RoK manufacturing businesses look to VN

VGP – Viet Nam accounted for 17.7% of total RoK’s FDI in 2017. The proportion surged sharply in comparison with the rate of 3.7% in 1990, according to the Federation of Korean Industries (FKI).

November 22, 2018 3:05 PM GMT+7

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The FKI on November 22 reported that Korean manufacturing enterprises are shifting their foreign direct investment focus from China to Viet Nam to make full use of tax incentives, cheaper labor costs, and other favorable conditions.

On the other hand, in China, the RoK’s FDI fell to 27.6% in 2017 from 44.5% in 2000s.

Especially, Korean SMEs operating in the manufacturing sector massively withdrew capital from the world’s second largest economy to Viet Nam. Specifically, FDI of Korean SMEs in Viet Nam exceeded that in China in 2014 for the first time, touching US$ 720 million in 2017 in comparison with US$ 430 million in China.

However, total FDI of Korean big companies in China is 2.7 times higher than that in Viet Nam in 2017.

According to the report, Viet Nam emerged as a favorite investment destination in the eyes of Korean manufacturers thanks to her better business environment and policies./.

By Kim Loan