16:41 | 28/12/2016 Companies
(VEN) - The Korean Chamber of Commerce and Industry in Vietnam (Korcham) is a non-governmental organization, which was established in June 1992 with the goal of supporting their businesses in investing in Vietnam. This organization has significantly contributed to supporting businesses overcome difficulties and improving Vietnam’s investment environment.
Many activities have been organized by Korcham to promote trade in Vietnam
To realize supports for investors, Korcham signed a memorandum of understanding with the Ministry of Foreign Affairs’ Department of Foreign Affairs of Localities. Through its memorandum of understanding, businesses can directly propose their ideas to localities.
Korcham Chairman Ryu Hang Ha said that the Republic of Korea (RoK) has become the largest investor in Vietnam, surpassing Chinese Taipei, Singapore and Japan. The RoK had 5,593 valid projects for total registered capital of more than US$50 billion accumulated by October 2016, ranking first among the 115 countries and territories investing in Vietnam. In particular, RoK businesses have played a key role in the Vietnamese economy when creating jobs for 700,000 workers and contributed around 30 percent to Vietnam’s total exports.
In addition to Kumho Asiana, Posco and Daewoo, Vietnam has attracted the interests of many big names such as Samsung, LG, Lotte and CJ with a series of large scale projects worth several billions of dollars. The signing of the Korea-Vietnam Free Trade Agreement (KVFTA) has contributed to increasing the attractiveness of the Vietnamese market. Not only industries and services, RoK investors have also promoted investment in the agricultural sector to benefit from tariff reduction following KVFTA commitments.
According to Korcham, regular policy changes have posed difficulties for businesses although the Vietnamese government has made greater efforts to improve the laws as well as simplify administrative procedures. Therefore, investors are looking forward to having a unified system of the law and simplified administrative regulations.
Local governments play an important role in investment promotion activities, especially well preparations in terms of infrastructure and human resources. Moreover, local governments have to create favorable conditions in all aspects such as administrative procedures, open and transparent mechanisms and policies in order to meet the needs of investors. Ryu Hang Ha said that there would be a wave of RoK investors to Vietnam in the coming time, with the main presence of small and medium-sized enterprises. Therefore, they need supports from local authorities to make investment decisions.
RoK Financial Services Commission Vice Chairman Jeong Eun-bo:
The RoK Financial Services Commission signed a memorandum of understanding (MOU) with the State Securities
Commission of Vietnam in January 2002, a MOU with the State Bank of Vietnam in June 2006, a MOU on cooperation in
insurance supervision with the Vietnamese Ministry of Finance in March 2012 and a MOU on cooperation with Vietnam’s
National Financial Supervisory Commission in 2016.