More South Korean manufacturers have poured money into Vietnam and many of them have shifted their investment to the Southeast Asian country from China, Vietnam News reported. 
A trade promotion conference between Vietnam and South Korea. Photo: Internet
|
Investment in Vietnam accounted for 17.7% of South Korea’s overseas financing in 2017, compared to 3.7% in 1990. Meanwhile, the ratio in China fell to 27.6% in 2017 from 44.5% in 2000s, the report showed.
The FKI attributed the increasing investment in Vietnam to better business environment and favorable policies. Vietnam has offered tax exemption to foreign invested enterprises working in hi-tech sectors and removed foreign investment limits.
Whereas, China has imposed a corporate tax of 25% on both domestic and foreign companies since 2008, applied a wide range of items banned from being manufactured, and hiked salaries.
Foreign direct investment from South Korea in Vietnam reached US$8.49 billion in 2017, making the Northeast Asian country the second largest investor in the latter, only behind Japan with US$9.11 billion, according to the Vietnamese investment ministry.
