Number of Korean companies in Vietnam from 2019 – 2023

Unit: Enterprises

Source: B&Company Enterprises Database

Areas of operation of Korean companies in Vietnam in 2023

Unit: Enterprises

Source: B&Company Enterprises Database

Korean businesses with significant investments in Vietnam primarily operate in the manufacturing sector, which accounted for 90% of their revenue in 2023. The remaining 10% of revenue is distributed evenly across other sectors such as Wholesale & Retail, Transportation/Storage, Real estate and Construction. Within the manufacturing sector, communication equipment manufacturing leads in revenue, followed by electronic components and boards, footwear, textile products, and others.

Total revenue of Korean companies in Vietnam in 2023 by sectors

Unit: 100% = 106 billion USD

Source: B&Company Enterprises Database

Main Korean companies in Vietnam by revenue

Source: B&Company Enterprises Database

Opportunities and challenges for Korean companies in Vietnam

On December 5th, 2022, Vietnam and Korea officially established a strategic partnership, further strengthening their cooperative relationship[1]. This development opens up more investment opportunities for Korean businesses seeking to enter the Vietnamese market. Vietnam benefits from a strong economic foundation, favorable support policies, a strategic location, and abundant resources. Additionally, the country’s economic growth, along with expansion in sectors such as energy, semiconductors, and infrastructure, presents promising prospects. Vietnam’s focus on large-scale projects, such as nuclear power plants, gas power plants, semiconductor chip manufacturing, and the North-South high-speed railway, creates favorable conditions for major Korean corporations to consider expanding their investments into the Vietnamese market[2].

However, alongside these significant opportunities, Korean investors also face several challenges. Firstly, there is intense competition from investors in countries such as Singapore and Japan, which can make investment more difficult. Cultural differences may also present challenges, as while Vietnamese consumers generally view Korean products favorably, differences in management styles and business practices could lead to friction. Finally, Vietnam’s regulatory environment can be complex, with multiple layers of government and inconsistent enforcement of laws and regulations, which may impact the ease of doing business, especially for foreign investors.

Conclusion

Korean companies in Vietnam have significant opportunities, particularly in sectors like electronics, textiles and footwear manufacturing. However, challenges such as regulatory complexity, local competition, cultural differences, will become a hurdle for investors. By leveraging the strong cultural ties between the two nations and tapping into Vietnam’s growing economy, Korean companies can expand their market share while maintaining awareness of the local business landscape.

[1] The Government News (2022). Vietnam – South Korea Elevates Relations to ‘Comprehensive Strategic Partnership <Access>

[2] Business Forum Magazine (2025). The New ‘Taste’ of South Korean Investors <Access>

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