New hope for stronger Vietnam-RoK investment cooperation

Samsung Electronics factory in Bac Ninh (Photo: VNA)

Hanoi (VNA) – The ongoing state visit by the Republic of Korea (RoK)’s President Yoon Suk Yeol, who is being accompanied by leaders of 205 RoK firms, including large ones such as Samsung Electronics, SK, Hyundai Motor, LG, and Lotte, is expected to further beef up the investment cooperation between the two countries.

During the 3-day visit, businesses of the two sides are expected to sign a number of cooperation deals as leading RoK manufacturers are seeking measures to ensure supply chains and expand exports.

On June 24, a Vietnam-RoK Business Forum will be held, gathering leaders of the two countries and a large number of businesses of both sides.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, the presence of the business delegation and leading billionaires of the RoK and the world in Vietnam brings a new hope for the further growth between the two countries. All the five major RoK enterprises have made big investment in Vietnam and planned to expand the investment.

Samsung has announced its plan to inject 3.3 billion USD in Vietnam, including 2 billion USD disbursed in projects in Thai Nguyen and Ho Chi Minh City.

Meanwhile, in late 2022, LG revealed its plan to invest an additional 5 billion USD in Vietnam in the future, while Lotte is completing its Lotte Mall in Hanoi and constructing a Lotte Eco Smart area in Thu Thiem of HCM City.

In early September 2022, while attending the groundbreaking ceremony of the project, Lotte Chairman Shin Dong-bin said that Lotte Eco Smart Thu Thiem will mark the "starting point" for investment expansion activities of Lotte Group in Vietnam.

At the same time, SK is in the process of increasing its presence in Vietnam through large-scale investments in Masan and Vingroup. Hyundai Motor also operated Hyundai Thanh Cong No.2 Factory in Ninh Binh at the end of last year.

The Foreign Investment Agency said that in the first five months of this year, Vietnam attracted 962 new FDI projects worth over 5.26 billion USD, up 66.4% year on year in the number of projects and 27.8% in value.

In the January-May period, the RoK was one of the largest investors of Vietnam, making up 17.4% of the number of the total projects and 25.2% of the investment value.

The agency held that foreign small- and medium-sized investors have remained confident about the Vietnamese investment environment, while larger ones are considering big investment in Vietnam amid the impacts of the global minimum tax policy which will be applied in 2024./.

VNA