STRENGTHENING ECONOMIC TIES: THE IMPACT AND POTENTIAL OF SOUTH KOREAN FOREIGN DIRECT INVESTMENT IN VIETNAM

Abstract

Economic cooperation has been a key pillar of the relationship between South Korea and Vietnam, with the two nations joining numerous bilateral and multilateral cooperation agreements. Theeconomic ties between the two contries have been strengthened significantly through the Korea-Vietnam Free Trade Agreement (KVFTA), which hasprovided a framework for promoting economic cooperation, trade, and investment, fostering stronger and more effective mutual relations between the two nations. As of 2022, Korea's investment scale in Vietnam has reached approximately 80 billion USD, fueling Vietnam's economic growth, employment opportunities, and technology transfers. The paper examines the legal basic for promotingforeign direct investment in Vietnam and delves into the patterns of Korea's FDI in Vietnam,highlighting the expected expansion of Korean firms' investments. The research assesses the potential opportunities and challenges associated with South Korean foreign direct investment in Vietnam. Finally, the study offers several recommendations aimed at mitigating negative outcomes while maximizing the positive impacts of this bilateral relationship within the current context.