09:30 | 15/12/2016 Economy
(VEN) - The Republic of Korea (RoK) registered more than US$50 billion in foreign direct investment (FDI) in Vietnam with 5,593 valid projects by October 2016, ranking first among the countries and territories investing in Vietnam.
The RoK’s investment capital in Vietnam mainly focuses on high-tech, trade in services and entertainment such as LG Display Hai Phong’s project with total registered capital of US$1.5 billion, specializing in manufacturing and processing plastic OLED display products for mobile devices (phones, smart watches and tablets).
Samsung has invested approximately US$11.2 billion in Vietnam and is planning to invest in energy, shipbuilding and airport projects, while Lotte and its subsidiaries have poured nearly US$3 billion into Ho Chi Minh City. In 2015, Lotte bought a 70 percent stake of the Diamond Plaza project (a joint venture between Vietnam’s Construction Corporation No.1 and the Posco Engineering & Construction Co.). Lotte’s investment in Vietnam will continue to increase as the group is ready to launch key projects that can be adopted in the coming time such as the US$2.2-billion Thu Thiem Eco Smart project.
Regarding the retail sector, Lotte targets to open 60 supermarkets and commercial centers in Vietnam by 2020. Retailer Emart under the RoK’s Shinsegae Corporation is seeking approval to open a second store in Ho Chi Minh City after the inauguration of its first hypermarket in 2015.
Lock & Lock Vietnam General Director Im Kwang Bin said that Vietnam is considered a production center behind China with highlights in terms of young and skilled labor force as well as abundant natural resources. Seizing these advantages, Lock & Lock has invested more than US$150 million to build four factories in Vietnam. With factories in good operation, the company’s products have been sold in Vietnam and have been exported to 117 countries worldwide.
In terms of entertainment, CJ’s CGV has so far poured more than US$120 million into Vietnam and is expected to invest about US$30 million by the end of 2016. CGV currently has 36 cinemas with 235 screening rooms.
According to Association of Korean Businesses in Dong Nai Province Chairman Park Hyun Bae, the Dong Nai is one of attractive destinations in the eyes of RoK investors due to many advantages such as complete infrastructure and adequate transport facilities. RoK businesses expected that after Long Thanh International Airport becomes operational, travel and freight transport will be more favorable.
According to Young A Textile Vina Vietnam Co., Ltd. Chairman of the Board of Directors Park Nosul, the Korea-Vietnam Free Trade Agreement (KVFTA) took effect, opening up many opportunities for businesses. Export markets are expected for expansion, while tax incentives would help make made-in-Vietnam goods more competitive, he said.
There were 34 branches and offices of RoK businesses in the financial sector in Vietnam by the beginning of 2016, including
eight banks, eight securities companies, five insurance businesses, and three financial leasing units in Ho Chi Minh City.
NGOC THAO & THUY DUONG