South Korean capital greatly contributes to local economic development

Update: 17-06-2019 | 10:34:59

South Korea now rank fifth among countries and territories making investment in Binh Duong province, significantly contributing to the local medium and long plan on socio-economic development.

Enterprises increasing capital

According to provincial Department of Planning and Investment, the whole province in the first five months of 2019 absorbed US$1.77billion in FDI capital, up 58% compared to the same period or 79.1% of the year’s plan. The province has so far ranked third in FDI attraction nationwide with total registered FDI capital of US$33.3billion and 3,585 FDI enterprises in operation. Among them, 9.3% are South Korean enterprises with total investment capital of US$3.089billion. Most of them focus on heavy and support industries…

Production of Kolon Industries Binh Duong factory at Bau Bang district-based Bau Bang Industrial Park

Also during the period, the province lured additional 32 South Korean-invested projects and 14 extra-ones. South Korean capital is strongly pouring into auxiliary industry, which is one of the province’s priority fields for investment. Some noticeable projects in auxiliary industry from South Korean investors in the province include Castec Vina Co.Ltd. totaling US$14.4million; NPC Toda Co.Ltd. capitalized at US$30million…

Till now, the province has attracted some South Korean projects with great capital, including Kumho Tire Vietnam Co.Ltd. capitalized at US$128.3million; DCT Partners Co.Ltd. with total investment of US$100million; Orion Vina Food Co.Ltd. totaling US$60million; Lotte Group’s plaza with US$40million…

Choi Jae Ho, Director of Panko Vina Co.Ltd., which has made investment in the province for more than 13 years with 4 times of increasing capital with US$60million said that the Vietnam-Korea Free Trade Agreement (VKFTA) was signed, giving boost to two-way trade. This has also contributed to helping the province absorb more capital from South Korean enterprises. South Korean enterprises have also highly appreciated the province’s investment climate. He added that not only his company increasing capital, many other enterprises from South Korea are also making procedures to make investment in the province.

Long effectiveness

At a recent meeting between leaders of provincial People’s Committee and the South Korean business community, South Korean Consulate General in HCM city Park Noh Wan said that Binh Duong is always an attractive destination for South Korean enterprises. Together with well-built infrastructure, the province has a lot of preferential policies for investors. He believed that the province will further absorb more South Korean enterprises for long investment in the coming time.

Whilst, Lee Kwi Jong, Vice-Chairman of province-based South Korean Business Association said that leaders of the province have made efforts in helping South Korean enterprises deal with their obstacles during the process of making investment herein. This made South Korean enterprises feel very satisfactory.

According to the Ministry of Planning and Investment, South Korean capital flowing into Vietnam increased rapidly over the past three years. Particularly, Samsung Group and LG Group poured nearly US$15billion and US$3billion into Vietnam, respectively.

Along with key projects of Samsung and LG, hundreds of South Korea’s satellite investors have also rushed to Vietnam. This shows that Vietnam in general and Binh Duong in particular are now ideal destinations for South Korean enterprises. With advantages in terms of infrastructure and open investment climate, it is sure that the province will absorb more great FDI projects from South Korea in the coming time.

Reported by Khanh Vinh-Translated by K.T

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South Korean capital greatly contributes to local economic development

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