10:35 | 03/05/2019 Investment
(VEN) - In recent years, southeastern provinces and cities such as Dong Nai, Binh Duong and Ho Chi Minh City have become attractive investment destinations for businesses from the Republic of Korea (RoK) in fields such as footwear, fiber, textiles, garments and electronics.
The Changshin Vietnam Company Ltd has begun construction of a 14.3ha shoe production facility in Dong Nai Province's Tan Phu Industrial Zone with total investment of US$100 million. The plant is designed to manufacture more than 27 million pairs of shoes per year and is expected to generate 12,000 jobs once its construction is completed next year. This is the largest foreign-invested project so far this year in Dong Nai Province.
In Binh Duong Province, RoK businesses have invested more than US$2.7 billion through about 600 projects. With a more-than-US$2 billion investment project based in the Saigon Hi-tech Park, Samsung Electronics Vietnam has contributed US$3 billion to Ho Chi Minh City's annual export value. Samsung has also cooperated with the Ministry of Industry and Trade to promote support industries through activities such as organizing exhibitions, training consultants and providing Vietnamese companies with assistance and consultancy to help them improve manufacturing capacity and product quality.
Choi Bun Do, Vice President of the Korea Chamber of Commerce and Industry, said the RoK's FDI in Vietnam, in general, and in southeastern provinces and cities, in particular, is concentrated in the industrial sector, distribution, healthcare, education, services, electricity, electronics, information technology, semiconductor and smart city development, instead of sectors using low-cost labor. RoK investors are expecting improvements of administrative procedures and laws related to these fields to ensure effective investment.
According to Choi Bun Do, RoK companies are very interested in support industries, as well as small and medium business models and technology transfer. Southeastern localities, especially Ho Chi Minh City, are also interested in these fields. To ensure effective technology transfer, Vietnamese private companies need to increase investment in research and human resource development.
To attract more foreign investment, from the RoK in particular, southeastern provinces and cities will continue
investing in upgrading infrastructure, for example building roads to industrial zones, highways and wharves.