Survey: 92% of South Korean Firms Have No Plans to Leave Vietnam

A survey released by the Korea International Trade Association on November 8 found that 92% of South Korean firms surveyed have no plans to leave Vietnam, while 87.5% cited the country’s cost advantage relative to other countries as their main reason for staying. Despite rising labor costs, nearly 60% expect their Vietnam operations to improve over the next three to five years, compared with 12.4% who have a pessimistic outlook. Another 72% believe Vietnam will remain a global business hub.

South Korean companies’ operations and investment activity in Vietnam.（VietVance）

The association’s survey found that the average monthly minimum wage for local workers in Vietnam rose more than 4.5-fold, from $45.40 in 2010 to $205.30 in 2024. According to the survey data, it increased by an annual average of 11.4% over those 14 years, the fastest rate among major Asian economies.

South Korea is a major source of foreign investment in Vietnam. In the first 10 months of 2026, South Korean investment in Vietnam totaled $5.81 billion, accounting for 18.9% of the country’s total foreign direct investment during the period and ranking second. South Korean companies operate in sectors including electronics, displays, textiles, petrochemicals, logistics, retail, finance, clean energy and digital infrastructure.

Samsung has invested more than $23 billion in Vietnam and employs about 90,000 people. LG has invested more than $8 billion, including $5.65 billion in a display project in Haiphong. Hyosung has committed $4 billion and said it will invest another $4 billion; SK is exploring energy investments in central Vietnam. Lotte, CJ, Doosan and hundreds of supply chain partners also operate in Vietnam.

Source: VietVance