Why do Korean companies plan to stay in Vietnam despite rising labor costs?

Among the companies that said they had no intention of withdrawing, 87.5 percent cited Vietnam’s cost advantage relative to other countries as their main reason for staying.

How much have wages in Vietnam risen, and how does the increase compare with other major Asian economies?

Vietnam’s monthly minimum wage increased from $45.4 in 2010 to $205.3 in 2024. Monthly wages rose by an annual average of 11.4 percent over those 14 years, the fastest pace among major economies in Asia.

What is the outlook for Korean companies operating in Vietnam over the next three to five years?

Nearly 60 percent of surveyed companies expected their operations in Vietnam to improve over the next three to five years, compared with 12.4 percent that expressed a pessimistic outlook. In addition, 72 percent said Vietnam would continue to play the role of a global business hub.

92% of Korean firms in Vietnam wish to stay despite rising labor costs: survey

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Summary

Korean companies operating in Vietnam plan to maintain their businesses there despite rising labor costs and regulatory burdens, a Korea International Trade Association survey released Sunday showed. The survey found that 92 percent had no intention of withdrawing, with 87.5 percent of those companies citing cost advantages over other countries. Nearly 60 percent expected their operations to improve over the next three to five years, while 12.4 percent were pessimistic. KITA advised companies to review their cost structures and adapt their operations to changing business conditions.

Key Facts

Vietnam’s monthly minimum wage rose from $45.4 in 2010 to $205.3 in 2024, an increase of more than 4.5 times.
Monthly wages in Vietnam increased by an annual average of 11.4 percent over the 14-year period, the fastest pace among major Asian economies.
Seventy-two percent of respondents said Vietnam would continue to serve as a global business hub in the future.

By Yonhap

Published Nov 8, 2026 3:29 pm KST

Lotte Mall West Lake Hanoi, a large-scale shopping and entertainment complex in Hanoi's Tay Ho District, Vietnam / Courtesy of Lotte Shopping

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 country.

Among them, 87.5 percent cited "cost advantage relative to other countries" as the main reason for their stay.

The results come despite a sharp rise in wages in Vietnam in recent years, KITA said.

The monthly minimum wage of Vietnamese workers increased by more than 4.5 times from $45.4 in 2010 to $205.3 in 2024, according to the association. Monthly wages have risen by an annual average of 11.4 percent during the 14-year period, marking the fastest pace of increase among major economies in Asia.

Despite increasing labor costs, companies maintained a positive view on the future outlook of the Vietnamese market.

Nearly 60 percent of companies expected their operations in Vietnam to improve over the next three to five years, far outpacing those who expressed a pessimistic outlook, at 12.4 percent.

Seventy-two percent of respondents said they assess Vietnam as continuing to play the role of a global business hub in the future.

KITA advised companies operating in Vietnam to review their cost structure while improving their operations in line with changing business environments in the Southeast Asian country.

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