Korean President visits Vietnam: Projects up to billion USD are about to be invested in Vietnam

Share the info

In Jun 2023, the Ministry of Planning and Investment of Vietnam, the Ministry of Industry and Trade of the Republic of Korea and the Chamber of Industry and Commerce of the Republic of Korea chaired the organization of the Vietnam – Korea economic forum 2023 reflect the 30 years of relationship and discuss the new strategy for Vietnam and Korea cooperation in the future, to promote the Korean investment into Vietnam.

According to the Director of the Foreign Investment Department, Ministry of Planning and Investment, despite the difficult world economic context, Vietnam’s GDP growth in 2022 will still reach over 8 % and the first quarter of 2023 is more than 3%. Although this number is not high, this is the effort of the entire political system in providing timely solutions in difficult economic conditions.

Accordingly, the bright spot of Vietnam’s economy in the first 5 months of the year, inflation tends to decrease, domestic demand and consumption tend to increase, the exchange rate remains stable. These macro figures will be the momentum to support growth for the Vietnamese economy in the last months of the year.

Regarding the assessment of the investment environment of Vietnam by international organizations, the leader of the Foreign Investment Department informed that, according to a survey by Eurocham in the first quarter of 2023, Vietnam is in the top 5 investment destinations for investors to set up company in Vietnam.

Over the past 6-7 years, Korea has always been the leading foreign investment partner in investing in Vietnam, surpassing Singapore. Particularly, in the first 5 months of 2023, according to the Foreign Investment Agency (Ministry of Planning and Investment), Korean investors invested 666.52 million USD into Vietnam for investment projects in Vietnam.

On the occasion of the Vietnam – Korea economic forum 2023, the leader of the Foreign Investment Department revealed that dozens of projects of Korean investors are currently waiting to invest in Vietnam and will sign the MOU, which there are projects of hundreds of millions of dollars, and there are projects of up to billions of dollars.

Statistics also show that Korean investment in Vietnam has grown continuously over the past 10 years. Specifically, in 2013, the amount of Korean investment capital reached only 3.8 billion USD. But after only 1 year, it nearly doubled, with 6.1 billion USD in 2014, becoming the largest foreign investor of Vietnam.

Korean investment into Vietnam grows 20 folds

Not only fast growth, Korean investment in Vietnam also has constant stability, for example, in 2015, Korean investment in Vietnam reached 6.72 billion USD, by 2016 it was 7.0 billion USD. ; 2017 it was 8.49 billion USD and 2018 it was 7.2 billion USD; 2019 it was 7.92 billion USD…Hence in the 10-year period (2013-2022), Korean investment in Vietnam has grown from 3.8 billion USD to 81.5 billion USD, increasing to more than 20 times.

Over the last few decades, Vietnam has established itself as an attractive destination for foreign investors looking for opportunities to set up their businesses in Vietnam. The country has an ideal geographical location, with easy access to the rest of Southeast Asia, and is well known for its hospitable climate and world-renowned hospitality that makes it an ideal partner for Korean businesses.

Additionally, the country’s investment climate has improved significantly in recent years, providing a solid foundation for Korean investors to build on. Vietnam’s booming economy presents a great opportunity for Korean investors to capitalize on while doing bussiness in Vietnam. The country is experiencing steady growth, with more and more foreign investment pouring in, and Vietnam’s strong economic growth has led to an increase in its relative competitiveness with the rest of Southeast Asia. In addition, Vietnam is one of the most attractive locations for foreign direct investment (FDI), thanks to its lower labor costs, increasing access to the world market, and regulatory reform. Setting up company in Vietnam will offer Korean investors a prime location from which to expand their business, as well as benefit from its access to growing market and strong infrastructure.

Contact us to schedule your complimentary consultation.

We are available at offices in central of Hanoi, Ho Chi Minh City and Da Nang that help cover through out Vietnam.