Korean capital is waiting for new investment wave into Vietnam
Hanoi, March 23, 2018
A new investment wave from South Korea to Vietnam has been noticed recently, waiting for a chance to flourish.
Recently, more than 600 Vietnamese and Korean enterprises, more than half of which are Korean, attended the Vietnam-Korea Business Forum during the official visit to Vietnam of the President of South Korea Moon Jae In. A series of meetings between the two sides (most currently was Vietnam - Korea Global Finance Conference) attracted hundreds of businesses to attend.
Direct investment from Korea into Vietnam is no longer a new trend with the arrival of large enterprises such as Samsung, LG, etc., bringing billions of dollars in current investment and technology, making Vietnam one of the largest investment bases in the region and in the world of Korea.
“The potential for investment cooperation between Vietnam and Korea is large and the cooperation is increasingly developing in many key areas such as manufacturing industry, infrastructure, and public-private cooperation, renewable energy and environment, distribution and services, ICT and software, agriculture and food processing, finance - banking, mergers and acquisitions (M&A) and startups (startups).
With the advantages of high economic growth, stable politics, competitive investment costs, and many policies to improve the business environment of the Government, it is forecasted that FDI inflows from Korea into Vietnam will increase strongly in the coming time, said Mr. Do Nhat Hoang, Director of Foreign Investment Department, Ministry of Planning and Investment.
According to the Vietnam Chamber of Commerce and Industry (VCCI) Chairman Vu Tien Loc, the investment wave from Korean to Vietnam is expected to be extremely large. Korean capital is not only focused on direct investment sectors and fields but also penetrated deeply into financial markets, securities, banks, and insurance through indirect investment inflows and capital M&A waves.
“The attractive point for the Korean business community is that the investment environment in Vietnam is becoming more and more attractive, especially when Vietnam is the member benefiting the most. from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This can be considered as a driving force for institutional reform, investment environment according to international standards, cooperation and construction of supply - production chains, access to markets of CPTPP member countries, ” Mr. Loc said.
Mr. Ted Kim - CEO of KIMC Investment and Management Consulting Group
Mr. Ted Kim, Mr. Ted Kim - CEO of KIMC Investment and Management Consulting Group from South Korea forecasts Korean investment in Vietnam will increase sharply in time.
“In Korea, there is a list of leading investment countries always mentioned by the investors, which is VIP (including Vietnam, Indonesia, and the Philippines), in which Vietnam always ranks first,” said Mr. Ted Kim.
The main reason is that Vietnam's global integration is becoming more and more extensive, investment flows will mix and Korean investors have seen great opportunities from Vietnam Free Trade Agreement - South Korea has begun to implement, the newly signed CPTPP Agreement has a great role and potential of Vietnam, the future has many benefits from the Regional Comprehensive Economic Partnership (RCEP) under negotiation and Vietnam - EU Free Trade Agreement (EVFTA) which is expected to take effect soon.
At the same time, the startup ecosystem and investment opportunities in the financial market, the opportunity to buy and sell debts from the restructuring of Vietnamese banks, and businesses are particularly attractive to investment funds from Korean.
“We are very impressed with the startup ecosystem and the potential from the innovative ideas of Vietnamese startups. Currently, KIMC is approaching several start-up projects introduced by National Entrepreneurs and Entrepreneurs. When introducing these projects, Korean financial funds and investors expressed great interest.
Regarding the debt trading field, the debts that the Asset Management Company of Vietnam Credit Institutions (VAMC) bought and many restructuring SOEs are also attracting the attention of Korean investors. We hope that the legal regulations in this area will soon improve transparency, which will help us access investment more easily, ” Mr. Ted Kim said.