Korean investors eye advanced sectors in Vietnam

Vietnam is encouraging greater investment in high-tech, energy, and infrastructure sectors. VIR’s Nguyen Kim spoke with Ko Tae Yeon, chairman of the Korea Chamber of Business in Vietnam, about the investment outlook for South Korean businesses and the opportunities for Vietnamese enterprises to deepen cooperation.

- Nguyen Kim

South Korean foreign direct investment is shifting from low-cost, labour-intensive outsourcing towards high-technology, renewable energy, and AI. What's behind this?

South Korean investors have strong advantages in technology, energy, infrastructure, and AI, and have been working with local authorities to encourage and explore potential investments. Especially, during the South Korean President Lee Jae Myung’s state visit to Vietnam in late April, several substantive working sessions and exchanges were held to unlock opportunities in these sectors. While many large corporations from Taiwan and China are also increasing their investments in these sectors, our businesses have distinct competitive strengths. They have comprehensive experience in semiconductors, AI, energy, and transportation.

At the same time, the South Korean government has implemented numerous supportive policies for leading enterprises, which means that companies rely on their own capabilities, and are simultaneously be backed strongly by the government.

Firms such as Samsung are pioneers in semiconductor investment in Vietnam. They are known for making quick and decisive decisions, even when your country’s infrastructure is not yet fully developed. In addition, the South Korean business ecosystem features an excellent and well-synchronised supply chain, supported by a wide network of vendors. This enables them to confidently deliver projects on schedule.