Vietnam – Korea Strategic Partnership Elevated: Korea Expands Investment in Vietnam
VNHIIC
Ngày
11/11/2025
Highlights
- As of the end of August 2025, South Korea is the largest foreign investor in Vietnam, with total registered FDI exceeding USD 95.04 billion across approximately 10,264 projects.
- In addition to foreign direct investment (FDI), South Korea also ranks second in terms of Official Development Assistance (ODA) and is the third most active partner in trade and labor cooperation with Vietnam.
- On Vietnam’s side, the Ministry of Finance has proposed various measures to support Korean enterprises, including tax and fee incentives, land-rental reductions, and maintaining regular dialogue mechanisms to address operational challenges.
- The Ambassador of South Korea to Vietnam emphasized that, throughout more than 30 years of bilateral cooperation, Vietnam–Korea relations have grown significantly. The Korean side expects a more open, transparent, and stable tax environment in Vietnam to further encourage new investment inflows.
- Korean businesses consistently appreciate Vietnam’s investment environment, noting that improvements in administrative procedures, infrastructure, and supportive policies have created favorable conditions for expansion and diversification into new sectors.
- Both countries have agreed to promote deeper cooperation in a wide range of industries, including digital manufacturing, high technology, infrastructure development, smart cities, and renewable energy.
Amid global capital shifts seeking secure and high-potential investment destinations, Vietnam continues to maintain strong attractiveness among international investors—particularly those from South Korea. The strengthening economic ties between the two nations have established a solid foundation for Korean enterprises to confidently expand their business operations in Vietnam.
As of the end of August 2025, South Korea had become the leading investor in Vietnam, with total registered FDI surpassing USD 95 billion and more than 10,000 projects nationwide. Furthermore, South Korea ranks second in ODA contributions and is the third most dynamic partner in trade and labor cooperation with Vietnam. These figures not only reflect investment scale, but also demonstrate long-term confidence and strategic expansion plans of Korean corporations in the Vietnamese market.
In an effort to improve the business environment, Vietnam has introduced various support measures for foreign investors, including Korean companies. Specifically, the Ministry of Finance has coordinated with the Embassy of South Korea in Vietnam to organize dialogue conferences with Korean enterprises on tax, customs procedures, and policy solutions relating to taxes, fees, charges, and land rent. Through such dialogues, the Vietnamese Government reaffirms its commitment to listening to and accompanying foreign investors.
From the Korean side, the Ambassador of South Korea to Vietnam highlighted the significant progress in economic, trade, and investment cooperation over the past three decades. He underscored that fostering a favorable tax regime and streamlined investment procedures in Vietnam will be a critical “lever” enabling Korean companies to expand operations while ensuring full compliance with local regulations.
Market-driven evidence shows that Korean investors remain highly positive about Vietnam’s investment environment. The Chairman of KOCHAM stated that Korean businesses value Vietnam’s tax incentives, simplified administrative procedures, and rapidly developing industrial and logistics infrastructure. Beyond traditional sectors such as textiles and footwear, Korean enterprises are increasingly interested in emerging industries, including semiconductors, artificial intelligence, green energy, smart cities, smart agriculture, and infrastructure development. These sectors align well with Vietnam’s sustainable development strategy and leverage Korea’s competitive strengths.
Korean investments have generated hundreds of thousands of jobs and made significant contributions to Vietnam’s GDP and export performance. Notably, Samsung alone accounted for approximately 14% of Vietnam’s total export value last year, contributing substantially to the country’s 7% GDP growth rate.
However, alongside these positive indicators, several challenges remain for Korean companies operating in Vietnam. Common issues include delayed VAT refunds, unclear cost standards, cumbersome procedures for machinery liquidation, complicated rules of origin, and inconsistent regulatory interpretation across provinces. KOCHAM representatives emphasized that these are important areas where Vietnam should continue to improve in order to reinforce investment confidence, transparency, and security for foreign investors.
Acknowledging such feedback, the Ministry of Finance confirmed its commitment to further reviewing and amending the Law on Tax Administration and customs policies under the national reform strategy towards 2030, aligning with international standards and enhancing the overall investment environment. This demonstrates Vietnam’s determination to build stronger long-term trust with Korean and global investors.
The strong confidence expressed by Korean investors in Vietnam’s long-term prospects, combined with the expansion into new, high-value sectors, marks a significant turning point in bilateral investment cooperation. This is not merely an increase in investment volume—it signals a strategic transformation: from quantity to quality, from traditional manufacturing to advanced technology, and from basic cooperation to sustainable and innovation-driven development.
Source: VnEconomy
