A study on the development of direct investment from the Republic of Korea in the Socialist Republic of Vietnam from 2009-2022
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Abstract
Over the past decade, it is undeniable that Vietnam's economy has grown rapidly, transitioning from a low-income country to a middle-income country. It has maintained an average economic growth rate of 6-7 percent per year. One of Vietnam's outstanding economic growth sectors is the foreign direct investment (FDI) sector, which is considered the main driving force behind Vietnam's outstanding economic growth at present. Among the countries worldwide that invest in this sector, South Korea has been one of Vietnam's top investor countries since Vietnam opened up to foreign investment in 1986 through the Đổi Mới policy, eventually becoming Vietnam's largest investor country in 2014. Since 2009, Vietnam and South Korea have been elevating their relationship to a strategic partnership. Furthermore, the signing of the Vietnam-Korea Free Trade Agreement (VKFTA) in 2015 played a pivotal role in contributing to the surge in the value of South Korean direct investments in Vietnam. With this in mind, the purpose of this research is to study the evolution of South Korean direct investment in Vietnam from 2009 to 2022. The aim is to comprehend the growth of South Korean investment in Vietnam and evaluate the current investment landscape.
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