Foreign direct investment (FDI) from South Korea into Vietnam so far this year has reached around US$2.4 billion in 203 projects, three times last years figure, Foreign Investment Agency under the Ministry of Planning and Investment (MPI) reported.
With the impressive figure, S. Korea replaced Hong Kong as the biggest investor during the first ten months of the year, to become the number one investor in the Southeast-Asian nation in 2006.
The agency said S. Korean investment mostly focuses on industrial production, construction and tourism.
S. Korea’s leading steel group Posco on November 18 was granted an investment certificate by the MPI for its steel project worth US$1.128 billion in Phu My II Industrial Park in the southern coastal province of Ba Ria-Vung Tau.
Meanwhile Kumho Asiana group has kicked off the US$380-million project to produce tires in the southern province of Binh Duong and it has also invested US$260 million in building hotels and apartments in Ho Chi Minh City.
Lotte Shopping, the biggest retail group of S. Korea, received a permission from the MPI to build 10 modern supermarkets and fast-food restaurants in Vietnam.
FDI into Vietnam this year is estimated to reach the total registered capital of around US$10 billion, a record level much higher than the year target of US$6.5 billion, according to the MPI.
The disbursed FDI in 2006 is expected to rise 24.2 per cent from 2005 to US$4.1 billion with more than half of it in the industrial sector.
In the coming time, Vietnam will pay more attention to attracting multinationals and offer more incentives for foreign investors to build R&D and hi-tech centers.
Experts said that, with great potential for economic development, Vietnam’s FDI picture in the near future will be more diversified with the participation of more investors from Europe and Africa, not only domination of Asian investors like at present.
VNA, Vietnam Financial Times
April 24–25, 2026
Kinh Bac Cultural Center, Bac Ninh Province
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