Korean investors keen on semiconductor, AI, green energy sectors in Vietnam: KoCham

South Korean investors are keen to make investments in the fields of semiconductors, artificial intelligence (AI), and green energy in Vietnam, said Ko Tae Yeon, chairman of the Korean Chamber of Commerce in Vietnam (KoCham).

FDI into these areas is increasingly important as it will help Vietnam rise as a leading nation in terms of high technologies, he told a forum chaired by Vietnamese Prime Minister Pham Minh Chinh in Hanoi on Tuesday. The forum gathered 14 Vietnamese companies and 35 leading Korean corporations.

Ko Tae Yeon stressed that KoCham and Korean enterprises want to contribute to Vietnam's journey to develop an innovative, sustainable and green economy and become a global investment center.

He noted that in the context of many difficulties, up to 82% of Korean enterprises believe that the Vietnamese Government is effectively responding to external turbulences. Korean enterprises have faith in Vietnam's diplomatic capacity and FDI support policies in the coming time.

The KoCham chairman said he hopes Korean enterprises can participate in key projects such as the North-South high-speed railway and nuclear power plants in Vietnam, from design and manufacturing to human resource training.

Na Ki Hong, general director of Samsung Vietnam, told the forum that the Vietnamese government's Decree on Investment Support Fund is highly appreciated by many foreign investors as they consider it an effort to protect investors.

The Samsung executive said countries around the world are considering developing semiconductor and artificial intelligence industries as they are associated with national security, and they are preparing a variety of support policies at government levels.

The Vietnamese government is following this trend and considering a variety of incentive mechanisms, including the Digital Technology Industry Law being compiled by the Ministry of Science and Technology, Na Ki Hong noted

He said priority should be given to building a substantive incentive mechanism to help high-tech enterprises feel secure in making investment decisions.

At the forum, KoCham and Korean businesses made a number of recommendations related to policy stabilization, legal framework improvement, policy support for high-tech industries, the Investment Support Fund, simplifying import-export procedures, modernizing the logistics system, import taxes, and VAT refunds.

They also mentioned investment opportunities and raised recommendations in areas such as semiconductors, high technology (Samsung, LG, Hana Mircon Vina); green energy (SK, Hanwha, Asong); automobiles, LNG and electric vehicle batteries (Hyundai Thanh Cong, Posco); biotechnology, advanced materials (Hyosung); and services, logistics (CJ, Lotte).

Korean businesses operating in Vietnam are increasing in number with expanding scale and increasing diversity in terms of investment fields. In the context of a decline in total global investment, registered Korean investment in Vietnam is still rising.

In 2024, Vietnam recorded $38.23 billion in registered FDI, including $7 billion from South Korea, up 37.5% against 2023 which brought this country's total to $92 billion to date. About 10,000 Korean enterprises are operating in Vietnam, creating more than 900,000 jobs.

There are currently more than 200,000 Vietnamese in South Korea and about 200,000 Koreans in Vietnam.

South Korea is one of 10 countries that have established comprehensive strategic partnerships with Vietnam. The nine others are China, Russia, India, the U.S., Japan, Australia, France, Malaysia, and New Zealand.