Impressions of Korean cooperation and investment in Binh Duong

During 30 years of Vietnam-Korea friendship and cooperation relations, South Korea has invested in 759 projects with a total capital of nearly US$3.3 billion, accounting for 19% of the total investment projects and 8% of total foreign investment capital in Binh Duong. With advantages of investment and business environment, human resources, and infrastructure, Binh Duong continues to be an attractive destination for Korean investors.

Chairman of Binh Duong Provincial People's Committee Vo Van Minh (centre) and Binh Duong delegation in a recent visit to Korea

An attractive destination for investors

According to Provincial Department of Planning and Investment, Binh Duong has attracted 4,063 FDI projects with a total registered capital of nearly US$39.6 billion, ranking second in the country in terms of FDI attraction. Currently, Singapore ranks third among 65 foreign countries and territories having investment projects in Binh Duong, with nearly 300 projects and a total investment capital of nearly US$6 billion.

Some Korean projects with large investment capital in Binh Duong today are Kumho Tires Vietnam Co., Ltd., which invested US$128.3 million to produce car tires; DCT Partners Vietnam Co., Ltd. invests in hotel, commercial center, high-rise apartment projects with a total capital of US$100 million; Orion Vina Food Co., Ltd. invests in confectionery production with a total capital of US$60 million; Lotte Group invests US$40 million in a shopping mall...

Korea is currently the largest foreign investment partner of Vietnam with 9,433 valid projects and a total registered capital of US$80.55 billion, accounting for 18.6% of the total registered investment capital of the country.

If compared with the national data, the Korean FDI capital of Binh Duong is quite modest. But FDI investment from Korea in Binh Duong is forecasted to eye growth opportunities in the coming time, especially after the recent visit of Binh Duong Provincial Chairman Vo Van Minh to Korea.

An important thing for Binh Duong to stimulate investment from this key market is that the province's economic development policy in the coming period will focus on industries and sectors that Korean investors care about, such as processing, manufacturing, electronics, real estate, construction, logistics, commerce, healthcare... The province is implementing many measures to attract strategic partners from Korea to invest in industrial parks of the province with specific planning and preferential policies.

At investment promotion conferences with Korea, provincial leaders always appreciate and acknowledge efforts of local Korean business community, which have made contributions to the province's development.

Vo Van Minh, Chairman of Provincial People's Committee, said that Binh Duong is one of the provinces/cities with strong industrial growth pace in Vietnam. The province has been improving its investment environment, enhanced competitiveness, upgrading infrastructure, constructing and expanding industrial parks, created a clean land fund for investment attraction. Binh Duong believes that it is always a dynamic, innovative, convenient, safe locality and an attractive investment destination for investors.

Cooperation for development

The dynamism of Binh Duong in recent years has drawn great interest from Korean business community and investors. Kim Hyun Ho, General Director of Kumho Co., Ltd., said that he was really satisfied as choosing Binh Duong to set up their factory.

“Our company always received attention and favourable conditions from local leaders for business development. Therefore, Kumho continues to invest in expansion in Binh Duong. Currently, suppliers of Kumho are also choosing Binh Duong for their investment in production chains. We also accelerate an expansion project so that by 2023, the company will increase production to 36,000 tires per day,” added Kim Hyun Ho.

Besides economic development, Binh Duong has also actively widened international cooperation relationships. Up to now, Binh Duong has established friendly relations with Daejeon City and signed a cooperation agreement with Gangnam District (Seoul City) of Korea.

Through the cooperation agreement with Gangnam District, Binh Duong province wishes to promote friendly relations, while also creating opportunities for trade promotion and cultural exchange.

With the development strategy of "Binh Duong Innovation Region", the province is aiming at a balanced economy by increasing the proportion of services through the construction and development of the World Trade Center Binh Duong New City (WTC Binh Duong New City). This represents a concerted effort to make Binh Duong a new international trade destination.

Nguyen Van Loi, Member of the Party Central Committee, Secretary of the Provincial Party Committee, Head of the Provincial National Assembly Delegation, said that the signing of a cooperation agreement is extremely important, as a foundation for strengthening the cooperation relation, mutual understanding, turn towards the common development of both localities.

He believes that in the coming time, Binh Duong province and Korean partners will actively cooperate to stimulate trade, investment, culture and tourism, especially to organize international conferences and exhibitions, enhancing the positions and dynamic images of Binh Duong province and localities of Korea.

To promote economic diplomacy activities, attract foreign direct investment capital, and widely introduce its image, Binh Duong Provincial People's Committee cooperated with Ministry of Foreign Affairs to host "Meet Korea 2022" on 10 and 11 November.

The event aims to practically celebrate the 30th anniversary of the diplomatic relations between Vietnam and Korea, as well as an opportunity for Binh Duong and Korean partners to jointly evaluate cooperation results, the direction of cooperation between Vietnam and Korea in the future. Furthermore, the event contributes to strengthening the relationship between Binh Duong province and Korean localities and partners, thereby enhancing the strategic partnership between Vietnam and Korea.

Reported by Ngoc Thanh - Translated by Ngoc Huynh