Vietnam-South Korea Trade and Investment: An Overview in 2025

Vietnam and South Korea continue to strengthen their economic partnership, with recent developments marking significant progress in bilateral trade cooperation. The latest agreements and collaborative projects reflect both nations’ commitment to expanding commerce, fostering innovation, and deepening strategic ties in the region.

Following the US$86.7 billion in trade in 2024, Vietnam and South Korea have set an ambitious goal to reach a US$150 billion trade value by 2030, with a focus on high-tech cooperation.

In May 2015, the two countries officially signed the Vietnam-Korea Free Trade Agreement (VKFTA), and over 10 years later, in the “Meet Korea 2025” conference, Vietnam and South Korea’s partnership is now growing to the next level.

South Korean investments in Vietnam

By August 2025, South Korea led in foreign direct investment (FDI) in Vietnam with the highest adjusted registered capital at US$3.009 million, demonstrating strong investor confidence and reinvestment. The country ranked fourth in project count with 278 projects, suggesting that Korean investments tend to be larger in size rather than more numerous. This focus on expanding and strengthening existing projects highlights a long-term commitment to Vietnam’s economic development.

South Korea’s shift in investment toward high-tech and green sectors, along with sustained strength in other industries, highlights Vietnam’s growing role as a key player in its supply chains and as a hub for future technology and sustainable development.

See also: Understanding Vietnam-South Korea Social Security Agreement

Key South Korean investors in Vietnam

Samsung has significantly increased its investments in artificial intelligence (AI) and research and development (R&D) in Vietnam, reaching the milestone of producing two billion smartphones by June 2025. The company is also expanding research centers focused on 5G and AI technologies, with the Galaxy AI project, which develops a Vietnamese-language AI system for the Galaxy S24, serving as a key example of its commitment to innovation in the region.

FIND BUSINESS SUPPORT

Support Economic Development with Asia Trade and Investment Programs

Additionally, SK Group is advancing its commitment to green energy and sustainability. The company has introduced cross-border projects involving natural gas to produce green hydrogen and plans to store CO2 in depleted gas fields, capturing up to 98 percent of emissions. Accordingly, SK Group has proposed three LNG power projects in Vietnam, totaling US$10 billion in investment. This initiative will expand the green growth strategy, aiming to deliver integrated energy solutions throughout Vietnam.

The table below provides a more detailed breakdown of Korean enterprises’ significant investments in Vietnam across various sectors, particularly in electronics and semiconductors, clean energy, and research and development (R&D).

Vietnam-South Korea trade in H1 2025

The trade trends between Vietnam and South Korea in 2025 highlight a shift toward high-tech and automotive industries, with both Vietnam’s exports and South Korea’s imports showing stronger demand for electronics and machinery.

Exports

South Korea remains a major export market for Vietnam, with the top five categories in 2025 including:

• Computers and components (42.73 percent);
• Telephones and accessories (18.59 percent);
• Machinery and equipment (15.51 percent);
• Textiles and garments (13.86 percent); and
• Vehicles and spare parts (9.31 percent).

FIND BUSINESS SUPPORT

Boost Your Growth by Expanding into Asia’s Rapidly Growing Markets

In the first half of 2025, high-tech and automotive products were the main growth drivers. Vehicle and spare parts exports rose to US$898 million, exceeding the full-year 2024 total of US$810 million. Telephones and accessories also expanded, reaching US$1.793 billion in the first six months, with sharp increases noted in May and June. The strongest performance came from computers and components, which nearly doubled from US$2.580 billion in 2024 to US$4.121 billion in 2025, pushing their share above 40 percent of total exports.

Meanwhile, machinery and equipment slipped slightly to US$1.496 billion in 2025 from US$1.598 billion in 2024, reflecting softer demand. Textiles and garments also eased, down 1.33 percent year-on-year to US$1.337 billion compared to US$1.355 billion previously.

The data highlights a restructuring of Vietnam’s exports to South Korea, with rapid expansion in high-tech and automotive categories offsetting declines in machinery and textiles. This shift underlines South Korea’s rising appetite for advanced manufacturing and Vietnam’s growing role as a key supplier in these segments.

Imports

In 2025, Vietnam’s imports from South Korea were concentrated in five main product groups:

• Computers, electronic products, and components accounted for 77.84 percent of the total;
• Machinery, equipment, tools, and spare parts at 10.30 percent;
• Plastic raw materials represented 4.80 percent;
• Petroleum products 3.80 percent; and
• Plastic products 3.27 percent.

High-tech categories continued to dominate the trade structure. Imports of computers, electronic products, and components increased from US$14.777 billion in 2024 to US$17.454 billion in 2025, with notable peaks in March and May, resulting in their share reaching nearly four-fifths of total imports.

FIND BUSINESS SUPPORT

Seamlessly Manage Your Operations Across Multiple Asian Markets

By contrast, traditional categories weakened. Imports of plastic raw materials declined to US$1.076 billion from US$1.122 billion in 2024, while plastic products also fell from US$781 million to US$733 million. Machinery, equipment, tools, and spare parts slipped slightly to US$2.309 billion in 2025, while petroleum products recorded the sharpest contraction, dropping from US$1.333 billion to US$852 million.

The data indicates a clear shift in Vietnam’s import profile from South Korea, with advanced electronics and machinery maintaining their lead, while demand for plastics and petroleum products continues to ease.

Economic impacts and opportunities

Vietnam–South Korea cooperation brings mutual benefits. For Vietnam, South Korean FDI strengthens its role in global supply chains and supports industrial upgrading in high-tech, green, and digital sectors. For South Korea, Vietnam offers a dynamic market, cost advantages, and reliable partners for diversifying supply chains.

Together, both countries benefit from technology transfer, strengthened exports, and opportunities in green energy, digital transformation, and R&D, advancing shared sustainable growth goals for 2025-2030.

• Previous Article Vietnam Targets Fiberboard from Thailand and China: Anti-Dumping Duties, Implications and Strategic Responses
• Next Article Vietnam’s Tourism Industry: Growth Trajectory, Policies, and Opportunities