RoK investors eye expanded Vietnam presence
RoK investors eye expanded Vietnam presence
According to the Ministry of Planning and Investment, the Republic of Korea (RoK) remained Vietnam’s second largest foreign investor with 9,400 projects and accumulated registered capital of US$80.5 billion as of the end of September 2022. In the first nine months of this year, the RoK ranked 2nd among 97 countries and territories having investment projects in Vietnam with 290 projects and total registered capital of more than US$3.8 billion.
Korean investment by major corporations such as Samsung, LG, POSCO and others have major positive spillover effects on economic growth, export growth and industrial production in Vietnam.
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Do Nhat Hoang, Director of the Foreign Investment Agency under the Ministry of Planning and Investment, praised RoK enterprises’ effective contributions to Vietnam’s socioeconomic development. Notably, capital flows from RoK investors have shifted from basic manufacturing to high-tech industries, energy, banking, financial and high-quality services, and mergers and acquisitions. Many localities in Vietnam, such as the provinces of Vinh Phuc, Bac Ninh, Thai Nguyen and Quang Ninh are hoping to receive more attention from RoK investors.
Vu Thi Kim Chi, Deputy Head of Quang Ninh Province’s Investment Promotion Agency said her province has 12 RoK investment projects totaling US$123.5 in capital, making the RoK rank 9th among 21 countries and territories investing in Quang Ninh. RoK projects focus on the manufacturing and processing industry, agriculture and forestry; catering services; wholesale and retail; entertainment and more. Attracting RoK investment is one of the province’s key future orientations, Chi added.
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At a recent forum on promoting investment flows from the RoK into Vietnam, Bae Yong Geun, Vice President of the Korean Chamber of Business in Vietnam (KOCHAM), said Vietnam is an important destination. The RoK is still Vietnam’s largest investor, said Bae, adding that more than 9,000 RoK companies operate in various sectors, such as manufacturing, energy, culture, education, and tourism.
Bae explained that Vietnam has an attractive investment ecosystem, a strategic location in the region, abundant labor resources, an open investment environment with many recently signed free trade agreements (FTAs), and a stable macroeconomy. RoK businesses are eager to turn Vietnam into a large-scale production base, Bae added.
For his part, Koen Soenens, General Sales & Marketing Director of the DEEP C Industrial Zones in Hai Phong City and Quang Ninh Province said the Belgian company that owns the industrial clusters plans to expand to new industrial parks to welcome more large investors, ensuring sustainability standards like the current five parks.
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Soenens said Vietnam must continue to create favorable conditions for administrative procedures, land, and site clearance; provide high-quality human resources and prioritize real estate capital for housing construction for experts and workers. Securing assets and providing convenient public services to RoK investors is extremely important to attract long-term sustainable investment, he added.
The KOCHAM representative suggested that southern provinces need to develop human resources and essential infrastructure. More RoK enterprises wish to invest in these provinces, but barriers in human resources and infrastructure might make them hesitate, he said.
