Investment in the manufacturing and processing industry accounts for nearly 75 percent of the total registered capital and 25 per cent of the total number of projects.

Vietnam attracts more than 10,000 FDI projects from South Korea. Photo: Gia Han

In the first six months this year, South Korea invested US$1.4 billion, ranking fourth among 84 countries and territories, an increase of 16 percent on-year.

The above figures were released at the first meeting of the cooperation committee on small and medium enterprises and startups between Vietnam's Ministry of Planning and Investment (MPI) and South Korea's Ministry of Small and Medium size Enterprises (SMEs) and Startups that took place in Hanoi on August 28.

Minister of Planning and Investment Nguyen Chi Dung also appreciated the business activities and contributions of RoK enterprises in Vietnam, especially the recent strong shift from simple processing sectors to high-tech industries, energy projects, finance-banking, and high-quality services.

"I believe that these will continue to be potential opportunities to promote cooperation between the business communities of the two countries" said the Minister of Planning and Investment.

Opportunities for attracting Korean investment

During his recent official visit to the RoK from June 30 to July 3, Prime Minister Pham Minh Chinh attended the Vietnam-RoK Business Forum, co-organized by the RoK Ministry of Trade, Industry, and Energy, the RoK Chamber of Commerce and Industry (KCCI), the Vietnamese Ministry of Planning and Investment, and the Vietnamese Embassy in the RoK. At the event, Prime Minister Pham Minh Chinh and representatives of both sides signed 23 cooperation agreements between localities, agencies, and businesses of Vietnam and the RoK in the fields of investment, trade, energy transition, biotechnology, industrial park development, semiconductor technology, pharmaceuticals, aviation, logistics, information technology, and mechanics.

The Sovico Group and the Hyosung Group aim to cooperate in researching and implementing sustainable investment and development, developing and investing in data centers, fintech, renewable energy, finance, smart cities, logistics, and other real estate business areas.

At the forum, the People's Committee of Bac Ninh province granted an adjusted investment certificate for the project to manufacture, assemble, and test semiconductor materials and equipment to the investor Amkor Technology Singapore Holding Pte. Ltd. in Yen Phong 2C Industrial Park with an additional capital of over US$1.07 billion. At the same time, a Memorandum of Understanding was signed with the Korea Land and Housing Corporation on the Development of the Southeast Urban Area of Bac Ninh city, continuing the urban growth partnership program based on cooperation between the RoK and Vietnamese governments.

Assessing the flow of capital from the RoK to Vietnam in the coming time, economists believe that with the upgrade of the relationship to a comprehensive strategic partnership in 2022, Vietnam-RoK investment cooperation has entered a new period with projects in the development of supply chains and high technology.

This assessment by economists was immediately confirmed by the leaders of leading RoK corporations through specific orientations for investment in Vietnam. Typically, Shin Dong-bin, chairman of Lotte Group, said that Lotte started investing and doing business in Vietnam in 1996, and by 2018, the group's revenue in Vietnam reached US$6.7 billion.

"We believe that Vietnam will continue to develop strongly, being a highlight of the global economy and the two countries will develop a win-win economic relationship. Therefore, we look forward to the opportunity to invest in large-scale projects in Vietnam," affirmed the Chairman of Lotte Group.

Vietnam is an attractive investment destination. Photo: Taca

Lee Jae Yong, chairman of Samsung Electronics said that as the largest foreign investor and the largest exporter of Vietnam, Samsung is committed to always accompanying Vietnam in sustainable development in line with the spirit of 'shared benefits, shared risks'.

"Samsung has a strong investment plan for the next three years to make its factory in Vietnam the largest display module manufacturing base of the group globally," affirmed the leader of Samsung Vietnam.

Speaking at the first meeting of the cooperation committee on small and medium enterprises and startups, Minister of Planning and Investment Nguyen Chi Dung expressed his desire that RoK enterprises continue to trust and expand investment in areas where the RoK has strengths and Vietnam has high demand, especially in areas such as the digital economy, green economy, circular economy, sharing economy, and emerging industries such as semiconductors, artificial intelligence, hydrogen, and cultural-entertainment industry.

"We hope that the RoK Government and businesses will continue to support Vietnamese businesses in participating in the supply chains of the RoK and global businesses," Minister Nguyen Chi Dung said.

The Ministry of Planning and Investment will always accompany and support businesses, business associations to build and contribute to the socio-economic development of Vietnam and the RoK, developing a good relationship between the two countries.