Positive shift in RoK’s investment in Vietnam: KOTRA Hanoi chief
Investment from the Republic of Korea (RoK) in Vietnam is being spread across a wider range of fields as Korean investors now consider Vietnam not only a for-export manufacturing workshop but also a potential consumption market.
He said Korean businesses’ interest in Vietnam is stronger than ever, noting that Vietnam with open policies has maintained good economic growth. The Vietnam-RoK Free Trade Agreement, effective from December 2015, has also boosted bilateral trade.
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| A mobilephone component factory of Samsung in Bac Ninh province |
This is a positive development as it can create opportunities for Korean firms to partner with Vietnamese peers in multiple fields, according to the KOTRA Hanoi chief.
RoK companies have invested in 19 areas in Vietnam, mostly processing and manufacturing (US$35 billion), real estate (US$8.2 billion), and construction (US$2.7 billion).
Despite a decline in recent years, manufacturing still makes up the biggest proportion of Korean investment in Vietnam. It is forecast to retain this position as many RoK factories are being moved to Vietnam due to the degradation of China’s investment climate.
Manufacturing-related services are set to develop in the near future, Park Chul Ho said.
Distribution, wholesaling, retailing, science-technology and infrastructure are also expected to attract stronger investment.
Park hopes that with such changes, the two countries’ enterprises will develop new industries and make inroads into global markets by cooperating in more diverse sectors.
