The New Wave of Investment: Surging Ahead with the RoK

SK Group, the RoK’s second-largest conglomerate with a market capitalization of nearly 200 billion USD, is a global powerhouse, ranking among the top 100 international enterprises. With a diverse portfolio, SK boasts approximately 200 subsidiaries across multiple sectors, generating total revenue surpassing 150 billion USD in 2024. Vietnam has been a key focus for SK, with investments totaling approximately 3.5 billion USD in prominent companies such as Vingroup, Masan, and the pharmaceutical firm Imexpharm, as well as eco-friendly biodegradable materials production initiatives.

Ascending to Leadership

Despite SK’s divestment from Vingroup in early January, the group maintains a positive outlook on Vietnam’s market potential. A month later, SK’s leadership confirmed plans to expand their investments in the country, targeting key sectors such as clean energy (LNG, wind, solar, and hydrogen), pharmaceuticals and healthcare, logistics, and information technology. SK’s growing presence in Vietnam not only injects significant capital but also fosters strategic alliances, technological advancements, and sustainable growth across vital economic sectors.

Real estate is one of the top investment industries from the RoK. (Photo: NDO)

In 2025, Samsung Display, a RoK-based company, bolstered its presence in Vietnam with an additional 1.2 billion USD investment in a new-generation-display manufacturing facility in Bac Ninh. This plant will produce OLED screens for mobile phones, IT devices, and automotive applications, solidifying Vietnam’s position as a global hub for Samsung’s next-generation displays.

Ko Tae Yeon, Chairman of the Korean Chamber of Commerce in Vietnam (KoCham), highlighted the RoK’s strong investment presence in the country. In 2024, out of 114 countries and territories investing in Vietnam, the RoK ranked second, contributing 7.06 billion USD, or 18.5% of total FDI. This figure marked a notable 37.5% increase from 2023. By January 2025, the RoK had risen to the top investor, with total investments exceeding 1.25 billion USD, accounting for 28.9% of total investment—a substantial surge of 13.4 times compared to the previous year. The cumulative investment from the RoK in Vietnam now stands at 92 billion USD.

The RoK’s enterprises are not just capital contributors; they are catalysts for technological advancement, particularly in Vietnam’s high-tech and semiconductor industries. Samsung, a leading conglomerate, has strategically established its presence in Bac Ninh, Thai Nguyen, and Ho Chi Minh City, cementing Vietnam’s position as a vital manufacturing hub in the region. LG, another powerhouse, has been expanding its electronics manufacturing footprint in Hai Phong, and both companies actively collaborate with local partners to forge robust supply chains, benefiting the region’s economic growth.

Vietnam is poised to attract substantial FDI in sectors such as semiconductors, artificial intelligence (AI), and green energy. With the RoK enterprises’ willingness to cooperate closely, Vietnam has the potential to emerge as a high-technology leader. In the near future, RoK firms aim to actively participate in landmark projects, including the North-South high-speed railway and nuclear power development, offering their expertise in design, manufacturing, and workforce training.

Navigating Market Dynamics

According to a KoCham survey, 82% of RoK businesses recognize the Vietnamese government’s effective response to external economic fluctuations, attributing this to its diplomatic prowess and FDI-friendly policies. However, some RoK enterprises exporting to major markets like the US have expressed concerns about potential policy shifts, including tariffs and trade regulations, under the administration of President Donald Trump. Consequently, these businesses have urged the Government of Vietnam to provide support in addressing tariff-related challenges, especially for exports to the US market.

RoK investors are also keenly interested in Vietnam’s infrastructure and logistics improvements. They seek attractive incentives, particularly for high-tech equipment imports, and aim for the reduction of customs, import taxes, and VAT refund-related obstacles. Addressing administrative delays and procedural bottlenecks will bolster confidence among RoK and other foreign investors, encouraging further investment and expansion in the country.

During a roundtable discussion with 35 prominent Korean corporations and businesses on March 4, Prime Minister Pham Minh Chinh emphasized Vietnam’s unwavering commitment to strategic reforms. The government is actively implementing comprehensive measures guided by the principle of “open institutions, seamless infrastructure, and intelligent governance and workforce.” These initiatives aim to reduce costs, enhance product competitiveness, and streamline business operations. Infrastructure development—encompassing transportation, logistics, energy, and digital infrastructure—will be accelerated, and administrative reforms and smart governance initiatives remain high on the government’s agenda.

The prime minister conveyed a special interest in RoK investors and expressed his hope for enhanced cooperation, investment, production, and business activities from major RoK enterprises in Vietnam. He expects these businesses to achieve higher efficiency year after year and offered assurances that their valuable experiences will contribute to the refinement of institutional frameworks and the creation of a more investor-friendly business environment. As part of the long-term strategy, Vietnam stands ready to serve as a pivotal development hub and a critical link in global supply chains, facilitating the transfer of cutting-edge technologies as businesses expand their investments.

The prime minister encouraged Korean enterprises to collaborate with the Vietnamese government and local businesses in high-value sectors, including advanced technology, high-tech industries, and global supply chain connectivity. Additionally, he highlighted investment opportunities in manufacturing, real estate, infrastructure development, telecommunications, tourism, cultural industries, and entertainment. “The Vietnamese government is committed to ensuring that foreign-invested businesses remain an integral part of our national economy,” asserted Prime Minister Pham Minh Chinh. “We will safeguard the legitimate rights and interests of investors while maintaining political stability, public security, and favorable institutional and policy frameworks to attract investment.”