Republic of Korea's major projects expected to drive Vietnam’s FDI surge
Large-scale projects invested by Korean investors in strategic sectors such as semiconductors and energy are poised to give a strong boost to foreign direct investment (FDI) inflows into Vietnam, creating momentum to attract more high-value projects from global investors.
Workers at a wholly Republic of Korea-invested factory. (Photo: VNA)
Hanoi (VNA) 🐲– Large-scale projects invested by Korean investors in strategic sectors such as semiconductors and energy are poised to give a strong boost to foreign direct investment (FDI) inflows into Vietnam, creating momentum to attract more high-value projects from global investors.
FDI maintains strong growth despite global slowdown
FDI inflows into Vietnam has remained vibrant despite the global investment slowdown caused by geopolitical uncertainties and US tariff policies.
According to the Foreign Investment Agency under the Ministry of Finance, in the first seven months of 2025, registered FDI reached over 24.1 billion USD, up 27.3% year-on-year, while disbursed capital hit 13.6 billion USD, up 8.4%.
Notably, adjusted capital surged by 95.3% to nearly 10 billion USD, while capital contributed through share purchases climbed 61% to more than 4 billion USD. The number of new projects, capital adjustments, and share purchase transactions all rose from a year earlier. In July alone, although the number of projects declined compared to June, adjusted capital more than doubled to 1.04 billion USD, while capital through share purchases jumped 84.5% to nearly 790 million USD.
This reflects a trend towards more selective, large-scale deals in mid-year, the agency noted, adding that accelerating FDI inflows demonstrate continued investor confidence in Vietnam’s potential.
At the inauguration of Coherent’s 127 million USD plant in the southern province of Dong Nai, Gary Kapusta, Chief Supply Chain Officer at Coherent Corp, said that the company now employs some 2,000 people in Vietnam and considers the country a central hub for its global production, product development, and photonics technology innovation.
Deputy Prime Minister Nguyen Chi Dung said Coherent’s investment will help Vietnam become a key link in the global semiconductor chain, joining major tech names such as Nvidia, Apple, Google, Qualcomm, Amkor, Marvell, Intel, and Meta.
However, at the Government's regular July meeting, Minister of Finance Nguyen Van Thang acknowledged that Vietnam still lacks major and high-tech projects, with new registered FDI in the first seven months down 11.1% year-on-year to just over 10 billion USD.
Turning Korean investment plans into reality
To attract more FDI, Vietnam needs large-scale, high-tech, and strategic industry projects. In this context, Deputy PM Dung recently chaired a meeting to review and promote Korean investors’ projects in strategic sectors, including semiconductors and energy.
Korean businesses showcase their products in Khanh Hoa province. (Photo: VNA)
This year also marks the 30th anniversary of Samsung’s investment in Vietnam. The Korean conglomerate has invested over 23.2 billion USD in the Southeast Asian country, not only in manufacturing but also in research and development. Its 220 million USD R&D centre in Hanoi, inaugurated in late 2022, underscores Vietnam’s growing role in Samsung’s global strategy. The Government hopes Samsung will expand into semiconductor manufacturing in Vietnam.
Samsung will continue to deepen its partnership with the Vietnamese Government for mutual benefit, while striving to become a trusted and beloved company among the Vietnamese people, said Na Ki Hong, General Director of Samsung Vietnam.
Other Korean giants such as LG, Hyosung, Lotte, Hana Micron, and SK Group are also moving forward with new plans. SK, after investing billions of USD in Vietnamese firms, including Vingroup, Masan, and Pharmacity, is planning three LNG-to-power projects worth over 10 billion USD, alongside initiatives in AI, hydrogen, logistics, green agriculture, and innovation.
LG Energy Solution has also explored investment opportunities in northern Phu Tho province, proposing cooperation in electric vehicle battery production, charging stations, and battery-swapping infrastructure, using official development assistance (ODA) funding from the Korean Government.
Industry experts agreed that if these strategic projects from Korean investors are realised, they will not only strengthen the Republic of Korea's position as one of Vietnam’s top investors but also serve as a catalyst for broader FDI growth, attracting more global technology firms to Vietnam’s strategic industries./.
Vietnamese Minister of Culture, Sports and Tourism Nguyen Van Hung and his Korean counterpart Chae Hwi Young co-chaired a Vietnam – Republic of Korea (RoK) dialogue on cultural industry cooperation in Seoul on August 11, as part of the ongoing state visit by Party General Secretary To Lam and his spouse.
The state visit to the RoK by Vietnamese Party General Secretary To Lam and his spouse was a great success, marking a significant milestone and opening a new chapter in the Vietnam–RoK Comprehensive Strategic Partnership.
Party General Secretary Lam called on the RoK to help enhance the capacity of Vietnamese firms to integrate more deeply into the global supply chains of Korean companies, and to encourage Korean businesses to expand investment in Vietnam, particularly in infrastructure development, high-tech electronics manufacturing, semiconductors, artificial intelligence, renewable energy, and smart cities.
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In the first seven months of this year, retail sales of goods were estimated at approximately 3.05 quadrillion VND, accounting for 76.4% of the total revenue and rising by 7.8% compared to the same period last year.
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