Vietnam to Receive Billions in FDI from Korea, potentially reaching tens of billions of dollars, according to Do Nhat Hoang, Director of the Foreign Investment Department at Vietnam’s Ministry of Planning and Investment. This announcement was made during the “Vietnam – Korea Enhanced Partnership Week 2024,” organized by the Korea Trade-Investment Promotion Agency.
South Korea has been a leading investor in Vietnam over the past five years, with total direct investment reaching nearly $87.5 billion across more than 10,000 projects as of June 2023. Key sectors include manufacturing and processing, which account for nearly 75% of total registered capital. In the first half of 2024 alone, South Korea invested $1.4 billion in Vietnam, marking a 16% increase from the previous year.
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Vietnam remains a priority partner for South Korea’s development cooperation, receiving about 20% of its total aid. Key areas for development include urban transport infrastructure, education, environment, clean energy, and IT.
Following high-level visits between the countries’ leaders in 2023, major Korean corporations have expressed intentions to invest billions more in Vietnam. The Vietnamese government aims to attract foreign investment selectively, focusing on quality, efficiency, technology, and environmental protection, prioritizing sectors like electronics, renewable energy, and high-tech agriculture.
Vietnam’s commitment to net-zero emissions by 2050 has further attracted interest from investors in renewable energy and green transition. To support this influx, Vietnam has prepared clean land, high-quality human resources, and continues to improve its investment environment and infrastructure.
Korea is also Vietnam’s third-largest trading partner, following the US and China, with expectations for increased Korean participation in major infrastructure and industry projects in Vietnam.
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Source: Vietnam Insider