Abstract

The paper puts an in-depth study on Korea's technology trade competitiveness with Vietnam, Korea's No. 1 foreign direct investment and the No.1 technology trade surplus country. In addition, it investigates the impact on technology exports according to the type of investment and the purpose of investment in Vietnam when making foreign direct investments. The trade specialization index was used as an analysis tool to analyze the technology competitiveness of specific industries, and multiple regression analysis was applied to examine the causal relationship between foreign direct investment and technology exports by its type and purpose.
 Firstly, a result of the analysis of the trade specialization index reveals that Korea's technology competitiveness with Vietnam was high across all industry sectors. Still, the technological competitiveness of the apparel, accessories, and fur industries is weakening every year.
 Also, Korea's technological competitiveness with Vietnam continues to decline in non-metallic minerals and basic etals from the material industry, which is the basis for high-tech sectors such as the semiconductor industry. On the other hand, a result of regression analysis suggests that the technology exports from Korea have increased in the form of joint investment and decreased when Korean companies invested with the aim of cost reduction when entering the Vietnamese market.
 This study identifies Korea's strong technology competitiveness with Vietnam in each specific industry, but the competitiveness has been weakening in some industries like apparel and material industries. It is also significant in that the impact on domestic technology exports varies depending on the purpose and type of foreign direct investment in Vietnam. It affects Korea's technology exports accordingly.

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