RoK tops foreign investor list in Vietnam

Republic of Korea (RoK) businesses have pumped over 3.13 billion USD of cash into Vietnam’s economy in the first seven months of the year, accounting for one third of the country’s total foreign direct investment (FDI), radio The Voice of Vietnam (VOV) said.

Statistics from the Foreign Investment Agency (FIA) also show RoK businesses have poured more than 1.5 billion USD into Vietnam since June 2014, making the RoK the largest foreign investor in the country.

Lotte-Sea Logistics, Lock& lock, Simone, Vina-Seafoods Pride, Quanon, Young Chemical Vina and Magic Vina were among the many Korean investors that attended a recent dialogue with the managing board of the Long Hau Industrial Zone (IZ) in Long An province, discussing FDI attraction and IZ support policies.

Such dialogues with Korean investors have become increasingly more common in recent times.

RoK businesses consider Vietnam a key partner in Southeast Asia and a prime destination offering excellent business and investment opportunities.

Experts caution, however, it is important that the cash inflows are utilised efficiently and effectively to their greatest advantage to achieve sustainable economic development that benefits the national social welfare.

Vietnam should strive to carve out a niche for technology transfer to successfully carry out the localisation process for the greatest benefit of the national industry.

Without an effective localisation process, Vietnam would continue down a path that remains overly dependent on foreign industry and technology, they said.

The country should aim to realise the long-term benefits of developing a self-reliant domestic industry focused on creating high added value products and avoiding at all costs transforming itself into a nation that just does outsourcing, easily exploited for its cheap labour and natural resources.

According to the FIA, not only RoK investors but also those from Hong Kong and Japan are increasing their investment capital into Vietnam month by month.

Source:VNA

Other news