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With 9,666 projects and over 81.5 billion USD, South Korea is leading among the total 143 countries and territories having investment and business activities in Vietnam.
South Korea invests in Vietnam with 9,666 projects amounting to 81.5 billion USD
According to information from the Ministry of Planning and Investment, as of May 2023, Vietnam has attracted 37,238 effective foreign investment projects, with a total registered capital of 447.65 billion USD from 143 countries and territories around the world.
Among them, South Korea is leading with 9,666 projects, with a total registered capital of 81.5 billion USD. This is followed by countries such as: Singapore with 3,240 projects, with a total registered capital of 73.384 billion USD; Japan with 5,091 projects, with a total registered capital of 69.628 billion USD…
In the first 5 months of 2023 alone, according to the Foreign Investment Department (Ministry of Planning and Investment), South Korean investors have "poured" 666.52 million USD into Vietnam, which is the registered capital of 167 new investment projects, 122 capital adjustment projects and 364 capital contribution, share purchasing projects of investment projects in Vietnam.
Statistics also show that Korean investment into Vietnam has continuously grown over the last 10 years. Specifically, in 2013, Korean investment capital only reached 3.8 billion USD, but just after 1 year, it nearly doubled, with 6.1 billion USD in 2014, becoming the largest foreign investor in Vietnam.
Not only growing rapidly, Korea's investment in Vietnam also maintains stability. For example, in 2015, Korea's investment in Vietnam reached 6.72 billion USD, then in 2016, it was 7.0 billion USD; 2017 was 8.49 billion USD and 2018 was 7.2 billion USD; 2019 was 7.92 billion USD... and so on for a 10 year period (2013-2022), Korean investment in Vietnam has grown from 3.8 billion USD to 81.5 billion USD, increasing by more than 20 times.
Not only increasing in quantity, the quality of Korean investment projects has also seen positive growth. If before, Korean investment projects in Vietnam were mostly of small and medium scale, now there are many projects of leading Korean corporations with projects of up to billions USD such as: Samsung, LG, Posco, Keangnam... Among them, some Korean corporations consider Vietnam as their global production base, the most typical is Samsung.
According to the assessment of functional agencies, with a large total investment capital, Korean businesses have and are contributing positively to the economic - social growth of Vietnam. Specifically, with the presence of Samsung and LG Group, Korean businesses have contributed to the formation and development of the electronics industry in Vietnam, which is now contributing nearly 20% to the total value of the entire industry.
In addition, Korean businesses have supported Vietnamese businesses to participate in the global supply chain when they have more than 250 Vietnamese businesses becoming level 1 and level 2 vendors for Samsung Group... Especially, with the appearance of nearly 10,000 investment projects, Korean businesses have created a large number of jobs for domestic workers, contributing positively to the economic - social development of Vietnam.
Still Room to “Attract” More Korean Investment
Recently sharing with reporters, Mr. Hong Sun - Chairman of the Korean Business Association in Vietnam stated, Korean businesses highly evaluate Vietnam's investment and business environment, especially the green growth strategy that Vietnam is aiming for. Additionally, Korean investors are also interested in high-tech fields in Vietnam, such as semiconductor chip manufacturing, and car batteries.
From a business perspective, speaking at an event in Hanoi in May 2023, Mr. Choi Joo Ho - CEO of Samsung Vietnam, also highly appreciated the investment environment in Vietnam, while affirming, they continue to view Vietnam as an attractive investment destination in the upcoming time.
The interest of Korean investors in Vietnam is also demonstrated by the fact that 205 Korean businesses and investors, including top executives from large corporations such as: Samsung, LG, SK, Huyndai ... have accompanied Korean president Yoon Sul-yeol on his visit to Vietnam from June 22 to June 25.
This underscores that the interest from Korean businesses in Vietnam's investment and business environment is very large. However, for this interest to turn into reality, alongside improving legal infrastructure beneficial for project implementation by investors, economic experts believe that Vietnam needs to continue perfecting its infrastructure, including transportation, electricity in both quality and quantity, to meet the requirements of high-quality projects from Korean businesses.
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