As of June 8, 2021, Vietnam stands as a thriving hub for Korean enterprises, with an impressive count of around 9,000 Korean companies contributing significantly to the nation’s economic landscape. These companies have collectively invested nearly USD 70.4 billion, a substantial 18.5% of Vietnam’s total foreign direct investment (FDI).
A STRATEGIC LOCATION
Vietnam’s strategic location in Southeast Asia makes it a logistical powerhouse, boasting an intricate network of road, waterway, and airway systems. The nation’s deep-water seaports, designed to accommodate large cargo vessels and cruise ships, facilitate the efficient transportation of goods, not only within Vietnam but also throughout the Mekong sub-region and globally.
A NURTURING ENVIRONMENT
Vietnam’s investment-friendly climate is supported by robust social infrastructure, including modern banking services, a comprehensive telecommunications network, schools, hospitals, and public services. This infrastructure caters to the needs of both the Vietnamese population and foreign businesses operating within Vietnam.
VIETNAM’S YOUTHFUL WORKFORCE
Vietnam’s youthful population, numbering nearly 100 million, offers a valuable asset to businesses. Known for their industrious, intelligent, and creative nature, the young Vietnamese generation plays a pivotal role in the country’s development. For foreign investors, this abundant and high-quality workforce provides a sense of security and confidence.
KOREA’S INVESTMENT IN VIETNAM
Korea has emerged as a prominent investor in Vietnam, with over 9,000 Korean enterprises funneling nearly USD 70.4 billion into the country (as of October 2020). This massive investment accounts for 18.5% of Vietnam’s total FDI. In the first ten months of 2020, South Korea ranked second among countries and territories making substantial investments in Vietnam, contributing USD 3.42 billion, closely following Singapore with USD 7.51 billion. In terms of the number of new projects, Korea maintained its top position, with 528 new projects initiated.
KOREAN BUSINESSES SHAPING VIETNAM’S ECONOMY
Korean companies have diversified their presence in Vietnam’s economy, spanning various sectors, including apparel, electronics, infrastructure, energy, automobiles, aerospace, real estate, finance, and banking. These enterprises have been instrumental in the nation’s economic restructuring and have generated employment opportunities for over 700,000 Vietnamese citizens. Despite the challenges posed by the Covid-19 pandemic, the trade volume between the two countries continued to surge, reaching approximately USD 65.1 billion in 2020.
THE TOP 10 LEADING KOREAN COMPANIES IN VIETNAM
1. Samsung Vietnam:
Entering the Vietnamese market in 1996, Samsung Vietnam operates six factories across Bac Ninh, Thai Nguyen, and Saigon, employing hundreds of thousands of Vietnamese workers. In 2020, Samsung Vietnam topped the list of Vietnam’s largest companies, amassing a total revenue of USD 67 billion, equivalent to 25% of Vietnam’s GDP.
2. LG Electronics Vietnam:
Present in Vietnam since 1995, LG Electronics Vietnam specializes in manufacturing mobile devices, audio-visual equipment, home appliances, and refrigerators. It boasts three factories located in Hung Yen and Hai Phong.
3. Lotte Vietnam:
As a multinational corporation, Lotte operates across six sectors, including food, retail, tourism/services, chemicals/construction/manufacturing, finance, and research and development/support. Since its arrival in Vietnam in 1996, Lotte has established numerous well-known subsidiaries.
Renowned for its car and motorcycle manufacturing, Hyundai has effectively invested in Vietnam through collaborations with Thanh Cong Group and Truong Hai, participating in automobile production, assembly, and distribution.
5. CJ Vietnam:
Initially a food business branch of Samsung Group, CJ has expanded its operations in Vietnam since 1998, with interests in diverse fields, including media, television, entertainment, shopping, and confectionery.
With decades of experience in real estate, construction, and textiles, Daewon’s presence in Vietnam includes garment and construction ventures. It is recognized as one of the leading Korean construction companies in Vietnam.
7. Kwang Vina:
Situated in Nhon Trach 1 Industrial Park, Dong Nai, Kwang Vina specializes in fabric trading and dyeing. Its high-quality products cater to both domestic and international markets.
8. Jaeill Vietnam:
A renowned textile and garment company established in Vietnam in 2003, Jaeill Vietnam focuses on the manufacture of yarn, textiles, paper, and board products.
9. Namyang International:
Founded in 1985, Namyang International specializes in fashion garment production and collaborates with famous fashion brands globally, contributing significantly to Vietnam’s economy.
10. Boramtek Vietnam:
Established in 1995 as a subsidiary of Kuroda Electric Co., Ltd., Boramtek Vietnam specializes in manufacturing auto parts, motorcycles, industrial engines, and household tools. It collaborates with major companies like Honda Vietnam, Suzuki Vietnam, and Mitsuba M-Tech Vietnam.
Vietnam’s dynamic business environment continues to attract Korean companies, forging strong partnerships and contributing to the nation’s sustained economic growth.
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