South Korean foreign direct investment in Vietnam: Trends, drivers, and implications

This study examines the current landscape and evolving trends of South Korean foreign direct investment (FDI) in Vietnam using secondary data from Vietnamese authorities and reputable international organizations. The findings confirm that South Korea remains one of the largest investors in Vietnam in terms of both cumulative capital and number of projects, with a strong concentration in manufacturing and processing and a gradual shift toward high-technology sectors and value-added services aligned with digital and green transformation. Drawing on the OLI paradigm, global value chain, and international business strategy frameworks, the study identifies a strategic transition among Korean enterprises from an export-oriented, processing model to a more integrated approach that combines global supply chain optimization, domestic market expansion, and greater localization of inputs. Overall, the analysis provides a comprehensive understanding of the evolving investment strategies of Korean firms in Vietnam and their broader implications for industrial development and economic integration.