Hai Phong city approves Korean investments of $230 mln

Vietnam’s northern coastal city of Hai Phong approved four South Korean-invested projects with total registered capital and additional capital of $230 million at the Hai Phong-Korea trade and investment promotion conference on Monday.

At the event in Seoul featuring about 150 South Korean businesses, Hai Phong leaders granted investment certificates to Bumhan Vina Heavy Industries, Haewon Vina, Hala Electronics Vina, and EST Vina HaiPhong. City leaders also signed other cooperation agreements with a total investment commitment of $1.5 billion.

Bumhan Vina Heavy Industries is a manufacturer of boilers, storage tanks, and industrial equipment. Haewon Vina is a metal casting company, while Hala Electronics Vina and EST Vina HaiPhong are both an electronics manufacturer.

Le Tien Chau, chief of Hai Phong's Party Committee, said the city would continue pushing comprehensive cooperation with South Korean partners and call for investments in smart city development, e-government, renewable energy, semiconductor components, infrastructure and urban areas, hospitals, and schools to develop of an ecosystem of South Korean businesses in Hai Phong.

The municipality is committed to improving the business environment and infrastructure, especially transport connections, along with new industrial parks, the leader said. Meanwhile, South Korean firms also lauded the business environment and the local authorities’ support.

South Korea is the top foreign investor in Vietnam with 9,666 valid projects and total registered capital of $81.56 billion, according to ministerial data. The country is also Hai Phong’s biggest foreign investor with investment of nearly $10 billion so far, mostly in electronics, auto parts, and machinery, according to Vietnam Ministry of Planning and Investment data.

The biggest investor in Hai Phong is LG. The electronics giant's three factories in the city, namely LG Display Vietnam Haiphong, LG Electronics Vietnam Hai Phong, and LG Innotek Vietnam Hai Phong, recorded a total net profit of KRW434.51 billion ($328.5 million) in 2022, down 21% year-on-year. Their total sales reached KRW11,504 billion ($8.7 billion), up 16.71%, according to the company's financial statement.