In January, Korean firms added a total of US$1.25 billion in foreign direct investment (FDI) in Vietnam as well as 30 new projects, according to data from Vietnam’s Ministry of Planning and Investment. This marks a decrease of US$1.91 billion compared to December, which saw US$3.17 billion in registered capital with 42 new projects.
Korean investments accounted for 28.94 percent of total FDI in January, down from 44.24 percent in December.
South Korea remains one of the largest foreign investors in Vietnam, with substantial foreign direct investment flowing into the country in recent years. Korean companies have been attracted by Vietnam’s dynamic economic growth, its strategic location in Southeast Asia, and a highly competitive labour force. South Korean investment spans a wide range of sectors, including manufacturing, electronics, retail, construction, and real estate, as well as services such as finance, logistics, and information technology.
One of the key drivers of Korean FDI in Vietnam is the country’s growing role as a manufacturing hub, particularly for electronics and consumer goods. Major Korean companies like Samsung, LG, and Hyundai have established large-scale operations in Vietnam, leveraging its cost-effective labour force and improving the country’s integration into global supply chains. Samsung, for instance, operates multiple production facilities in Vietnam, producing smartphones and other electronics for global markets. Korean investment has also been pivotal in the automotive sector, with Hyundai and Kia expanding their presence.
The Vietnamese government’s pro-business policies, coupled with trade agreements such as the South Korea-Vietnam Free Trade Agreement (SKVFTA), have further strengthened economic ties between the two countries. As Vietnam’s economy continues to grow and modernise, Korean FDI is expected to remain a key factor in the country’s industrialisation, contributing to both economic development and the transfer of technology and expertise. With sectors such as renewable energy, digital technology, and infrastructure development also attracting increasing investment, South Korea’s role as a major economic partner for Vietnam is set to deepen in the coming years.
See also: List of Vietnam’s Free Trade Agreements