92 pct of S. Korean firms in Vietnam wish to stay despite rising labor costs: survey

Seoul, November 8 (Yonhap) -- A recent survey has revealed that 92 percent of South Korean firms operating in Vietnam intend to continue their businesses in the Southeast Asian country, despite escalating labor costs and regulatory challenges, according to the Korea International Trade Association (KITA). The survey, conducted by KITA, found that 87.5 percent of the surveyed companies cited cost advantage over other nations as the primary reason for their stay in Vietnam.

The rapid increase in Vietnamese wages has also been a notable factor. The monthly minimum wage for Vietnamese workers has surged more than four and a half times, from US$45.4 in 2010 to $205.3 in 2024, reflecting the fastest growth rate among major economies in Asia. Despite the rising labor costs, companies remain optimistic about Vietnam's future.

Around 60 percent of the surveyed firms expect their operations in Vietnam to improve over the next three to five years, significantly higher than the 12.4 percent who foresee a decline. Additionally, 72 percent of respondents believe Vietnam will continue to serve as a global business hub in the future. KITA advised companies operating in Vietnam to reassess their cost structures and enhance their operations to adapt to the evolving business environment in the country.