realistically, they'd probably set it in one of Marvel's fictional countries that they would legally be able to use at the time and just retrofitted to their purposes, assuming the same film-rights sell-off from OTL still happened. after all, it wasn't "just any" terrorists that abducted Tony in the movie, it was the Ten Rings, also from the comics
Honestly, this leaves either Sin-Cong/Siancong or Madripoor then. Sin-Cong would be too much like Vietnam for it to work really well. Like, it'd be a bit too obvious and it might kinda make it harder to make it be taken seriously. Madripoor meanwhile works better and could stand as this sort of counterpart to Hong Kong and Singapore. Heck, would work well being this secret base of operations that would allow the Ten Rings to function as a global syndicate and wanting to go after Tony's weapons!