South Korea was among the three largest foreign investors in Vietnam during the past three years, according to the Vietnamese Ministry of Planning and Investment (MPI).
The MPI reported that in the first five months of this year, South Korean foreign direct investment (FDI) into Vietnam was estimated at USD2.06 billion, up 12.6 percent on-year.
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Most of South Korea’s major FDI projects in Vietnam were in manufacturing. Authorities in the northern province of Thai Nguyen licensed Samsung Electro-Mechanics Vietnam Co., Ltd to sink an additional USD920 million into its project in Pho Yen Town, raising the project’s total capital to USD2.27 billion in February.
South Korean firms have also increased investment in Vietnam’s real estate sector. By late November last year, real estate projects accounted for 13 percent of the country’s total FDI in Vietnam, double the figure in 2018.
Early this year, Vietnam licensed a USD900-million project of South Korea’s Lotte E&C to develop Lotte Eco Smart City Thu Thiem in HCM City. Meanwhile, YSL Group, another Korean investor, is carrying out an industrial land project spanning nearly 300 hectares in Nam Binh Xuyen, Vinh Phuc province.
South Korean investors are also interested in Vietnamese logistics and warehouse projects.
