Illustrative photo (Source: VNA) “The COVID-19 pandemic limited Korean investors as they could not physically visit properties. However, international flights resumed in March, which means investors can now travel freely to Vietnam and expand their business activities," said Andrew Lee, Senior Manager, Korean Desk Business Development, Savills Vietnam.
"We expect an increase in Korean real estate projects this year.”
There have been several notable investments this year. Lotte E&C invested 900 million USD into Lotte Eco Smart City Thu Thiem, and YSL Group is implementing a 300-hectare industrial project in Nam Binh Xuyen, Vinh Phuc province.
Thanks to its focus on sustainability, Nam Binh Xuyen Green Park is set to be a leading investment destination for domestic and foreign businesses in Vinh Phuc, according to Savills Vietnam.
Logistics real estate is popular with Korean investors, especially those looking to develop cold storage or smart warehouses.
Vietnam's real estate is increasingly popular with Korean investors. The proportion of investment reached 13 percent by the end of November 2021.
“Vietnam is an ideal destination for businesses that wish to diversify their profile and avoid being dependent on one country in the supply chain," Lee said. "Localities close to international borders and transport links like ports are attractive investment destinations."
"Vietnam’s improving investment environment also motivates Korean investors to boost capital inflows into real estate.”
In May, many countries, including the US, Japan, the RoK and Vietnam, joined discussions on creating a new Asian-Pacific economic initiative. The discussions led to the creation of the Indo-Pacific Economic Framework (IPEF), which will create opportunities for Vietnam within the region.
Trade between Vietnam and the RoK continues to thrive. In early 2022, the Ministry of Finance hosted a conference with the Korean Embassy and the Korean Chamber of Commerce to discuss tax and customs policies and administrative procedures. Both countries decided to amend the Double Taxation Agreement to improve trade flows.
According to the Ministry of Planning and Investment, since 2020, the RoK has been one of the leading FDI source countries. Manufacturing and processing investments have accounted for most Korean deals.
In the first five months of 2022, the RoK ranked second with an investment capital of over 2.06 billion USD, representing a 12.6 percent year-on-year increase.
With 112 new projects in 2022, the RoK had the greatest share or 19.4 percent. It also contributed the most additional capital.
“Industry in Vietnam is moving up the value chain, and high-value industries are increasingly evident," Lee said.
"Many Korean companies working with high-value-added goods like electronics and high-tech equipment have invested in the Northern Key Economic Zone. However, more traditional industries like textile manufacturing tend to be in the Southern Key Economic Zone.”/.
VNA
