How to Set Up a Korean Company in Vietnam 2025

Vietnam has become a hotspot for foreign investment, especially from South Korea. With strong bilateral ties, the presence of many Korean companies in Vietnam is increasing rapidly. If you are a Korean entrepreneur or a business looking to expand your operations in Vietnam in 2025,this guide will provide you with all the essential steps and important considerations when establishing a South Korean company in Vietnam.

Why Set Up a Korean Company in Vietnam?

Vietnam offers numerous advantages for foreign investors, especially those from South Korea. Some of the key reasons include:

Strategic Location: Vietnam is centrally located in Southeast Asia, offering easy access to other ASEAN countries and China.

Growing Market: With a population of over 97 million, Vietnam is a large and growing consumer market.

Favorable Business Environment: Vietnam has made significant strides in improving its investment climate, including tax incentives and reduced red tape for foreign investors.

Strong Economic Ties with Korea: South Korea is one of Vietnam’s largest foreign investors, with thousands of Korean companies already established in the country.

Types of Business Structures for Korean Companies in Vietnam

When setting up a company in Vietnam, Korean investors have several options depending on their business goals, capital, and risk tolerance. The main types of business entities are:

1. Wholly Foreign-Owned Enterprise (WFOE)

This is a 100% foreign-owned company. It offers full control over operations and is ideal for companies looking to enter the Vietnamese market independently.

2. Joint Venture (JV)

A joint venture involves partnering with a Vietnamese company. This can be an attractive option if you are looking for local expertise, resources, or market access.

3. Representative Office

A representative office is suitable for companies that wish to explore the market or promote their products but do not intend to engage in direct business activities like sales or manufacturing.

4. Branch Office

A branch office is an extension of a foreign company and can engage in business activities such as marketing and sales, but it is subject to restrictions on direct profit generation in Vietnam.

Key Steps to Set Up a Korean Company in Vietnam (2025)

1. Conduct Market Research when Establishing a South Korean Company

Before setting up a company, conducting comprehensive market research is essential. This will help you understand consumer preferences, local competition, potential partners, and the legal landscape. You can also assess which industry sectors offer the best opportunities for your business.

2. Choose Your Business Structure when Establishing a South Korean Company

Once you’ve gathered enough market information, decide on the most appropriate business structure for your company in Vietnam. This decision will depend on factors like your long-term goals, capital investment, and the type of business you plan to run.

3. Register Your Company Name when Establishing a South Korean Company

In Vietnam, your business name must be registered and approved by the Department of Planning and Investment (DPI). Ensure that your company name complies with the Vietnamese regulations and is not already in use by another business.

4. Prepare the Required Documents when Establishing a South Korean Company

The next step is to prepare the necessary documents for your business registration, which may include:

Company Charter (Articles of Incorporation)
Investment Registration Certificate (IRC)
Enterprise Registration Certificate (ERC)
Bank Account with a Minimum Deposit
Leasing Agreement for Office Space

Additionally, for Korean companies, you may need to provide an official letter of introduction from your parent company in South Korea.

5. Submit Application for Investment Registration Certificate (IRC)

For most foreign businesses, applying for an Investment Registration Certificate (IRC) is required. The DPI will review your investment proposal, including details about the project, financial capacity, and the legal status of your business. The process may take 15-30 days depending on the complexity of the business model.

6. Apply for Enterprise Registration Certificate (ERC)

Once your IRC is approved, you can apply for the Enterprise Registration Certificate (ERC) with the Department of Planning and Investment. This certificate will officially recognize your business as a legal entity in Vietnam.

7. Open a Local Bank Account

You will need to open a local bank account in Vietnam to deposit your company’s capital and manage day-to-day financial transactions. Most banks in Vietnam require foreign investors to provide proof of the investment, including the IRC and ERC documents.

8. Register for Tax and Social Insurance

All companies in Vietnam are required to register for taxes with the General Department of Taxation (GDT). This includes VAT, corporate income tax (CIT), and other applicable taxes. Additionally, businesses with employees must also register for social and health insurance contributions with the Social Insurance Agency.

9. Obtain Business Licenses and Permits

Depending on the nature of your business, you may need additional licenses or permits to operate legally in Vietnam. These may include:

Import/Export License (if engaging in cross-border trade)
Construction License (for real estate or infrastructure projects)
Food Safety License (for food-related businesses)

10. Set Up Operations

Once your business is registered, you can set up your operations in Vietnam. This includes hiring local staff, leasing office space, setting up IT infrastructure, and starting production or sales activities.

Cost of Setting Up a Korean Company in Vietnam (2025)

The cost of setting up a company in Vietnam will vary depending on the business structure, industry, and location. On average, foreign investors can expect the following costs:

Legal and Registration Fees: Approximately USD 1,000 – USD 2,500 for registration, licenses, and legal consultations.

Office Rental: Costs vary depending on the location (e.g., Ho Chi Minh City or Hanoi). In major cities, office rent can range from USD 500 to USD 5,000 per month.

Employee Salaries: Wages for local employees vary widely based on industry and expertise. Typically, skilled labor in major cities like HCMC or Hanoi might earn between USD 300 – USD 1,000 per month.

Legal Considerations for Korean Investors in Vietnam

When establishing a business in Vietnam, it is essential to be aware of the legal environment. Here are a few critical points to consider:

Foreign Ownership: While most sectors are open to 100% foreign ownership, some industries may require joint ventures with a local partner, such as telecommunications, media, or banking.

Taxation: Corporate income tax (CIT) in Vietnam is generally 20%. However, there may be tax incentives available for certain sectors like manufacturing or high-tech industries.

Labor Law: Vietnam has a well-defined labor law that protects employees’ rights, including minimum wages, social insurance, and labor contracts.

Setting up a Korean company in Vietnam in 2025 can be a lucrative and strategic move, given the country’s dynamic market, favorable business environment, and strong ties with South Korea. By following the steps outlined in this guide and ensuring compliance with Vietnamese regulations, you can establish a successful business operation in one of Southeast Asia’s fastest-growing economies.

If you’re considering expanding your business to Vietnam, seeking professional advice from legal and financial consultants in Vietnam will help ensure that you navigate the setup process efficiently and legally. Good luck with your business venture!

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