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 staggering 92% of Korean firms currently operating in Vietnam expressed their intention to remain despite escalating labor costs and regulatory challenges, according to a recent survey conducted by the Korea International Trade Association (KITA). The survey revealed that the majority of these Korean companies, 87.5%, attributed their decision to stay to the significant cost advantage they enjoy in comparison to other countries.
This viewpoint held even as Vietnam witnessed a substantial rise in wages over the past decade. The monthly minimum wage for Vietnamese workers surged by over 4.5 times, from $45.4 in 2010 to $205.3 in 2024, with an annual average increase of 11.4% during the 14-year period, marking the most rapid rate of increase among major economies in Asia.
Despite these rising labor costs, companies maintained an optimistic outlook on Vietnam's economic future. Nearly 60% of the surveyed firms anticipated an improvement in their operations in the Vietnamese market.
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.
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