RoK becomes largest foreign investor in VN

Many Korean companies have arrived in VN in recent times to seize opportunities in its developing economy

Official data indicate that the RoK has surpassed Japan, Singapore and Chinese Taipei to become the largest foreign investor in Viet Nam with total registered capital of US$65.7 billion as of September 2019.

At a Viet Nam-RoK business summit has held in the central province of Quang Nam, Deputy Prime Minister Trinh Dinh Dung assessed that bilateral cooperation had grown rapidly and on a stable basis, and yielded impressive achievements.

He praised the RoK business community for its important role in promoting substantial and efficient investment cooperation.

Viet Nam and the Republic of Korea established diplomatic ties in 1992, and saw bilateral trade value top $30 billion in 2014, 30 times higher than the initial stage.

Big firms which invested the huge capital in Viet Nam and contributed significantly to the national socio-economic development are LG, Posco, Hyundai, and Lotte.

RoK investment in Viet Nam is expected to become more substantial and efficient in the near future. RoK enterprises will increase investment and cooperation with Vietnamese enterprises in automobiles and machinery manufacturing, and the petrochemical industries.

At present, Viet Nam is committed to improving its market economy institutions, developing human resources and building infrastructure to continue attracting Korean businesses.

The coutry is the fourth largest outbound market of the Republic of Korea, behind the U.S., China and Hong Kong.

Major trading partner

Bilateral trade has been growing well.  Viet Nam is one of the two ASEAN (Association of Southeast Asian Nations) countries to sign a bilateral free trade agreement (FTA) with the RoK. Bilateral trade accounted for 50% of trade between the RoK and ASEAN.

The Korea-Viet Nam Free Trade Agreement (KVFTA) is designed to improve the effectiveness of the legal framework, trade policies’ implementation, economic restructuring, especially the business environment, and competitiveness of the two economies.

Many Korean companies have arrived in Viet Nam in recent times to seize opportunities in its developing economy.

Bilateral trade between Viet Nam and the Republic of Korea is expected to reach $70 billion by 2020 due to the Viet Nam- the Republic of Korea Free Trade Agreement (VKFTA), which came into effect a year ago. /.

By Vien Nhu