An increasing number of South Korean companies are interested in investing in Vietnam’s central region given Vietnam’s move to balance regional development and local government activism, said Kang Boo Sung, consul general of the Northeast Asian country in Danang.
At a conference on the expansion of investment cooperation between South Korea and Vietnam’s central localities held in Danang on Friday, Kang informed that around 250 Korean firms are operating in the central region out of some 8,000 across the country.
He expected more Korean businesses to come to the region to tap into appealing investment attraction policies set by local governments. “The success of the existing companies will serve as exemplary examples to lure more Korean firms to invest in the central region.”
Notable success stories of Korean businesses in this region include Hyundai, hotel chain The Shilla Hotels & Resorts in Quang Nam province; LG, Lotte, and Detium in Danang; and Doosan in Quang Ngai.
Foreign direct investment (FDI) from South Korea totaled $3.92 billion in the 10 months through October in Vietnam, ranking second among foreign investors. South Korea has poured $81 billion into the Southeast Asian country, taking the top position, according to data from the Ministry of Planning and Investment.
Two-way trade jumped 160 times in the past 30 years to $81.1 billion in 2022, making the two sides each other’s third largest trade partner, said the consul general.
Central localities long for Korean investment
Speaking at the conference, Danang Vice Chairman Ho Ky Minh noted that his city pays great attention to attracting South Korean investments given their punctuality, quality and alignment with the city’s development orientations.
Danang has licensed 1,016 FDI projects worth $4.2 billion. Of the number, 268 projects valued at $362 million came from South Korea, raking fifth in terms of value among 45 countries and territories investing in the city.
In neighboring Quang Nam province, with 193 FDI projects worth a combined $6 billion in place, South Korea is the largest investor in terms of number of projects, 58, with registered capital of $867 million. Their favorite industries are manufacturing, processing and services, said Nguyen Van Tan, deputy director of Quang Nam’s investment department.
Meanwhile in Quang Ngai, FDI from Korea has totaled $360 million in 15 projects. A heavy industry plant worth over $300 million of Doosan Vina, the largest foreign investment in the province, has posted positive results, according to local authorities.
Nguyen Xuan Bac, deputy director of Quang Nam’s provincial investment department, expressed hope to establish sisterhoods with Korean localities for improved trade and investment ties.