Many large Korean corporations wish to invest and continue to invest in Vietnam. This is an opportunity to jointly promote “new cooperation horizons”, as Prime Minister Pham Minh Chinh said.
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| Produced at Samkwang Vina Co., Ltd. (Bac Giang). (Source: Investment Newspaper) |
Opportunities from billion dollar handshakes
A series of cooperation agreements between Vietnamese and Korean enterprises were signed within the framework of Prime Minister Pham Minh Chinh’s visit to Korea. These include cooperation agreements between Sovico Group and Hyosung Group; between T&T Group and SK Group; between MHGroup Joint Stock Company and UNISCAN Company Limited…
Vietnam Pharmaceutical Corporation (Vinapharm) and Celltrion Pharmaceutical Group, Inc. (Celltrion) also signed a memorandum of understanding on establishing a company to manufacture biopharmaceutical and pharmaceutical products in Vietnam to supply the Vietnamese market and other markets.
But more than the above agreements, in Korea, the leaders of the People's Committee of Bac Ninh province also officially granted an adjusted investment certificate, increasing capital by 1.07 billion USD to Amkor Group... And not only Amkor, many large Korean corporations, in meetings with Prime Minister Pham Minh Chinh, expressed their desire to continue expanding investment in Vietnam.
One of them is Samsung Group - the largest foreign investor in Vietnam today, with a total investment capital of over 22.4 billion USD. Samsung Group Chairman, Mr. Lee Jae Yong, in a meeting with Prime Minister Pham Minh Chinh, said that Samsung plans to "invest heavily" in the next 3 years to make the factory in Vietnam the Group's largest display module production base globally.
The figure has not been disclosed, but with the trend in recent years, Samsung often invests an additional 1 billion USD/year in Vietnam, so perhaps this will be a not small investment.
Furthermore, the Vietnamese Government's recent desire is not only to attract Samsung to invest in the production of electronic and mobile devices as it is now, but also to expand into the semiconductor sector - one of Samsung's strengths.
Along with Samsung, other Korean giants are also making big investment plans in Vietnam. According to Mr. Cheoldong Jeong, CEO of LG Display, Vietnam is LG’s global manufacturing hub. Of the total registered capital of more than 8 billion USD, LG has disbursed more than 5 billion USD and is planning to continue investing in the coming period. Among them, there is the LG Innotek factory in Hai Phong, which, when completed, will double its capacity, forming a closed LG manufacturing complex.
A series of other large Korean corporations, such as Posco, CJ, LG, Daewoo E&C, GS Engineering & Construction Corp, Hyosung… also have plans to continue investing, after having poured billions of USD into Vietnam. In particular, CJ wishes to continue investing in the food sector; Posco wants to participate in the exploitation and processing of rare earths in Vietnam; Daewoo E&C Group wants to develop a new urban area in Thai Binh…
New Horizons of Cooperation
As expected, Prime Minister Pham Minh Chinh's visit to Korea has been "heating up" the flow of foreign investment from Korea, which has been slowing down in recent years.
Many expectations are being raised, not only that there will continue to be large capital flows from Korea to Vietnam, but more importantly, they will flow into areas where Vietnam is encouraging investment, such as new technology, semiconductors, artificial intelligence (AI), hydrogen, LNG electricity, biotechnology, etc. In particular, semiconductors and AI are the focus of cooperation.
In a joint press release, the two sides agreed to encourage Korean enterprises to expand their investment in Vietnam, in key industries and future industries such as digital transformation, green economy, circular economy, semiconductors, environmentally friendly energy, biotechnology, 5G network, smart cities, etc. In addition, the two sides agreed to strengthen necessary cooperation in promoting investment by Korean enterprises to build a stable core mineral supply chain, etc.
Huge opportunities are opening up, but the important thing is, how will Vietnam seize these opportunities?
During his talks with Prime Minister Pham Minh Chinh, Prime Minister Han Duck Soo said that creating favorable investment conditions is necessary for sustainable trade and investment expansion, enhancing future industrial cooperation between the two countries. Prime Minister Han Duck Doo personally asked the Vietnamese side to actively support the resolution of tax problems of Korean enterprises in Vietnam.
In recent business forums, many Korean enterprises have spoken out about the lack of consistency and transparency in implementing investment incentive mechanisms for some projects. These problems are still being handled by Vietnamese authorities.
From another perspective, responding to the concerns of Korean investors, Prime Minister Pham Minh Chinh also said that the Vietnamese Government is drafting a decree on the establishment, management and use of the Investment Support Fund, to ensure the stability, competitiveness and attractiveness of Vietnam's investment environment.
It is expected that this decree will soon be submitted to the National Assembly Standing Committee. If approved, this will be an “anchor” to retain large corporations, as well as attract more global “giants”, including leading Korean corporations, to invest in high-tech, semiconductor, AI, and R&D centers in Vietnam.
Great opportunities are opening up for investment from South Korea to pour into Vietnam in the coming time. As Prime Minister Pham Minh Chinh said, the relationship between the two countries is “mature enough”, from which “new horizons of cooperation” can be opened up…
Source: https://baoquocte.vn/viet-nam-han-quoc-mo-ra-nhung-chan-troi-hop-tac-moi-277772.html
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