Billions of dollars of FDI capital from South Korea is about to be poured into Vietnam
Báo Dân trí•16/07/2024
(Dan Tri) - Director of the Foreign Investment Agency (Ministry of Planning and Investment) Do Nhat Hoang said that in the near future, Vietnam will receive a strong investment flow from South Korea of up to tens of billions of USD.
On the morning of July 16, the Korea Trade-Investment Promotion Agency under the Ministry of Trade, Industry and Energy of Korea organized the "Vietnam - Korea Enhanced Partnership Week 2024". Speaking at the event, Mr. Do Nhat Hoang, Director of the Foreign Investment Agency (Ministry of Planning and Investment), said that over the past 5 years, Korea has been one of the leading investors in Vietnam in terms of total registered investment capital and number of projects. Accumulated to June this year, total direct investment from Korea in Vietnam reached nearly 87.5 billion USD with more than 10,000 investment projects. Of which, investment in the manufacturing and processing industry accounted for nearly 75% of total registered capital and 25% of total projects.
Mr. Do Nhat Hoang, Director of the Foreign Investment Agency under the Ministry of Planning and Investment (Photo: Nhat Quang).
In the past 6 months alone, Korea invested 1.4 billion USD, ranking 4th out of 84 countries and territories, up 16% over the same period in 2023. Regarding development cooperation (ODA), Vietnam continues to be the top priority partner to which Korea provides development assistance, accounting for about 20% of Korea's total aid. Priority areas receiving ODA from Korea are urban transport infrastructure, education and training, environment, clean energy, information technology, etc. According to Mr. Hoang, in the current economic context of Vietnam, investors participating in investment in Vietnam are increasing rapidly. In the near future, Vietnam will receive a strong investment flow from Korea of up to tens of billions of USD. Investment flows are expected to increase sharply after the visit to Vietnam by the President of the Republic of Korea in June 2023 and the visit to Korea by Prime Minister Pham Minh Chinh last June. Prime Minister Pham Minh Chinh recently received 14 general directors and chairmen of large Korean corporations. All units expressed their views on each corporation investing billions of USD in Vietnam. Expressing their views on foreign investment cooperation, the representative of the Foreign Investment Agency said that Vietnam will proactively attract and selectively cooperate with foreign investment. At the same time, criteria such as quality, efficiency, technology and environmental protection will be the main evaluation criteria. Priority industries to attract are electronics, semiconductors, renewable energy, digital economy - digital transformation, high-tech agriculture, financial centers, innovation, research and development, etc. Mr. Hoang said that Vietnam also prioritizes foreign investment in association with domestic enterprises to create mutual support. At the same time, Vietnam's commitment at COP26 to reduce net emissions to zero by 2050 has inspired investors. Many investors coming to Vietnam are interested in the fields of renewable energy and green transformation. To attract FDI capital, Vietnam has been persistent in stabilizing and developing its macro economy for many years. In addition, Vietnam has also continuously reformed its institutions, improved its investment environment, invested in infrastructure, etc. "Clean land funds have also been prepared, and high-quality human resources are ready to welcome investment waves, Mr. Hoang emphasized. Vietnam is also actively promoting digital transformation, green transformation, energy transformation, innovation, deploying information technology infrastructure, and enhancing dialogue with investors to remove difficulties. Also at the event, Mr. Lee Ji-Hyung - Director in charge of economic and trade cooperation at the Korea Trade-Investment Promotion Agency, said that Vietnam is also the third largest trading partner in Korea, after the US and China. Through trade promotion sessions, he expects Korean enterprises to have enough capacity to participate in key infrastructure projects, priority industry groups, such as high-speed subways, LNG plants, etc.
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