Korean enterprises are interested in investing in high-tech industries

VCN - Investment activities of Korean enterprises in Vietnam have not only increased in capital in recent years, but investment fields have tended to shift to high-tech industries.
Korean FDI trend inflows into Vietnam to change significantly Korean FDI trend inflows into Vietnam to change significantly
Remove difficulties in customs – tax policies for Korean enterprises Remove difficulties in customs – tax policies for Korean enterprises
Korean and Japanese agricultural products and food enter Vietnam Korean and Japanese agricultural products and food enter Vietnam
Korean enterprises are interested in investing in high-tech industries
Samsung is one of the Korean enterprises investing in Vietnam the most in recent years. Photo: Tran Ngoc

Attracting great investment

Korea has been one of Vietnam's largest investment partners for many years, making an important contribution to Vietnam's economic development.

For Korean enterprises investing in Vietnam, Samsung's investment project with a total investment value exceeding the threshold of US$20 billion must be mentioned when recently (June 2022), Samsung decided to increase investment capital by US$841 million for Samsung Complex HCMC – SEHC (Samsung's largest global TV and home appliance manufacturing factory).

Another Samsung project in Thai Nguyen - Samsung Electro-mechanics Vietnam (SVMC) also raised capital by US$267 million in June. With these new investments, Samsung continues to maintain its position as the largest foreign investor in Vietnam.

According to the Foreign Investment Agency, Ministry of Planning and Investment, in the first six months of 2022, Korean investors have registered to invest in Vietnam over US$2.66 billion, accounting for nearly 19% of the total investment capital, up 29.6% over the same period last year.

Trade turnover between Vietnam and Korea reached US$500 million in 1992, by 2021, it increased to US$78 billion. The two sides are aiming for bilateral import and export growth to reach US$100 billion in 2023 and US$150 billion in 2030.

Many other large corporations in Korea have also continued to choose Vietnam as an investment destination with large projects.

Hanwha Group has recently entered into a joint venture with Vietnam's T&T Group to invest in the Hai Lang Gas Power Project (Quang Tri), the investment capital of the first phase is US$2.3 billion. Or LG Group with two capital increases in 2021 for LG Display, bringing the total investment capital of LG Display in Vietnam to US$4.65 billion.

Amkor has also invested in a semiconductor manufacturing project in Bac Ninh, with the scale of the first phase being US$500 million.

Kwon Sung-Taek, Vice President of the Korea-Vietnam Economic and Cultural Association (KOVECA), said that in the ASEAN region, the bilateral trade turnover between Vietnam and the Republic of Korea was equal to the total bilateral trade turnover of Korea with the remaining nine countries. Regarding production investment, Korean enterprises contributed about 25% of Vietnam's total export turnover.

Korean enterprises have strengths in technology, techniques, experience and capital. Vietnam has abundant human resources. Previously, Korean enterprises invested in Vietnam with many labour-intensive industries, but in the future, the investment trend will change with many manufacturing and high-tech industries.

Korea aimed to increase bilateral trade turnover to US$100 billion in 2023 and US$150 billion in 2030 towards a balanced and sustainable direction, increasing the volume of Vietnam's exports to Korea; encouraging Korean enterprises to increase investment in spearhead industrial fields in parallel with technology transfer to Vietnam; continuing close cooperation in the field of science and technology, including the implementation of the second phase of the Vietnam - Korea Institute of Science and Technology (VKIST) project, Mr. Kwon Sung-Taek said.

Creating a favourable environment

Although appreciating the investment potential in Vietnam, speaking at the Conference on Investment Promotion of Korean FDI in Vietnam last weekend, a number of Korean enterprises reflected the legal document system for investment activities in Vietnam was constantly changing, causing many problems.

Therefore, Korean investors want Vietnam to have more consistency and transparency in policy regulations, especially investment attraction policies.

Mr. Pham Huu Thang, Vice President, General Secretary of the Association for Communication with overseas Vietnamese, former Deputy Director of the Foreign Investment Department, Ministry of Planning and Investment, acknowledged that Vietnam was ready to welcome foreign Korean investors cooperate, the partners also had demand and desire to seek investment opportunities. Besides the advantages, there were still certain challenges, so the two sides should exchange regularly to share and update information and each other's demand to move towards more specific and effective cooperation.

Faced with concerns about investment procedures of Korean enterprises, leaders of many localities having a large number of investment projects of Korean enterprises such as Bac Ninh, Long An, Dong Nai and Khanh Hoa said that these localities were ready to welcome and create conditions for Korean investors to look for investment opportunities.

As one of the localities that attract a lot of investment from FDI enterprises, including Korean ones, Vice Chairman of Bac Ninh Provincial People's Committee Ngo Tan Phuong said that the province currently had 590 projects with a total capital of about US$14 billion. In which, Samsung was a major investor in the province along with a chain of satellite companies, contributing to a large export turnover of about US$45 billion, creating jobs and collecting local budgets. That was the success of the province in attracting FDI, especially Korean enterprises.

Bac Ninh focused on investing in infrastructure for industrial parks (currently, Bac Ninh had 36 industrial parks ready to welcome new investors), expanding and investing in new traffic routes, and ensuring electricity supply for industrial zones. In particular, Bac Ninh province had a customs clearance port ICD Tan Cang - Que Vo ICD, and established an interdisciplinary team ready to answer all questions of enterprises, and regularly organized dialogues between provincial leaders and FDI enterprises.

Ms. Nguyen Thi Hoang, Vice Chairman of Dong Nai People's Committee, said that Dong Nai province currently attracted more than 1,500 FDI projects with a total investment of about US$33 billion, of which Korean investors had 426 projects with an investment capital of US$7 billion. Korean enterprises investing in Dong Nai were mainly supporting industries, producing electronic components. To continue to attract FDI, Dong Nai plans to build eight new industrial parks with a total area of 8,500 ha. Unlike before, Dong Nai would attract investment selectively, giving priority to high-tech and innovative science projects.

By Thu Diu/ Binh Minh

Related News

Vietnam-China trade reaches over US$ 27 billion

Vietnam-China trade reaches over US$ 27 billion

VCN – China continues to be the Vietnam's largest trading partner.
Preliminary assessment of Vietnam international merchandise trade performance in the first 2 months of 2024

Preliminary assessment of Vietnam international merchandise trade performance in the first 2 months of 2024

Highlights 1. According to trade statistics of Vietnam Customs, in February of 2024, a 26.7% downwards in total external merchandise turnover of Vietnam was recorded as compared to the result of January 2024. Exports went down 28.5 %, to USD 24.69 billion and imports decreased 24.6%, to USD 23.30 billion in terms of month-on-month basis. As a result, there was a USD 1.38 billion surplus in Vietnam’s trade balance in this month.
Preliminary assessment of Vietnam international merchandise trade performance in the second half of January, 2024

Preliminary assessment of Vietnam international merchandise trade performance in the second half of January, 2024

The Vietnam Customs Statistics announced that in the second half of January, 2024 the total Vietnam’s exports of US dollars 19.3 billion and imports of nearly US dollars 16.03 billion resulted in a trade surplus of US dollars 3.27 billion. Accordingly, the total value of export and import turnover of Vietnam in the second half of January was over US dollars 35.33 billion, up by 18.6% as compared to the first half of January-2024. Furthermore, in the first month of 2024, Vietnam was in trade surplus of USD 3.63 billion.
Exports of goods to key markets rocket

Exports of goods to key markets rocket

VCN- Vietnam's key export markets and industries are launching impressively in 2024.

Latest News

Vietnam National Brand Week to be held in mid-April

Vietnam National Brand Week to be held in mid-April

The Vietnam National Brand Week 2024 will be held nationwide from April 15-21 to raise public awareness of Vietnam national brand and promote products recognised as national brands to domestic and international communities.
Textile industry in sustainability push to meet stringent requirements

Textile industry in sustainability push to meet stringent requirements

Textile and garment businesses are making a green push with development of eco-friendly products adapted to global fashion trends and by meeting the stringent requirements under free trade agreements the country has signed, according to industry insiders.
Loosening the belt buckle for sustainable development of the maritime industry

Loosening the belt buckle for sustainable development of the maritime industry

VCN - Recently, the growth of maritime and waterway transportation has been impressive, with a double-digit rate of about 10-12% per year. However, despite many advantages, the waterway system has not been efficiently utilized, commensurate with its potential. The Customs News had a discussion with Pham Quoc Long, Vice Chairman of the Vietnam Shipowners' Association, on this issue.
Vietnam ready to ride US investment wave

Vietnam ready to ride US investment wave

Vietnam is on the verge of seeing a massive influx of investments from the US, and stands ready to welcome the wave.

More News

Investing in wages is investing in development

Investing in wages is investing in development

VCN - According to Dr. Bui Sy Loi (photo), senior expert of the Ministry of Labor, War Invalids and Social Affairs, former Deputy Chairman of the National Assembly's Committee on Social Affairs, the National Assembly's adoption of the reform policy salaries, resource decisions and salary reform policies on July 1, 2024 is a suitable time, both historical and topical, contributing to ensuring life, creating peace of mind for staff, civil servants, public employees and workers.
Import and export in the first quarter: clearer and clearer bounce- back trend

Import and export in the first quarter: clearer and clearer bounce- back trend

VCN - As calculated, total import-export turnover of goods in the first quarter of the year reached over 178 billion USD, up 15.5% year on year. Both exports and imports achieved high growth rates, clearly showing a recovery trend.
Measures sought for coffee firms to adapt to EU Deforestation Regulations

Measures sought for coffee firms to adapt to EU Deforestation Regulations

Experts gathered in the Central Highlands province of Gia Lai on April 9 to seek measures to help local coffee businesses to adapt to the EU Deforestation Regulations (EUDR) and promote exports to the EU market in particular and the world in general.
Vietnam’s export to India maintains growth momentum

Vietnam’s export to India maintains growth momentum

Vietnam kept its export growth momentum in the Indian market in 2023 after two-way trade hit a record high of 15 billion USD in 2022, Vietnamese trade counsellor in India Bui Trung Thuong told the Vietnam News Agency.
Ample room remains for Vietnam"s exports to China

Ample room remains for Vietnam"s exports to China

There remains ample room for Vietnam's exports to China and the growth will be directly proportional to the quality improvement of products by domestic enterprises, according to Dau tu (Investment) Newspaper.
Negotiating actively FTAs, increasing benefits for businesses

Negotiating actively FTAs, increasing benefits for businesses

VCN - Facing the improvement of exports in the first quarter, sharing with the press, Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade) said that many solutions will continue to be implemented to achieve the goal export growth 2024.
Take advantage to increase fruit and vegetable exports to nearby markets

Take advantage to increase fruit and vegetable exports to nearby markets

VCN - With close geographical distance, low cost and transportation time, and preferential tariffs... are great advantages that Vietnam's fruit and vegetable industry needs to take advantage of to increase exports to other Asian markets such as China, ASEAN, Middle East...
Nearly 20 thousand businesses are newly established and return to operation every month

Nearly 20 thousand businesses are newly established and return to operation every month

VCN - According to General Statistics Office, in March, the whole country had 14.1 thousand newly established enterprises with a registered capital of VND113.5 trillion and 104.4 thousand employees registered, an increase of 64.3% in the number of businesses, a rise of 68.7% in registered capital and growing 105.2% in the number of employees compared to February 2024.
Be objective before requesting anti-dumping investigation on imported HRC steel

Be objective before requesting anti-dumping investigation on imported HRC steel

VCN - The steel market is "hot" with two conflicting opinions on the issue of initiating an anti-dumping investigation on hot-rolled coil (HRC) steel products imported from China to Vietnam. But clearly, all decisions need to be based on specific and objective data to create a healthy competitive environment.
Read More

Your care

Latest Most read
Vietnam National Brand Week to be held in mid-April

Vietnam National Brand Week to be held in mid-April

The Vietnam National Brand Week 2024 will be held nationwide from April 15-21 to raise public awareness of Vietnam national brand and promote products recognised as national brands to domestic and international communities.
Textile industry in sustainability push to meet stringent requirements

Textile industry in sustainability push to meet stringent requirements

Textile and garment businesses are making a green push with development of eco-friendly products adapted to global fashion trends and by meeting the stringent requirements under free trade agreements the country has signed, according to industry insiders.
Loosening the belt buckle for sustainable development of the maritime industry

Loosening the belt buckle for sustainable development of the maritime industry

VCN - Recently, the growth of maritime and waterway transportation has been impressive, with a double-digit rate of about 10-12% per year. However, despite many advantages, the waterway system has not been efficiently utilized, commensurate with its poten
Vietnam ready to ride US investment wave

Vietnam ready to ride US investment wave

Vietnam is on the verge of seeing a massive influx of investments from the US, and stands ready to welcome the wave.
Investing in wages is investing in development

Investing in wages is investing in development

VCN - According to Dr. Bui Sy Loi (photo), senior expert of the Ministry of Labor, War Invalids and Social Affairs, former Deputy Chairman of the National Assembly's Committee on Social Affairs, the National Assembly's adoption of the reform policy salari
Mobile Version