Việt Nam expects next large wave of investment from South Korea

Lee Ji Hyung, head of the Korea Trade-Investment Promotion Agency’s international trade & economic collaboration division, speaks at the 2024 Vietnam-Korea Plus Partnership Week in HCM City on July 16. — VNS Photo

HCM CITY — Việt Nam expects a strong investment wave from South Korea amounting to tens of billions of dollars soon, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

Speaking at the 2024 Việt Nam-Korea Plus Partnership Week in HCM City on Tuesday, Đỗ Nhất Hoàng, Director of the FIA, said South Korea had been one of the leading countries investing in Việt Nam.

As of June it had invested nearly US$87.5 billion in more than 10,000 projects, with manufacturing accounting for nearly 75 per cent of the amount, he said.

He appreciated South Korean firms for their quick implementation of projects, high quality and technology, exhibiting social responsibility and care for employees, and strict compliance with the law.

In terms of official development assistance too, South Korea is a big contributor, with Việt Nam accounting for 20 per cent of its total ODA, mainly with loans to fund urban transport infrastructure, education – training, environment, clean energy, and information technology, according to the official.

Korean investment is expected to zoom in the wake of Prime Minister Phạm Minh Chính’s visit to South Korea in July. The Prime Minister had met with the chiefs of 14 leading Korean companies that plan to invest billions of dollars in Việt Nam.

Việt Nam is now more selective about FDI, with an increased focus on quality, efficiency and sustainability and priority for investment in electronics, semiconductors, renewable energy, digital economy – digital transformation, high-tech agriculture, financial centres, innovation, and research and development.

Việt Nam also wants foreign investors to link up with domestic businesses.

To attract FDI, the country has worked hard to stabilise its economy, speeded up institutional and investment environment reforms, developed infrastructure and high-quality human resources, readied unencumbered lands to meet investors’ needs, and promoted supporting industries and has policies to support new investors.

It also promotes digital, green and energy transformation and innovation, develops information technology infrastructure and holds regular dialogues with investors to help overcome their difficulties.

Lee Ji Hyung, Head of the Korea Trade-Investment Promotion Agency’s international trade & economic collaboration division, said since they established diplomatic relations in 1992, ties between Việt Nam and South Korea had flourished in many areas, including investment and trade.

Bilateral trade increased by 162 times from $490 million in 1992 to $79.42 billion in 2023, he pointed out.

Korean and Vietnamese businesses discuss co-operation opportunities at a B2B business matching event held as part of the 2024 Vietnam-Korea Plus Partnership Week in HCM City on July 16. — VNS Photo

Việt Nam was in fact South Korea’s third largest trading partner last year after China and the US, and also the third largest investment destination in 1980-2023, he said.

Organised by KOTRA, the 2024 Korea-Việt Nam Plus Partnership Week also features a Việt Nam-Korea Co-operation Forum in promising future fields (smart industries) on July 16, a B2B matching programme for smart industries, a seminar introducing prospective ODA projects on July 17, and a Korea Shopping Festival from July 17 to 21, he said.

“I hope this will be a good opportunity for Korean enterprises with technological capabilities to participate in key infrastructure projects that Việt Nam is implementing such as subways, highways, LNG plants.”

At the Việt Nam-Korea Co-operation Forum on promising future fields in HCM City on Tuesday, 150 delegates, including from the Government and businesses in the two countries, presented opportunities and solutions to promote bilateral co-operation in the future.

Vietnamese and South Korean businesses signed two MOUs for co-operation. — VNS