After 30 years, Vietnam has been successful in attracting FDI inflows since innovation (Doi moi) in 1987. The FDI sector has contributed significantly to the economic development of Vietnam. Among these foreign investors, Korea is leading as the bigge...
After 30 years, Vietnam has been successful in attracting FDI inflows since innovation (Doi moi) in 1987. The FDI sector has contributed significantly to the economic development of Vietnam. Among these foreign investors, Korea is leading as the biggest investor in Vietnam as evident from the number of projects and registered capital. Korea’s FDI is concentrated in Vietnam reflecting both its strategies and motives for investment. The motivation of Korean FDI is characterized as efficiency and market seeking. Based on this motivation, the paper defines the contributions of Korea’s FDI to economic development in Vietnam in terms of increased employment and export expansion from 2005 to 2015.