Statistics from the Foreign Investment Agency (FIA) of Vietnam also show RoK businesses have poured more than US$1.5 billion into the Southeast Asian country 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.
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RoK businesses consider Vietnam a key partner in Southeast Asia and a prime destination offering excellent business and investment opportunities.
They universally regard Vietnam as a better alternative than China for pursuing business and investment strategies, principally due to the country’s political stability and young highly skilled workforce.
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, the national domestic industry and Vietnam will continue down a path that remains overly dependent on foreign industry and technology, they say.
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 incrementally increasing their investment capital into Vietnam month by month.
For instance, Hong Kong ranks second after the RoK among foreign investors in Vietnam with US$1.15 billion, comprising 12.1% of the country’s total FDI.
Japan is third with US$1.11 billion, making up 11.7%, followed by Singapore with US$804.6 million, accounting for 8.4%.
The FDI sector continued to enjoy an export surplus in July, bringing its total export surplus to US$9.78 billion in 7 months.
The manufacturing and processing industries drew the greatest attention from foreign investors with 448 projects worth US$6.66 billion (making up 69.9%), followed by real estate with US$1.13 billion and construction with US$547.58 million.
