Since 1980 in due to the worldwide economic globalization and blocking, world market competition has become increasingly fierce. Enterprises from other countries has began the foreign direct investment for their own survival and profitable maximization. In the circumstances, Korea is not exceptional also, positively develop and strengthen its foreign direct investment.
In recent years, Korea's foreign direct investment obtained a rapid development, the country economic development has greatly affected in 2009, Korea's foreign direct investment achieved $200 billion.
The world trading environments are rapidly changing caused by making local economies into blocks, new protectionism by advanced countries, intense global competitions and global management in line with the speed of those changes is required to become a global company. Foreign direct investment by Korean companies are focused in China mainly but since Chinese modified their economic structure from quantitative growth to qualitative growth thus foreign direct investments into Vietnam is increasing rapidly who has cheap and abundant human and physical resources as an alternative for new investment.
Recently, Vietnam has been growing rapidly and it is expected to continue its rapid growth aided by its entrance into the World Trade Organization (WTO) in 2007. Along side with the economic growth, the Vietnamese purchasing power is increasing and the demand is also increasing. At this time, this study was conducted to analyze the factors deciding foreign direct investments into Vietnam by Korean companies.
This paper to achieve the objective of the study units such as the socialist countries into China around the discussion and analysis of previous studies in Vietnam conducted a survey of overseas companies in Vietnam and overseas expansion of the variables that influence the decisions were derived.
Chapter 2 of this study provides a theoretical foundation was spending overseas. First, research concept and direction of foreign market entry. Second, Review Korean Enterprise's the motivation and the type of foreign market entry. Third, Giving the problems of penetrating foreign markets by Korean companies. Finally, Review overseas expansion strategy of Korean Enterprise. Chapter 3 analyzes the factors of penetrating foreign markets. Originally, observe carefully about Vietnam's economic trends, trade and direct investment status of foreigners and Korean companies. Since then draw the important issues and risk factors of direct investment in Vietnam. Through the research on strategic market penetration of Vietnam by Daewoo Motor and Samsung Electronic, we understand more about the relationship between Vietnam and Korea. Since then draw the deciding factor to the success of penetrating foreign markets. Chapter 4 analyzes and compares the main elements set forth in Chapter 3 and recommend prospects to promote penetrate foreign markets of Korean companies. Chapter 5 of this paper is the summary of research proposal was recommended for the future.