The complementary dynamics of a worldwide technology skills shortage and constant global demand for digital innovation are leading to more examples of co-creation, partnering, and supply-chain re-engineering.
Located just 3,000 kilometers away, Vietnam's rich pool of IT talent, cost-effective solutions, and growing expertise in next-gen technologies make it a natural fit for South Korea. As Korean companies pursue aggressive digital transformation strategies, Vietnam offers the innovation capacity they critically need.
Vietnam: The Emerging Answer to Korea’s IT Challenges
South Korea's ambitious drive toward digital transformation and artificial intelligence (AI) leadership is increasingly hindered by a severe IT talent shortage. The generative AI sector alone is expected to expand at a rate of 2 to 3 times faster than the broader AI industry; however, projections indicate a shortfall of over 50,000 tech specialists, particularly in AI and related fields.
Talent scarcity is the most critical issue in key industries central to Korea’s industrial strategy, such as automotive, healthcare, and manufacturing, while also significantly affecting emerging technologies like AI, low-code/no-code platforms, SAP S/4HANA, and AUTOSAR. This gap is not only slowing digital progress but also causing costly delays and operational inefficiencies. Coupled with rising labor costs, this escalating talent gap poses a substantial risk to the country's competitive edge in the global innovation arena.
In response to these challenges, Vietnam has emerged as a vital part of the solution, standing alongside traditional outsourcing hubs like India and China. With its rich IT talent pool and proven expertise in complex software engineering, Vietnam has evolved beyond its traditional manufacturing role, becoming a strategic partner that enables Korean companies to bridge talent gaps and accelerate their digital transformation journeys.
Growing Influence on Korea’s Tech Ecosystem
As the demand for technological innovation and skilled talent continues to escalate, the long-standing strategic partnership between Korea and Vietnam has flourished, positioning both nations to capitalize on emerging opportunities. This deepening collaboration can be exemplified by Korea’s plan to acquire 10,000 Nvidia GPUs to support its national AI strategy.
Samsung stands as a flagship example of this thriving partnership. Since establishing its first manufacturing facility in Vietnam in 2008, Samsung has expanded into screens, cameras, batteries and other wares, now sourcing 30% of its 2024 global revenue from Vietnam. Today, Samsung is expanding its activities in AI and supply-chain operations in Vietnam and is thought to be the largest individual foreign investor in the country. In 2024, it announced plans for a $1.8bn new display plant in northern Vietnam.
Yet, Samsung is just one part of a broader Korea-Vietnam collaboration. Both countries are actively investing in IT skills development and digital transformation programs. Korean companies such as Naver, CJ Olive Networks, KG, and Lotte Data & Information have established development centers in Vietnam, while others, including LG CNS, have formed strategic partnerships with local leaders like FPT to expand their digital capabilities.
At the same time, Vietnamese IT companies are making significant strides in the Korean market. The country’s leading force FPT, in particular, plays a critical role in accelerating Korea’s digital transformation, helping enterprises drive efficiency, innovation, and long-term growth.
Since 2016, FPT has built a strong presence in Korea, with 300 employees across four offices and 2,500 offshore engineers in Vietnam supporting Korean clients remotely. Leveraging its Global Delivery Center (GDC) model, FPT enables Korean enterprises to optimize costs while maintaining high-quality service across a range of technology domains. Today, the tech firm has been successfully providing IT services to major Korean companies, such as LG Electronics, LG CNS, Shinsegae I&C, Shinhan, and more, delivering scalable solutions in ERP modernization, AI development, and automotive software engineering.
This two-way collaboration underscores the depth of the Korea-Vietnam partnership, driving mutual growth and innovation across both markets.
A Thriving, Technology-enabled Nation
Why has Vietnam become such a success when only 40 years ago it had virtually no presence on the technology stage? In brief, it has shown it can deliver affordable solutions at scale. Several factors have fueled this success: a rising pool of skilled talent, youthful demographics, a strategic location near financial hubs, a long export-ready coastline, government-backed education, and research programs, business-friendly policies, and technology specializations in hot areas such as AI, smart vehicles, and enterprise digital transformation.
Vietnam’s dynamic environment has translated into consistent economic growth, with GDP rising by 7.09% in 2024. This success has also acted as a magnet for an influx of foreign money with many tech giants investing in local manufacturing facilities, skills and research programmes, from Amazon and Apple to NVIDIA and, of course, Samsung along with several Korean firms.
Vietnam’s growth would not have been possible without its pioneering companies. Today, the country is home to nearly 74,000 technology operations, solidifying its reputation as a leading hub for innovation in Asia. At the forefront of this growth is FPT, which excels in multiple technology domains, including AI, cloud computing, ERP modernization, and software-defined vehicle development.
Partnering for the Next Wave of Innovation
While low labor costs, investment incentives, and favorable tax policies have contributed to Vietnam’s tech boom, the true catalyst has been its strategic focus on research and development and a laser-like focus on what will constitute the next wave of technologies.
Vietnam currently ranks among the top 40 countries in AI readiness with over 57,000 IT graduates annually, reflecting its forward-thinking approach to innovation. This growing reputation has attracted major global tech players, with NVIDIA announcing plans in 2024 to establish an AI-focused research center in Vietnam, further anchoring the country’s role as a regional AI powerhouse.
The private sector has also been instrumental in advancing this vision. Vietnam’s leading ICT firms like FPT have invested heavily in talent development, creating a robust education ecosystem that nurtures future-ready tech professionals. By operating its own university campuses and specialized training and global internship programs, FPT ensures a steady pipeline of skilled talent in high-demand fields such as AI, semiconductors, and automotive software engineering. This is strengthened by its extensive global partnership network and support from the world’s leading AI experts like Professor Yoshua Bengio of MILA AI Institute and Dr. Andrew Ng of Landing AI. The Corporation is committed to cultivating 10,000 semiconductor engineers and 50,000 AI specialists by 2030.
As global competition intensifies and the race for AI, sustainability, and digital transformation accelerates, Korea needs agile partners. The synergy between Korea’s technological leadership and Vietnam’s growing expertise will create a win-win dynamic—one that promises even deeper collaboration and mutual growth in the years ahead.
