South Korea’s Direct Investment in Vietnam Nears $87.5 Billion with Over 10,000 Projects by June, 2024
SUMMARY:
By June 2023, South Korea had invested nearly US$87.5 billion into Vietnam through more than 10,000 projects.
🔵 Investment Focus: Around 75% of this investment was directed towards manufacturing and processing sectors, which accounted for 25% of the total number of projects.
💼 First-Half 2024 Stats: In the first half of this year, South Korea contributed US$1.4 billion to Vietnam, marking a 16% increase compared to last year. This placed South Korea fourth out of 84 countries in terms of investment.
📅 Cooperation Meeting: These figures were revealed during the first meeting of the cooperation committee between Vietnam’s Ministry of Planning and Investment (MPI) and South Korea’s Ministry of SMEs and Startups, held on August 28 in Hanoi. The meeting aimed to strengthen cooperation between small and medium-sized enterprises (SMEs) and startups in both countries.
🤝 Committee Origins: The committee was established following South Korean President Yoon Suk-yeol’s visit to Vietnam in June 2023, where SME cooperation was a key focus. The goal is to foster collaboration between entrepreneurs in industries where both countries have competitive strengths.
📜 SME Cooperation Agreement: During Prime Minister Pham Minh Chinh’s visit to South Korea in July 2023, a Memorandum of Understanding (MoU) on SME and startup cooperation was signed, opening new opportunities for investment, trade, and innovation.
🌱 Key Sectors for Collaboration: At the meeting, Minister Nguyen Chi Dung expressed optimism about joint projects, particularly in sectors like high-tech agriculture, food processing, pharmaceuticals, semiconductors, and electronics. He emphasized integrating Vietnamese SMEs into South Korean and global supply chains.
📈 Expanding Opportunities: Vietnam also encouraged South Korean businesses to expand into key growth areas such as the digital economy, green economy, and emerging industries like AI, hydrogen, and semiconductors.
🌍 Future Plans: Minister Oh Young Joo from South Korea highlighted the importance of the meeting for strengthening cooperation and expressed hopes for concrete action plans to implement the MoU.
By June this year, South Korea had invested nearly US$87.5 billion in Vietnam through over 10,000 projects. Investment in manufacturing and processing made up about 75% of the total capital and 25% of the total projects.
In the first half of the year, South Korea contributed US$1.4 billion to Vietnam, ranking fourth among 84 countries, with a 16% increase compared to last year.
These statistics were shared during the first meeting of the cooperation committee between Vietnam’s Ministry of Planning and Investment (MPI) and South Korea’s Ministry of SMEs and Startups, held in Hanoi on August 28. This meeting aimed to boost collaboration between small businesses and startups in both countries.
The committee was formed after talks during South Korean President Yoon Suk-yeol’s visit to Vietnam in June 2023, where the focus on SME cooperation was highlighted. It hopes to build strong connections between entrepreneurs in key sectors where both nations have strengths.
During a visit to South Korea by Prime Minister Pham Minh Chinh in July 2023, an MoU on SME and startup cooperation was signed. This is expected to create new opportunities for investment, trade, and innovation in both countries.
At the meeting, Minister Nguyen Chi Dung expressed confidence that the committee, with support from research institutes and SME associations, would create successful joint projects, especially in high-tech agriculture, food processing, pharmaceuticals, semiconductors, and electronics. He also stressed the importance of integrating Vietnamese SMEs into both South Korean and global supply chains, reaffirming the ministry’s commitment to supporting business growth.
The meeting provided a platform to discuss the development of SMEs and identify key areas for future support. Vietnam encouraged South Korean businesses to expand into areas where they excel and Vietnam has high demand, such as the digital economy, green economy, and emerging industries like semiconductors, AI, and hydrogen.
Minister Oh Young Joo of the Ministry of SMEs and Startups highlighted the meeting as a key step in improving bilateral cooperation, expressing her hope for concrete plans to implement the MoU.
