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With the pandemic slowing down, Korea-based manufacturer, especially Samsung, has started undertaking efforts to diversify risks as part of its Southeast Asia strategies.
Abstract
Korean firms' outward investment toward the service and manufacturing sectors declined in the wake of the COVID-19 pandemic.
Specifically, their manufacturing investment in the US exceeded that in China for the first time in 2021. However, China remains a major destination for Korea's investment into the manufacturing of electronics components, computers, imaging devices and communication devices while the US and Vietnam are receiving decreasing investment from Korea year after year.
Since the outbreak of the COVID-19, Samsung Electronics has been downsizing its operations in Vietnam while moving part of its production to India. Samsung Electronics' Korean suppliers however are not moving in synchronization in terms of their planning in Southeast Asia.
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