Premia TNC Vietnam Team
Author
Southeast Asia e-commerce expansion strategy leveraging Hong Kong and Singapore holding structures, with optimized entry plans for Korean companies targeting ASEAN markets like Vietnam and Malaysia.
Why the Southeast Asian E-Commerce Market Matters Now
As of 2025, Southeast Asia is emerging as a new powerhouse in the global e-commerce market.
In particular, Vietnam, Malaysia, and Indonesia have large young populations and are rapidly expanding their mobile-centric digital consumption, leading to rapid growth in their online shopping markets.
- Vietnam: Mobile shopping explodes, driven by Shopee and TikTok Shop.
- Malaysia: Credit card penetration and government support ensure a stable online payment infrastructure.
- Indonesia: The world’s fourth most populous country with a large domestically driven e-commerce market.
For Korean companies seeking to enter these regions, a holding structure is the optimal strategy, considering cost, risk, and scalability simultaneously.
Choosing a Market Entry Strategy: Direct Entry vs. via a Holding Company
|
Areas to Compare |
Entry to Vietnam |
Hong Kong or Singapore Holding Company |
|
Laws and Administrative Procedures |
Direct response to local regulations. |
Utilizing international standards in the legal system. |
|
Tax and Accounting Structure |
Double taxation concerns and foreign exchange regulations. |
Utilizing international tax treaties to optimize taxation. |
|
Risk Management |
Local political, foreign exchange, and tax risks. |
A decentralized global financial network. |
|
Market Scalability |
Focused on the Vietnamese market. |
Easy expansion throughout Southeast Asia. |
|
Management Complexity |
Straightforward structure. |
Complex establishment and management, but stability is guaranteed. |
Hong Kong vs. Singapore: The Ideal Location for Your Holding Company
|
Areas to Compare |
Hong Kong |
Singapore |
|
Tax Environment |
Tax-exemption principle for overseas income and the corporate tax rate ranges from 8.25% to 16.5%. |
Over 100 tax treaties and a 17% corporate tax rate. |
|
Foreign Exchange Regulations |
None, free movement of funds. |
None, transparent and flexible cash flow. |
|
Administrative Reliability |
Good ties with China. |
Specializing in attracting ASEAN and global companies. |
|
Avoidance of Double Taxation |
Inadequate tax treaty with Vietnam. |
Double Taxation Avoidance Treaty with Vietnam. |
|
Regional Suitability |
Optimal for trading in China, Hong Kong, and Taiwan. |
Ideal hub for all of Southeast Asia. |
Key Takeaways:
If you are focusing on entering Southeast Asian e-commerce markets such as Vietnam or Malaysia, a Singaporean holding company is strategically more advantageous.
3 Practical Design Strategies for E-Commerce Success
1. Licensing Considerations for Platform Entry
FDI entities seeking to open stores on Shopee, Lazada, or TikTok Shop in Vietnam must secure:
- E-commerce sublicenses (B2C online sales)
- Trading codes (for import-related sales)
- Product registration (for cosmetics, health supplements, etc.)
Establishing a Singapore or Hong Kong holding company can simplify licensing requirements and enable flexible business structuring.
2. Payment, Exchange, and Fund Transfer Strategy
Southeast Asia relies heavily on local e-wallet systems like MoMo, ZaloPay, and Touch ‘n Go. In Vietnam, strict foreign exchange controls apply, including:
- DPI reporting for dividend transfers
- Documentation requirements for foreign currency movements
Using a Hong Kong or Singapore structure allows profits to flow efficiently to the holding company, minimizing FX risks and optimizing fund transfers.
3. Finance, Accounting, and Corporate Structure
- Local subsidiaries handle sales and operations, minimizing tax exposure.
- The holding company receives royalties for intellectual property and services.
- Profits can be repatriated via a dual-channel structure (license fees + dividends).
Pre-design the accounting and tax framework in line with each country’s laws and treaties. Also, ensure compliance with substance requirements through proper office and staff operations.
Successful Examples of Structural Design
Case 1: Korean Headquarters, Singapore Holding Company, and Vietnamese Distribution Corporation
Products are imported and sold locally in Vietnam. The Singapore holding company charges royalties for trademark and software use to the Vietnamese subsidiary, enabling flexible profit recovery and reinvestment within the group.
Case 2: Korean Headquarters, Hong Kong Holding Company, and Malaysian Platform Seller
A dedicated e-commerce entity operates under the Hong Kong holding company, managing marketing contracts, logistics, and platform integrations. Sales settlements are processed through a Hong Kong account, minimizing foreign exchange risks.
Key Takeaways:
Establishing a Hong Kong or Singapore holding company enables effective risk diversification, tax optimization, and seamless multi-country expansion, far beyond the benefits of simply setting up another legal entity.
Why You Should Prepare Now
The Southeast Asian market is growing rapidly, but competition is intensifying. Entering without a well-structured plan can expose your business to risks related to taxation, capital repatriation, and regulatory compliance.
By establishing the right structure from the start, you can minimize costs, reduce risks, and maximize your long-term return on investment.
Partner with Premia TNC
With local offices in Hong Kong, Singapore, Vietnam, and Malaysia, we provide one-stop support for Korean companies expanding into Southeast Asia, from holding company establishment and tax structuring to e-commerce licensing and accounting operations.
Premia TNC Vietnam Team
Author
Premia TNC Vietnam is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Vietnam and across the region. Premia TNC Vietnam specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
