Forum: Promoting investment flows from South Korea to Vietnam

Written by Media Outreach

HANOI, VIETNAM - Media OutReach - 19 October 2022 - South Korea has been, is, and will be the leading investor in Vietnam. The two parties can cooperate to achieve "Dual Goals" of US$100 billion in bilateral trade and total investment in the near future, said Do Nhat Hoang, Director of the Foreign Investment Agency under the Ministry of Planning and Investment (MPI).

Delegates at the event on Tuesday morning. VNS Photo Phạm Thanh Hải

In his speech at the forum on "Promoting investment flows from South Korea to Vietnam" hosted by the Vietnam News Agency's Việt Nam News on October 18, marking 30 years since the establishment of diplomatic relations between the two countries, Hoang praised the effective contributions of South Korean enterprises to the socio-economic development of Vietnam.

In particular, the country has seen a shift in capital flows from South Korean investors in basic manufacturing processes to high-tech industries, energy, banking, financial and high-quality services, and M&A over the past year.

Hoang said he believes that South Korea will maintain its position as Việt Nam's leading source of foreign investment. "In the next one to two years, the two countries can fully realise the "Dual Goals", which aim at the milestone of US$100 billion each in bilateral trade turnover and total accumulated investment," said Hoang.

General director of Vietnam News Agency Vu Viet Trang said Vietnam is not only South Korea's biggest trade partner in ASEAN but also in its New Southern Policy.

Currently, many South Korean enterprises are making effective investments in the country.

The latest data from the Ministry of Planning and Investment (MPI) shows that the accumulated registered FDI capital from South Korea from 1988 to September 2022 reached more than US$80.5 billion with more than 9,400 operating projects.

In the first nine months of 2022, South Korea ranked second among 97 countries and territories investing in Vietnam with 290 projects, worth over $3.8 billion.

Bae Yong Geun, vice president of the Korean Chamber of Business in Việt Nam (KOCHAM), said that Vietnam, the "epicentre" of the South Korean wave in Southeast Asia, is an important destination, and the countries have experienced the strongest cooperation in the world.

"South Korea is still Vietnam's largest investor," said Bae, adding that more than 9,000 South Korean companies are participating in various sectors, such as manufacturing, energy, culture, education and tourism.

At the event, Yoon Chang Woo, General Director of POSCO Vietnam, an enterprise with more than 30 years of investment in Vietnam, said that thanks to the support from the Government, the company was able to overcome difficulties during the COVID-19 pandemic.

Yoon suggested that southern provinces need to develop human resources and essential infrastructure. If more South Korean enterprises wish to invest in these provinces, barriers in human resources and infrastructures might make them hesitate.

Vu Kim Chi, Deputy Head of Quang Ninh's Investment Promotion Agency, welcomed South Korean partners to comment, suggest, and promote technology transfer to achieve efficient, sustainable production and business.

"Quang Ninh Province always prioritises attracting investment, and creating the most favourable conditions for South Korean investors," Chi said, stating eight competitive advantages of Quang Ninh Province.

The province has a geo-strategic location in terms of economy and politics; abundant natural resources; the current socio-economic infrastructure connection system; labour and human resources; the largest area of industrial parks and economic zones in the country; abundant energy resources; business investment environment and administrative reform; and a safe, friendly, attractive destination.

For his part, Koen Soenens, General Sales and Marketing Director of DEEP C Industrial Zones, said DEEP C will continue to expand new industrial parks to welcome more large investors, and these new industrial parks will ensure sustainability standards like the current five parks.

Entering Vietnam in 1997, DEEP C has been operating in the field of industrial park complex development. Striving for a greener standard to be different and providing a sustainable and reliable investment location for customers is the goal of DEEP C.