South Korean companies stay in Vietnam despite higher wages
A survey of 113 companies shows that 92 per cent have no plans to leave.
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South Korean companies in Vietnam largely want to remain active there, despite sharply rising labour costs. A survey by the Institute for International Trade of the Korea International Trade Association found that 92 per cent of 113 companies surveyed had no plans to withdraw.
The report comes from the research institute of the Korea International Trade Association. The survey covers South Korean companies operating in Vietnam and measures their own assessment of the business environment, not total foreign investment in Vietnam.
According to the results, Vietnam’s monthly minimum wage rose from 45.4 dollars in 2010 to 205.3 dollars in 2024. In nominal terms, that is approximately 4.5 times as much. The figures say nothing about workers’ purchasing power, because that would also require data on price and exchange-rate developments.
Even so, most of the companies surveyed want to stay. The survey shows that 92 per cent have no plans to withdraw. According to the reporting, the companies point to Vietnam’s position in production, procurement and logistics. The survey therefore primarily measures Vietnam’s attractiveness to this group of companies, not to all foreign companies.
The result does not mean that higher wages are not a problem. Labour costs are only one component of total costs. Companies may respond through automation, higher prices, investment in productivity or a shift of activities to other countries. The survey mainly shows that most of the companies surveyed have no plans to leave. It does not show how they weigh wage increases against other factors.
For Dutch entrepreneurs, the development is particularly relevant if Vietnam is part of an international production chain. Faster wage growth can alter cost structures, but the survey provides no direct picture of Dutch companies, Dutch consumer prices or the profitability of individual companies. That would require company data and Dutch trade figures.
The main conclusion is therefore limited: among the 113 South Korean companies surveyed, most have no plans to leave. This is a snapshot of a specific group, not a forecast for the Vietnamese economy as a whole. Nor does the percentage say how many jobs or how much production the companies represent in Vietnam.
Also show the region and a close-up
Both sides of the figures
▲ Bright spots
- According to the KITA survey, 92 per cent of the 113 South Korean companies surveyed say they do not want to leave.
- According to the companies surveyed, Vietnam remains attractive for production, procurement and logistics.
▼ Concerns
- The nominal monthly minimum wage rose from 45.4 dollars in 2010 to 205.3 dollars in 2024.
- The survey covers only 113 South Korean companies and does not measure the Vietnamese economy as a whole.
Critical note
The wage increase is nominal; without price and exchange-rate data, it does not show how much workers’ purchasing power changed. The 92 per cent is a survey result, not a measure of all foreign companies or total investment in Vietnam.
Who notices what
- Businesses
- Companies with production chains in Vietnam must take higher labour costs into account, but most of the companies surveyed report no plans to leave.
- Workers
- Higher minimum wages may increase incomes, but the source does not measure whether workers are better off in real terms after inflation.
- Investors
- The result shows that most of the companies surveyed have no plans to leave Vietnam, but it is not a forecast for individual companies.
Every point comes from the article’s sources and was included in the fact check.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The stated sample, percentages and wage amounts can be found in Yonhap and a second public source. The text makes clear that these are nominal wages and that the business survey is limited.
- confirmed 92 per cent of 113 South Korean companies in Vietnam have no plans to leave. — Yonhap reports this percentage and sample size. source
- confirmed Vietnam’s minimum wage rose from 45.4 dollars in 2010 to 205.3 dollars in 2024. — The amounts appear in reporting on the KITA report. source
- confirmed The wage increase is nominal and says nothing directly about purchasing power. — This is a methodological interpretation of the stated dollar amounts; the source provides no purchasing-power calculation. source
Editor's note
The article uses a survey of 113 South Korean companies. The result is not representative of all foreign companies in Vietnam and contains no direct figures on Dutch trade or consumer prices.Sources
More on this in Dutch media
- NRC — „vietnam zuid-korea”
- NOS — „vietnam zuid-korea”
- Het Parool — „vietnam zuid-korea”