In December 2024, Korea registered 42 new projects with US$3.17 billion in newly registered capital, according to Vietnam’s Ministry of Planning and Investment. This represents an 11 percent increase in the number of new projects compared to November, which recorded 38 new projects and US$336.09 million in newly registered capital.
Year-to-date, Korea has invested in 410 new projects with US$7.06 billion in newly registered capital.
Foreign direct investment (FDI) from South Korea into Vietnam is one of the most significant contributors to Vietnam’s economic development. South Korea is consistently one of Vietnam’s largest foreign investors, with major investments in manufacturing, electronics, real estate, and retail. Key South Korean corporations such as Samsung, LG, and Hyundai have established extensive operations in Vietnam, particularly in electronics production and export-oriented industries. Samsung, in particular, is Vietnam’s largest single foreign investor, operating multiple manufacturing facilities that produce a significant portion of its global smartphone supply.
Vietnam’s competitive labour costs, strategic location, and participation in free trade agreements have made it a prime destination for South Korean investors looking to diversify supply chains and expand in Southeast Asia. Additionally, the Vietnamese government has fostered a favourable investment environment with tax incentives and industrial zones tailored for foreign enterprises. Beyond manufacturing, South Korean investment is growing in sectors like finance, energy, and infrastructure, reflecting the deepening economic partnership between the two countries. This robust relationship is expected to continue driving bilateral trade and investment in the years ahead.
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