by position.vn 
Expectations for a Wave of Investment from South Korea in Billion-Dollar Projects
Vietnam is experiencing a significant surge in Foreign Direct Investment (FDI) from South Korea, with diverse investments spanning various sectors. This trend has been accelerated by a recent visit from a delegation of 205 South Korean companies, led by South Korean President Yoon Suk-yeol, who explored investment opportunities during their 3-day official visit from June 22 to June 24. These companies have interests in sectors such as distribution, finance, law, healthcare, information technology, and service industries. Notably, the delegation included CEOs from five major South Korean conglomerates: Samsung Electronics, SK, Hyundai Motor, LG, and Lotte.
The conclusion of the visit saw the signing of numerous memorandums of understanding (MOUs) for cooperation between ministries and businesses from both countries, setting the stage for billion-dollar cooperative projects between Vietnam and South Korea.
Do Nhat Hoang, Head of the Foreign Investment Agency under the Ministry of Planning and Investment, revealed that there is a list of several dozen projects in the pipeline, with some valued at hundreds of millions of USD and others reaching the billion-dollar mark. More details about these projects are expected to be announced in the near future.
The past 6-7 years have witnessed remarkable growth in South Korean investments in Vietnam, with over $80 billion invested in Vietnam by the end of 2022, making South Korea the largest foreign investor in Vietnam. This impressive figure marks a 21-fold increase compared to a decade ago when South Korean investment in Vietnam stood at $3.8 billion. In late 2022, Vietnam and South Korea elevated their bilateral relationship to a Comprehensive Strategic Partnership, ushering in a new chapter in their ties.
Numerous significant projects by South Korean investors have been established in Vietnam. These include the Posco steel production plant project with a registered capital of $1.126 billion, the construction of the $1 billion Landmark Tower office and hotel complex by Keangnam Group, and the $500 million project for the construction of the Hanoi Plaza 5-star hotel twin towers and high-end office space by Charmvit Group, among others.
Initially, South Korea heavily invested in Vietnam’s textile and garment industry. However, in recent years, South Korean capital has diversified into sectors such as construction, real estate, distribution, retail, office space, hotels, insurance, and most notably, high technology.
Kim Bong-man, Head of the International Affairs Committee at the Federation of Korean Industries (FKI), projected that bilateral trade between South Korea and Vietnam would double to $150 billion by 2030, underlining the robust economic relationship between the two nations.
Currently, there are 9,000 South Korean businesses actively investing in Vietnam, not only in traditional sectors but also venturing into emerging fields such as artificial intelligence, information technology, the environment, green growth, and renewable energy. Additionally, South Korean enterprises have shown a keen interest in circular economy models, green transportation, and carbon emissions reduction in Vietnam.
Vietnam’s strengths, including its abundant labor force and participation in numerous international free trade agreements, make it an attractive destination for foreign investors, particularly those from South Korea. The Vietnamese government is actively improving the investment and business environment, with a particular focus on high-tech sectors, electronics, semiconductors, and renewable energy.
Collaborative agreements between Vietnamese and South Korean corporations, such as the Vietnam-Korea Techno Park Complex, signify the strengthening technological partnership between the two nations.
In conclusion, South Korean investors are drawn to Vietnam’s thriving economy and the promising opportunities it offers. This surge in investment marks a significant development in the economic relationship between Vietnam and South Korea, paving the way for fruitful cooperation in various sectors.
