In recent years, foreign direct investment (FDI) from South Korea into Vietnam has been increasing strongly and has risen to become one of the largest sources of capital in the Vietnamese market. Not limited to traditional sectors like electronics and garment manufacturing, South Korea is also intensifying investment in high technology, real estate, renewable energy, and smart urban infrastructure. So what makes Vietnam an ideal destination for Korean investors? And what do businesses need to prepare to welcome this strong wave of FDI?

Potential for FDI Growth from South Korea in Vietnam

Investment from South Korea is no longer a new story, but it is entering its strongest growth phase with many positive signals from both governments.

Sectors Attracting Korean FDI

According to reports from the Foreign Investment Agency, as of 2025, South Korea maintains its position among the leading countries with the largest FDI contributions in Vietnam. The top sectors of interest include:

Processing and manufacturing: led by major conglomerates such as Samsung, LG, Hyundai…
High technology and semiconductors: capturing global trends, many Korean companies are relocating production from China to Vietnam.
Real estate and construction: especially in large urban areas and industrial zones.
Retail and consumer goods: Korean supermarket systems and convenience store chains are rapidly expanding.
Renewable energy: many large-scale solar and wind power projects are being strongly invested in Central and Southern Vietnam.

Important Legal Notes When Welcoming Korean FDI Flows

Good legal preparation helps Vietnamese businesses receive Korean investment in an effective, sustainable, and safe way in the long term.

Investment Advisory and Legal Structure from the Beginning

Vietnamese enterprises should proactively research and carefully prepare cooperation models, capital contribution structures, management rights, and exit strategies before engaging with Korean investors. Clear planning helps avoid risks of conflict later, especially when differences in management style and corporate culture may create “blind spots” in cooperation. Business lawyers need to assist in preparing documents such as investment proposals, joint venture agreements, company charters, and clauses protecting the rights of all involved parties.

Compliance with Vietnamese Investment and Foreign Exchange Laws

Korean investors must comply with the regulations in the Investment Law, Enterprise Law, and related guiding documents on foreign investment activities, such as registration for Investment Registration Certificate (IRC), Enterprise Registration Certificate (ERC), capital contribution registration, opening direct investment capital accounts at banks, and full fulfillment of tax obligations. Therefore, having a legal advisory unit regularly is necessary so that enterprises do not fall into the situation of suspension, license withdrawal due to procedural errors.

Clear Contracting and Protection of Rights in Case of Disputes

In practice, many Vietnamese companies cooperating with Korean investors via joint ventures or franchising without sufficient legal consultation lead to conflicts over profit sharing, intellectual property rights, or exclusivity issues. Drafting contracts, building dispute-resolution clauses, and choosing a resolution mechanism (court or international commercial arbitration) need to be done carefully and transparently. This is an important part of ensuring long-term development and minimizing potential legal risks.

DEDICA – Accompanying the Korean Investment Wave into Vietnam

As a law firm specializing in investment and corporate legal advisory, DEDICA is proud to have supported many Korean investors to establish companies, complete investment procedures, obtain construction permits, and implement projects in Vietnam. With a team of lawyers deeply understanding the Korean market and fluent in Korean, we not only provide legal services but also serve as a cultural bridge, helping both parties understand each other and cooperate effectively. Whether you are a Vietnamese enterprise seeking investment from Korea, or a Korean investor wanting to “place trust in the right place” in Vietnam – DEDICA is ready to accompany, ensuring the investment journey is convenient, sustainable, and lawful.

The Korean FDI capital flow is not only an opportunity but also a challenge if enterprises are not well-prepared in legal aspects, strategy, and cooperative mindset. To effectively utilize this resource, businesses need to proactively approach legal consulting experts, build a transparent and long-term cooperation foundation. Let DEDICA be your trusted legal companion on the journey of integration and sustainable development.

Contact DEDICA Law Firm for in‑depth legal advice!
📞 Hotline: (+84) 39 969 0012 (Support via WhatsApp, WeChat and Zalo)
🏢 Head Office: 144 Võ Văn Tần Street, Xuân Hòa Ward, Ho Chi Minh City (144 Võ Văn Tần, Võ Thị Sáu Ward, District 3, Ho Chi Minh City)
🕒 Working hours: Monday – Friday (8:30 – 18:00)
Contact now to receive the first free consultation from our team of professional lawyers!