Vietnam remains favorite investment destination for South Korea amid Covid-19
South Korea continues to be Vietnam’s largest foreign investor with an accumulated registered capital of US$72 billion in 9,100 projects.
While the FDI into Vietnam declined by 2.5% for the first half of the year, the country remained a favorite destination for South Korean investors with a surge in investment inflow of 43.6% year-on-year.
|Samsung is one of the largest investors in Vietnam. Source: Samsung|
Lee Jong Seob, president of the Korea Trade-Investment Promotion Agency (KOTRA) in Southeast Asia and Oceania cum general director of KOTRA Hanoi gave the remarks in an online conference discussing Vietnam’s economic outlook on August 4, which attracted nearly 200 South Korean companies.
“South Korea continues to be Vietnam’s largest foreign investor with an accumulated registered capital of $72 billion in 9,100 projects,” he noted.
Maintaining strong growth momentum of 2.9% last year, Vietnam stayed as the region’s fastest-growing economy in the January-June period with a GDP growth of 5.64%.
“With positive performance in both trading activities and FDI attraction, Vietnam is a prime example of high growth potential that South Korean companies could expand investment activities here,” Lee added.
This is not to say that there is a clear road for Vietnam going forward as the country is facing numerous difficulties from the fourth outbreak.
“Three months on since the fourth outbreak and with thousands of new daily Covid-19 cases, the country’s business environment is deteriorating and makes it hard for enterprises to operate, especially given the shortage of labor force, input materials, and rising logistics costs,” Lee continued.
According to Lee, a major concern for South Korean companies is entry procedures to Vietnam during this serious Covid-19 situation.
On this issue, WHO Representative in Vietnam Kidong Park said Vietnam’s strategy on the Covid-19 fight is in the right direction, urging South Korean companies to strictly comply with local authorities’ instruction to ensure safety during operation.
From August 4, Vietnam decided to cut short the quarantine period to seven days for people fully vaccinated or recovered from Covid-19 and another seven days for health monitoring.
Director of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) Vu Ba Phu said under this difficult period, the Vietnamese Government is determined to pursue the twin goal of both containing the pandemic and boosting economic growth.
“There have been Covid-19 clusters in industrial parks, but localities and management boards of industrial parks are in close cooperation to prevent disruption in production activities,” Phu added.
For the first seven months of this year, South Korea remained Vietnam’s fourth-largest export market with a turnover of $12 billion, up 10.3% year on year.
Vietnam, meanwhile, imported goods and products worth nearly $30 billion from South Korea, or a 20% increase.
- Vietnam continues to be attractive investment destination: ARF
- FDI into greenfield projects in Vietnam rises over 16% in 8-month period
- Foreign investors keep flowing into Vietnam’s semiconductor sector
- Overseas agritech firms' investment to boost Vietnam's agriculture
- Vietnam remains favorite investment destination for South Korea amid Covid-19
- Gov’t needs to focus support on high potential firms: Expert
- Vietnam and Switzerland to promote economic cooperation
- Vietnam set to emerge as major startup ecosystem in SEA by 2022
- Vietnam named first time among world’s top 20 host economies for FDI
- European businesses remain confident about Vietnam’s long-term prospects
Vietnam, Cuba to set up alliances in biotechnology
Vietnam urged to balance long-term trade interest amid China’s CPTPP application: Expert
Mooncake heats up in Hanoi’s supermarket amid pandemic
Boeing 737 Max aircraft expected to fly in Vietnam soon
Skillful hands: get-rich-quick secret of Ha Thai lacquer craftsmen
5G carries Vietnam hope for future
Vietnam receives 1.5 million Covid-19 vaccine doses from France, Italy
Vn-Index set for upward trend from September 13-17
Vietnam looks for Finland experience in hi-tech, innovation