Illustrative photo (Source: VNA)“The COVID-19pandemic limited Korean investors as they could not physically visit properties.However, international flights resumed in March, which means investors can nowtravel freely to Vietnam and expand their business activities," saidAndrew Lee, Senior Manager, Korean Desk Business Development, Savills Vietnam.
"Weexpect an increase in Korean real estate projects this year.”
There havebeen several notable investments this year. Lotte E&C invested 900 million USDinto Lotte Eco Smart City Thu Thiem, and YSL Group is implementing a300-hectare industrial project in Nam Binh Xuyen, Vinh Phuc province.
Thanks to itsfocus on sustainability, Nam Binh Xuyen Green Park is set to be a leadinginvestment destination for domestic and foreign businesses in Vinh Phuc,according to Savills Vietnam.
Logistics realestate is popular with Korean investors, especially those looking to developcold storage or smart warehouses.
Vietnam's realestate is increasingly popular with Korean investors. The proportion ofinvestment reached 13 percent by the end of November 2021.
“Vietnam is anideal destination for businesses that wish to diversify their profile and avoidbeing dependent on one country in the supply chain," Lee said."Localities close to international borders and transport links like portsare attractive investment destinations."
"Vietnam’simproving investment environment also motivates Korean investors to boostcapital inflows into real estate.”
In May, manycountries, including the US, Japan, the RoK and Vietnam, joineddiscussions on creating a new Asian-Pacific economic initiative. Thediscussions led to the creation of the Indo-Pacific Economic Framework (IPEF),which will create opportunities for Vietnam within the region.
Trade between Vietnamand the RoK continues to thrive. In early 2022, the Ministry of Finance hosteda conference with the Korean Embassy and the Korean Chamber of Commerce todiscuss tax and customs policies and administrative procedures. Both countriesdecided to amend the Double Taxation Agreement to improve trade flows.
According tothe Ministry of Planning and Investment, since 2020, the RoK has been one ofthe leading FDI source countries. Manufacturing and processing investments haveaccounted for most Korean deals.
In the firstfive months of 2022, the RoK ranked second with an investment capital of over 2.06billion USD, representing a 12.6 percent year-on-year increase.
With 112 newprojects in 2022, the RoK had the greatest share or 19.4 percent. It alsocontributed the most additional capital.
“Industry in Vietnamis moving up the value chain, and high-value industries are increasinglyevident," Lee said.
"Many Koreancompanies working with high-value-added goods like electronics and high-techequipment have invested in the Northern Key Economic Zone. However, moretraditional industries like textile manufacturing tend to be in the SouthernKey Economic Zone.”/.
VNA
