Samsung is continuously looking to expand its activities in Vietnam, photo Le Toan

At last week’s meeting between Prime Minister Pham Minh Chinh and leaders of 35 of South Korea’s largest corporations, businesses made numerous recommendations related to policy stabilisation, legal framework improvement, the Investment Support Fund, simplifying import-export procedures, and modernising the logistics and tax systems.

Many also mentioned funding opportunities and raised recommendations in areas such as semiconductors, high technology, green energy, automobiles, liquefied natural gas, biotechnology, and more.

Ko Tae Yeon, chairman of the Korean Chamber of Commerce in Vietnam (KoCham), appreciated the status of Vietnam in the global supply chain and its close cooperation with South Korea.

“Attracting foreign investment in semiconductors, AI, and green energy will help Vietnam to become a leader in the high-tech sector,” he said. “South Korean businesses are ready to cooperate in these areas in the near future.”

Yeon said that such businesses can also participate in design, manufacturing, and human resource training in key projects such as the North-South high-speed railway and nuclear power.

KoCham and South Korean businesses wish to contribute to Vietnam’s development on its journey to become a global investment hub by fostering sustainable green economic development and innovation.

Despite many difficulties, over 80 per cent of South Korean businesses believe that the Vietnamese government effectively responds to external fluctuations, according to a KoCham survey. They have confidence in Vietnam’s diplomatic capabilities and foreign support policies.

Na Ki Hong, newly-appointed president of Samsung Vietnam, said that many foreign investors appreciate the Vietnamese government’s Investment Support Fund as they consider it an effort to protect them. Many countries now consider the development of the semiconductor and AI industries as matters directly linked to national security.

“They are preparing many diverse support policies at the government level,” he said. “Vietnam is also following this trend and is considering various incentive policies, including the Law on Digital Technology Industry. Samsung and other businesses are paying a lot of attention to this, and policymakers should prioritise the development of substantial preferential mechanisms to reassure high-tech businesses.”

South Korean businesses operating in Vietnam are increasing in number, with expanding scale and increasing diversity. While total global investment is dropping, registered South Korean funding in Vietnam is still rising.

South Korean semiconductor manufacturer Amkor Technology is applying to raise the capacity of its $1.6-billion factory in the northern province of Bac Ninh from $1.2 billion to $3.6 billion products annually. The factory has been in operation since Q3 last year and gained $13.5 million in export value in 2024.

The expansion will include the installation of machinery and equipment, plating lines, plating wastewater pretreatment modules, and a gas treatment system generated from the plating line.

Samsung Vietnam, meanwhile, plans to expand its activities in new fields and has asked for continued support in its operations from the government. In February, at a private meeting with the prime minister, its leader stated the company’s intention to expand capital in new fields, and become an integral part of the digital transformation in Vietnam.

Conglomerate Hyosung has poured about $4 billion in Vietnam, including a biotechnology manufacturing plant and a carbon fiber plant in Ba Ria-Vung Tau province, with a total investment of $1.3 billion. The group plans to continue expanding its investment in building data centres, manufacturing high-tech industrial materials, and sustainable biofuels.

Hyundai Motor and Lotte Group have also been expanding investment in fields such as automobile manufacturing, retail, and entertainment.

In January, LG received approval to add $1 billion to the LG Display factory in the northern port city of Haiphong to raise its total investment to $5.65 billion.

Last year, South Korean businesses pumped $7 billion into Vietnam, a 37.5 per cent increase compared to 2023, bringing the accumulative foreign capital in the country to $92 billion. There are around 10,000 South Korean companies in Vietnam, which have created more than 900,000 jobs.

Prime Minister Pham Minh Chinh hoped that South Korean investors would continue to improve production and business activities in Vietnam and consider it as a key hub in their supply chain, as well as accelerate advanced tech transfer.

“South Korean enterprises should expand in new technologies, high-tech industries, and clean technologies that offer high added value and boost the global production and supply chain,” the PM said.

He called on South Korean businesses to invest in semiconductors, AI, renewable energy, digital finance, biotechnology, smart manufacturing, and the digital economy while encouraging cooperation in processing and manufacturing, real estate, infrastructure, telecommunications, tourism, culture, and entertainment.

The PM also encouraged South Korean businesses to share their experiences to utilise the startup ecosystem by supporting venture capital funds and connecting startups from both countries, while participating in Vietnam’s innovation centres and establishing more research and development centres.