Korean businesses want to participate in key infrastructure projects

South Korea invests nearly 92 billion USD in Vietnam

According to data from the Foreign Investment Agency (Ministry of Finance), by the end of February 2025, Vietnam had attracted 42,478 foreign direct investment (FDI) projects, with a total registered capital of 507.326 billion USD. These projects came from 149 countries and territories around the world, of which Korean investors led the investment in Vietnam with 10,137 projects, with a total investment capital of 91.92 billion USD.

Vietnam attracted investment from 67 countries and territories in the first two months of 2025. Illustrative photo

In the first two months of 2025 alone, 67 countries and territories invested in Vietnam, of which South Korea continued to lead with a total investment capital of more than 1.5 billion USD, accounting for 21.7% of total FDI capital invested in Vietnam, an increase of 5.4 times compared to the same period last year. Singapore ranked second with more than 1.48 billion USD, accounting for 21.4% of total investment capital, down 32.9% compared to the same period. Followed by countries such as China, Japan, Thailand, etc.

Sharing at the Foreign Investment Trends 2025 seminar recently organized by the Vietnam Industrial Park Finance Association, Mr. Ko Tae Yeon - Chairman of the Korean Chamber of Commerce in Vietnam (KoCham) said: In 2024, Vietnam attracted about 38.2 billion USD in foreign direct investment (FDI). This is an impressive investment attraction result despite the global economy facing many challenges.

In particular, according to Mr. Ko Tae Yeon, in 2024, FDI capital from Korean enterprises invested in Vietnam will reach 7 billion USD, an increase of 37.5% compared to the previous year. Currently, there are about 10,000 Korean enterprises operating in Vietnam, creating 900,000 jobs, making a positive contribution to the economy.

“These results show that Vietnam is affirming its important role in the global supply chain. At the same time, they reflect the strong development of the cooperative relationship between Vietnam and Korea,” Mr. Ko Tae Yeon affirmed.

In particular, many large Korean corporations said they would continue to choose Vietnam as an investment destination. Specifically, Mr. Bae In Han - General Director of Hyosung - Korea (Dong Nai), who is also the highest representative of Hyosung in Vietnam, highly appreciated the investment environment in Vietnam and also made a long-term commitment to Vietnam. Mr. Bae In Han said that Hyosung will continue to invest about 1.5 billion USD in Vietnam in the near future.

Hyosung is known to be one of the leading large corporations in Korea with revenue of 16 billion USD in 2023. Hyosung is the 3rd largest FDI partner of Korea in Vietnam, with a total invested capital of about 4.6 billion USD.

Korean enterprises highly appreciate Vietnam's investment environment. Illustrative photo.

Report to the Prime Minister many important contents

Highly appreciating the investment and business environment in Vietnam, Mr. Ko Tae Yeon also pointed out that, according to a survey by KoCham, 73% of businesses believe that trade pressure on Vietnam will increase, especially in the context of major economies in the world implementing tax policies.

“If this happens, many businesses may postpone investment plans and consider shifting to more competitive markets,” Mr. Ko Tae Yeon affirmed.

To increase Korean investment opportunities in Vietnam, according to Mr. Ko Tae Yeon, KoCham reported to Prime Minister Pham Minh Chinh some important contents at the Dialogue event with the Korean business community held in early March 2025.

Firstly , to consolidate Vietnam’s position as a global manufacturing hub, strategic cooperation on trade and tariff policies is extremely important. If Vietnam proactively builds flexible strategies and adjusts import tax regulations appropriately, the confidence of global investors, including Korean enterprises, will be further strengthened.

Second , to promote investment in high-tech industries such as semiconductors and artificial intelligence (AI), it is necessary to improve the legal framework and strengthen policy support. In particular, the Law on Digital Technology Industry, which is being developed by the Vietnamese Ministry of Science and Technology, will be the "key" to helping Vietnam become a high-tech hub in Asia.

Third, when the Global Minimum Tax (GMT) policy is implemented, FDI enterprises expect tax incentives and policy support from the Government. The Investment Support Fund needs to be operated transparently, with clear procedures to ensure that eligible corporations have convenient access.

“At the same time, we hope to have more effective support policies for mid-sized enterprises to maintain global competitiveness,” Mr. Ko Tea Yeon added.

Fourth , to consolidate Vietnam’s position as a global manufacturing hub, it is important to simplify import-export procedures and modernize logistics infrastructure. If the logistics system is upgraded and operated 24/7, businesses will be able to maintain stable and smooth trade activities.

In particular, Mr. Ko Tae Yeon said that one of the most important issues for businesses is value-added tax (VAT) refunds and regulations on domestic import and export taxes.

“Clearly defining the time for tax refunds and maintaining regulations on domestic import and export taxes will help reduce financial pressure on businesses, while enhancing competitiveness in domestic trade. This will encourage many businesses to expand their operations in Vietnam,” said a KoCham representative, adding that Korean businesses want to participate more deeply in Vietnam’s key infrastructure projects, contributing to promoting national economic development.

"We hope that Korean enterprises can play an important role in major projects such as the North-South high-speed railway project and the nuclear power plant project..." - Mr. Ko Tae Yeon affirmed.

Mr. Ko Tae Yeon - Chairman of the Korean Chamber of Commerce in Vietnam (KoCham): For Vietnam to become a leading country in the high-tech sector, attracting FDI into industries such as semiconductors, AI, green energy and smart infrastructure will be increasingly important. Korean businesses are ready to cooperate closely to promote development in these areas.

Nguyen Hoa