Ha Noi (VNA) – The Republic of Korea (RoK) topped the list of 82 foreign investors in Viet Nam in 2007 for the second consecutive year with 403 projects capitalised at a record of nearly 4.2 billion USD.
This is the highest yearly figure since RoK investors marked their presence in Viet Nam in 1988.
Aside from new investment, RoK enterprises poured an additional 467 million USD into their existing projects in the country, according to the Foreign Investment Department under the Ministry of Planning and Investment.
The RoK’s investment structure has changed with remarkable increases in both the number of projects and investment capital in real estate and other key industries such as energy, chemicals, petrochemical and steel production instead of the traditional focus on garment and footwear.
The East Asian country has also attracted attention for its large-scale projects. Charmvit Group recently began work on a 500 million USD project to build the 27-storey Ha Noi Plaza Twin Towers which will house a five-star hotel and a high-end office building while Keangnam Group invested 1 billion USD in building an office and hotel complex near the new International Convention Centre in Ha Noi.
According to Hong Ki Hwa, President of the Korea Trade-Investment Promotion Agency (Kotra), Viet Nam has become an attractive destination for foreign investors thanks to many advantages, including low-cost labour, an improved investment environment, a rapid economic growth and an ideal geographical position at the centre of the ASEAN bloc.
A recent survey by the Korea Trade Association showed that in the future, Viet Nam will be the second most attractive address for RoK enterprises, after China . At the moment, many large groups from the RoK such as Posco, Samsung, Lotte and Kumho Asiana are present in Viet Nam .
However, RoK investors are worried about poor infrastructure and high land price in Viet Nam in addition to the lack of information and language barrier.
To address those concerns, the Government has focused on upgrading and developing infrastructure, including electricity and water supply systems as well as traffic works and ports, to facilitate investment activities, said Nguyen Thi Bich Van, Deputy Director of the Foreign Investment Department.
Human resource training is also high on the list of the government’s priorities in the coming time, she added.
As well as cutting down import taxes on goods in line with the country’s commitments to the World Trade Organisation (WTO), Viet Nam will continue implementing its roadmap to open the service market, including telecommunications, transport, banking, insurance and securities services.-Enditem
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