South Korea has emerged as the top investor in Vietnam with US$60 billion worth of investments in the country as of 2018. This can be attributed to investments from mega companies such as Samsung, LG, Hyundai Motor, SK, Lotte, POSCO, CJ, Hanwha, LH Corp, Shinhan, Kumho, and Hyosung. To top this off, South Korean firms are continually seeking to expand investments in Vietnam due to the improvement in business conditions and implementation of effective policies over the past years.
In fact, during a meeting between South Korea officials and executives and the Vietnamese Deputy Prime Minister Trinh Dinh Dung, it has been elaborated that conducive business policies, have translated into better macroeconomic indicators which in turn allow for other sectors and FDI to grow. Kim Tae Soo, Head of the Economic Development Cooperation Fund (EDCF) has also added that, South Korean investors are interested in the infrastructure, logistics, manufacturing, automobile, agriculture, and food processing sectors within Vietnam. And the EDCF will work to speed up the disbursement of soft loans to help Vietnamese firms conduct projects under a public-private partnership (PPP).
To add to this, the South Korean government also considers Vietnam as the key pillar in its “Look South” policy and South Korea’s linkage to Southeast Asia, Europe, and the Americas.