HCM CITY — South Korea's investment in Việt Nam has evolved from manufacturing to innovation, positioning the country as a strategic destination for high-value foreign direct investment (FDI), according to Peter Kim, CEO and head of Banking at HSBC Korea.

In an article on the prospects for South Korea-Việt Nam economic cooperation, Kim said the bilateral economic relationship has expanded significantly over the past two decades, driven by large investments from leading Korean corporations and Việt Nam's stable macroeconomic environment.

South Korea is currently Việt Nam's largest cumulative foreign investor, with more than US$95 billion in registered capital across over 10,400 active projects. South Korean-invested enterprises support around 10,000 businesses operating in Việt Nam, create more than 900,000 jobs and account for nearly 30 per cent of the country's total exports.

Bilateral trade between the two countries has also reached approximately $95 billion, with both governments targeting $150 billion in two-way trade by 2030.

Kim noted that Samsung's investment in Bắc Ninh Province in 2008 marked a turning point in bilateral economic cooperation. Today, roughly half of Samsung smartphones sold globally are manufactured in Việt Nam, while the company has invested more than $23 billion and employs around 90,000 workers in the country.

Other major South Korean investors have also expanded their presence in Việt Nam. LG has invested more than $8 billion, including a $5.65 billion display manufacturing complex in Hải Phòng. Hyosung has committed $4 billion and announced plans for an additional $4 billion in investment.

Companies including SK, Lotte, CJ and Doosan are also expanding operations across the energy, retail, logistics and manufacturing sectors.

According to Kim, Korean investment has contributed to Việt Nam's industrial development in key sectors, such as electronics, display manufacturing, textiles, petrochemicals, logistics, retail, financial services, clean energy and digital infrastructure.

He attributed Việt Nam's continued attractiveness to foreign investors to its stable macroeconomic environment, extensive network of free trade agreements and increasingly skilled workforce.

Citing HSBC Global Research, Kim said Việt Nam consistently attracts FDI inflows exceeding 4 per cent of GDP, among the highest levels in ASEAN, while maintaining one of the fastest economic growth rates in Asia.

Kim said that South Korean investment is increasingly shifting toward higher value-added activities, including advanced manufacturing and research and development (R&D).

Samsung's $220 million R&D centre in Hà Nội, its largest in Southeast Asia, employs thousands of Vietnamese engineers working on artificial intelligence, software development and next-generation technologies. This transition is helping strengthen domestic suppliers, enhance technology transfer and develop a highly skilled engineering workforce, he said.

He also highlighted Việt Nam's Resolution 10-NQ/TW on developing the foreign-invested sector, which encourages high-quality FDI, promotes technology transfer and aims to integrate more domestic enterprises into global supply chains.

Kim said these priorities closely align with the long-term investment strategies pursued by Korean companies in Việt Nam, which have increasingly focused on localisation, workforce development and innovation.

According to the HSBC executive, newly registered South Korean investment in Việt Nam increased by more than 30 per cent year-on-year in early 2026, reflecting continued confidence among Korean businesses.

Kim said Việt Nam is entering a new stage of development, evolving from a manufacturing base into an innovation partner for global investors.

He expressed confidence that future cooperation between Việt Nam and South Korea will increasingly focus on research, technology and innovation, contributing to sustainable economic growth and shared prosperity for both countries. — BIZHUB/VNS