14:37 | 23/08/2017 Economy
(VEN) - Data compiled by the Korean Chamber of Commerce and Industry in Vietnam (Korcham) shows that about 46.1 percent of companies from the Republic of Korea (RoK) will expand their business in Vietnam, while 71 percent are happy with business performance in Vietnam.
The largest investor
According to the Ministry of Planning and Investment’s Foreign Investment Agency, the RoK had 6,130 projects in Vietnam with total registered capital of US$54.5 billion by June 2017. These account for 25.9 percent of total FDI projects in the country, and 17.7 percent of total capital invested by foreigners. As a result, the RoK has become the biggest investor among 120 countries and territories investing in Vietnam.
The RoK poured US$4.95 billion into Vietnam in the first six months of the year, accounting for more than 25 percent of total capital invested by foreigners. Nguyen Mai, chairman of the Vietnam Association of Foreign-Invested Enterprises, said RoK’s projects have proven efficiency and had a positive impact on Vietnam’s socio-economic development. For example, Samsung has created jobs for around 140,000 local workers with an average personal income of VND7-8 million per month.
Nguyen Mai said that there are small- and medium-sized enterprises from the RoK willing to expand business in Vietnam. The Vietnam Association of Foreign-Invested Enterprises has led a delegation of companies from the RoK to survey the investment environment in Binh Dinh Province’s Nhon Hoi Economic Zone. The survey is expected to pave the way for investors to expand their operation in the power industry.
Korcham Chairman Ryu Hang Ha said that many investors from the RoK have asked Korcham about the Vietnamese investment environment. The areas of most concern are the manufacturing and processing and energy sectors. Vietnam-RoK diplomatic relations, established 25 years ago, have yielded many cooperation agreements, including the Korea-Vietnam Free Trade Agreement, resulting in a significant increase in two-way trade. “Many companies from the RoK are also choosing Vietnam as their new business location, so investment in Vietnam will continue to increase in the future,” Ryu Hang Ha said.
Among the other difficulties he mentioned to doing business in Vietnam were lack of information on key projects and priority areas for investment attraction, and communication hurdles due to language barriers. He also complained that Vietnam’s investment attraction policies are inadequate and said the country needs to ramp up efforts to create a transparent and attractive investment environment in order to attract more investors.
Nguyen Mai, chairman of the Vietnam Association of Foreign-Invested Enterprises, said fast disbursement, modern technologies and good compliance with Vietnam’s policies and laws are the RoK’s advantages.