Vietnam is expecting a new wave of foreign direct investment (FDI) from the Republic of Korea (RoK) in the wake of the recently signed bilateral free trade agreement (FTA). Many giants from the RoK such as Lotte, Samsung, Kumho, and Taekwang plan to expand their operations here, and this has, in turn, attracted hundreds of foreign investors to the country.
Unlike earlier projects focusing on garments, textiles and footwear, nowadays multinational RoK groups are coming to Vietnam to invest in high technology, electronics, real estate, manufacturing and trade. Accounting for just 5% of RoK’s projects in the country, they represent 70% of total investment capital. According to the Korean International Trade Association (KITA), the majority of Korean companies plan to expand business in emerging foreign markets in 2015 with Vietnam topping the list as the most favoured destination.
