinBank, and Asia Commercial Bank.

Documents Required: Banks will typically require your company’s business registration certificate, tax registration code, and identification of the directors.

4. Obtain Tax Registration

Vietnam has a comprehensive tax system, and all businesses must register with the General Department of Taxation. The main taxes you will be required to comply with include:

• Corporate Income Tax (CIT): The standard CIT rate in Vietnam is 20%, although some industries may qualify for tax incentives.

• Value-Added Tax (VAT): VAT is typically 10%, though reduced rates may apply for certain goods or services.

• Personal Income Tax (PIT): This tax applies to employees, both local and foreign, working in Vietnam.

• Other Taxes: Depending on your business activities, you may be subject to additional taxes such as import-export duties, environmental taxes, or property taxes.

5. Hire Employees and Comply with Labor Laws

Vietnam has a highly skilled labor force, and hiring employees can be relatively cost-effective compared to other countries in the region. However, it is important to comply with Vietnamese labor laws, which include:

• Employment Contracts: All employees must sign written contracts, which must adhere to Vietnam’s labor regulations.

• Social Insurance: Employers are required to contribute to the social insurance fund for their employees, including pension, healthcare, and unemployment insurance.

• Work Permits: Foreign employees must obtain work permits to work legally in Vietnam. The process involves submitting various documents to the Vietnamese Ministry of Labor.

6. Industry-Specific Licensing and Permits

Certain sectors in Vietnam require additional licensing or regulatory approval before you can commence operations. For example:

• Manufacturing: Companies involved in manufacturing or production may need environmental permits, land use rights, or specific licenses depending on the type of product being manufactured.

• Retail & E-commerce: Businesses that engage in retail or e-commerce may need to comply with consumer protection laws and obtain specific business licenses.

• Food & Beverage: If your business is in the food industry, there may be health and safety standards and certification processes to follow.

7. Start Operations and Expand

Once all legal formalities are completed, you can begin operating in Vietnam. However, to be successful, it’s crucial to understand the local market and adapt to the Vietnamese business culture. This might involve:

• Conducting market research to identify target customers and demand for your product or service.

• Building local partnerships and networking with local businesses to increase your reach.

• Developing a marketing strategy that appeals to Vietnamese consumers.

Key Considerations for Turkey Company

• Cultural Differences: Understanding Vietnamese business culture is essential for success. Establishing good relationships, being patient, and respecting local customs can go a long way in building trust.

• Legal Support: Navigating the complex legal and regulatory environment in Vietnam requires expert guidance. It’s advisable to hire a local law firm with experience in foreign investment to ensure compliance with Vietnamese laws.

• Local Market Research: Conducting thorough market research is vital to understanding local consumer preferences, competition, and pricing strategies.

Why Choose La Défense Law Firm for Your Investment in Vietnam?

Setting up a company in a new market can be complex, especially for foreign investors. La Défense Law Firm is a trusted partner that offers expert legal services for Turkey company looking to invest in Vietnam. With extensive experience in foreign investment law, La Défense provides tailored solutions to ensure your business is compliant with all local regulations and positioned for success.

Why Clients Choose La Défense Law Firm:

• Expertise in Foreign Investment: La Défense specializes in assisting foreign businesses in Vietnam, offering legal advice on the most suitable business structure, tax compliance, labor law, and dispute resolution.

• Comprehensive Legal Services: From business registration and obtaining permits to advising on mergers and acquisitions, La Défense offers end-to-end legal services for Turkish investors.

• Tailored Advice: Understanding that each business has unique needs, La Défense provides personalized legal strategies that align with your business goals and local market conditions.

• Reliable and Professional: La Défense is known for its transparency, professionalism, and commitment to client satisfaction. The firm has built a reputation for helping businesses thrive in Vietnam’s competitive market.

For Turkey company looking to establish a presence in Vietnam, La Défense Law Firm is your reliable partner in navigating the legal and regulatory environment, ensuring smooth operations and a strong foundation for success.

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