RoK becomes largest foreign investor in Vietnam

06:00 | 22/07/2021 Economy

(VEN) - The Republic of Korea (RoK) ranks first among the 140 countries and territories investing in Vietnam with 9,076 projects for total registered capital of US$71.854 billion.

rok becomes largest foreign investor in vietnam
The RoK poured US$2.05 billion into Vietnam in the first half of 2021

RoK investment at US$2.05 billion in first half

According to the Ministry of Planning and Investment, Vietnam attracted US$15.27 billion worth of foreign direct investment (FDI) in the first half of 2021. This includes US$2.05 billion from the RoK, accounting for 13.4 percent of FDI pledges to Vietnam. Other leading investors include Japan and Singapore.

During the reviewed period, Japanese and Singaporean investors focused on new FDI projects in Vietnam, while RoK pledges were made to existing projects. Specifically, US$750 million was added to the LG Display Vietnam Hai Phong’s project. The additional amount brought the investment capital of the entire project to US$3.25 billion in total, making it the foreign-invested project with the highest value in the port city. LG Electronics is also considering building a new research and development (R&D) center in Vietnam.

In addition to LG Electronics, numerous large RoK corporations operate effectively in Vietnam, such as Samsung, Doosan, Hyundai and Posco. In particular, Samsung has invested nearly US$20 billion in Vietnam, focusing on the provinces of Bac Ninh and Thai Nguyen, and on Hanoi and Ho Chi Minh City.

Prospects of FDI attraction

According to the Institute for International Trade under the Korea International Trade Association (KITA), Vietnam has established itself as one of the most attractive investment markets in Southeast Asia. Exports and investment from the RoK to Vietnam have increased continuously over the years, proving Vietnam’s attractiveness in the eyes of RoK investors.

Speaker of the RoK National Assembly Park Byeong-seug, speaking recently with Vietnamese National Assembly Chairman Vuong Dinh Hue, praised the Vietnamese investment environment. He said more than 8,000 RoK businesses are operating in Vietnam and many others are seeking investment opportunities in the country.

Economists say RoK investors are interested in the Vietnamese investment environment because of the country’s attractive investment attraction policy, improved quality of human resources, and effective measures for Covid-19 prevention and control.

To help RoK investors expand investment in Vietnam, Park said the RoK expects to lift its relationship with Vietnam to the level of a comprehensive strategic partnership. Hue affirmed that Vietnam stands ready to work with the RoK to advance the relationship to new heights and suggested the two countries’ foreign ministries and relevant agencies define the content of cooperation for such partnership level.

Korea Chamber of Commerce in Vietnam (KOCHAM) Chairman Kim Heung Soo said Vietnam has numerous strengths in attracting foreign investment compared to other countries in the region. The Vietnamese investment environment will be more attractive if the tax system is improved and cumbersome procedures are cut, he added.

Nguyen Hoa