92% of Korean firms in Vietnam wish to stay despite rising labor costs: survey
More than 9 out of 10 Korean companies operating in Vietnam said they plan to maintain their businesses there despite rising labor costs and regulatory burdens, a survey released Sunday showed. According to the survey conducted by Korea International Trade Association (KITA), 92 percent of Korean companies operating in Vietnam said they had no intention of withdrawing from the Southeast Asian…
A recent survey conducted by the Korea International Trade Association (KITA) has revealed that 92% of Korean firms operating in Vietnam intend to continue their businesses in the Southeast Asian nation, despite rising labor costs and regulatory burdens. The survey found that 87.5% of the participating companies cited the cost advantage over other countries as the primary reason for their decision to remain in Vietnam. This trend stands out even as Vietnamese wages have surged significantly over the past decade.
According to KITA, the monthly minimum wage for Vietnamese workers skyrocketed by over 4.5 times, from $45.4 in 2010 to $205.3 in 2024. The annual wage growth averaged 11.4% during the 14-year period, making it the fastest increase among major Asian economies. Despite these rising labor costs, the majority of Korean companies surveyed maintained a positive outlook on Vietnam's future market prospects. Nearly 60% of the firms expected their operations in the country to improve.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
