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Vietnam advised to make policies clearer to attract Korean investment

Vietnam advised to make policies clearer to attract Korean investment  


Many investors from the Republic of Korea (RoK) hold that Vietnam is an attractive destination, but it still needs clearer policies to attract a new investment wave from the Northeast Asian country, reported Dau tu (Vietnam Investment Review).

With fast digital transformation and a young population, Vietnam is currently an attractive destination for Korean businesses, Vice Chairman of the Korea & Vietnam Economic and Cultural Association (KOVECA) Kwon Seung-taek told a recent conference promoting Korean investment in Ho Chi Minh City and other southern localities.

This event attracted 30 businesses and 50 enterprises of the RoK who came to explore investment chances in many areas, including infrastructure, urban development, health care, education, renewable energy, high technology and vocational training.

He said Korean firms boast technology, technique, experience and large capital while Vietnam has a diverse market and a young and abundant workforce.

If the two countries enhance investment cooperation, bilateral trade will grow correspondingly. Amid global trade uncertainties, if they can capitalise on opportunities, the bilateral trade targets of 100 billion USD by 2023 and 150 billion USD by 2030 are completely achievable, Kwon emphasised.

Many Korean investors believe that the two countries still have much room for cooperation in multiple spheres.

In the past, Korean investments mostly concentrated in big cities like Hanoi, HCM City and neighbouring provinces, but now they have expanded to many other localities. They are also shifting from labour-intensive industries to manufacturing and high technology sectors.

However, they also hope Vietnam to have clearer investment policies.

CEO of JP Investment Choi Jeong-pil recommended the country elaborate on the projects it is inviting investment to so that investors and investment funds can make consideration.

He also suggested favourable conditions for investment funds to engage in the equitisation of State-owned enterprises, noting that their presence will help improve those firms’ capacity and participation in global supply chains.

Meanwhile, a business in the environmental sector underlined the need for the Government’s assistance since waste treatment projects are long-term investments that last for 20 - 30 years.

The company added it is important that the Vietnamese Government has transparent and consistent policies in order to attract Korean investment./.