New hope for stronger Vietnam-RoK investment cooperation

Samsung Electronics factory in Bac Ninh (Photo: VNA)

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

During the 3-day visit, businesses of the two sides are expectedto sign a number of cooperation deals as leading RoK manufacturers are seekingmeasures 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 bothsides.

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

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

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

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

At the same time, SK is in the process of increasing its presence in Vietnamthrough large-scale investments in Masan and Vingroup. Hyundai Motor also operatedHyundai 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 investmentvalue.

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

VNA