The Lotte building of the Lotte Group in Hanoi. (Source: lottecenter.com.vn)
The third investment wave from the Republic of Korea (RoK) is now at its peak, according to Moon Byungcheol, Commercial Counsellor at the RoK General Consulate in HCM City.
Addressing a RoK-Vietnam trade exchange event in HCM City on November 18, Moon Byungcheol said the RoK began investing in Vietnam in the 1990s, starting with labour-intensive projects.
Since 2005, RoK enterprises have shifted their investment to manufacturing and electronic, which could be considered the second wave.
The third wave began in 2009, with rising number of investment projects and greater project scale in traditional areas along with expansion to new areas such as food processing, consumer goods, service and entertainment, the commercial counselor said.
He cited CJ Group as a typical example of the third RoK investment wave in Vietnam.
Chang Boksang, Director of CJ Vietnam said the group entered Vietnam in 2005 and now it has 12 companies operating in a range of areas, from food processing, fertilizer and feed to TV shopping and film production and distribution.
CJ Vietnam is now employing more than 4,000 workers, and its revenues this year are estimated at 17 trillion VND (USD).
According to Kim Inho, Chairman of the Korea International Trade Association (KITA), the Vietnamese government’s open policies on foreign investment has attracted foreign enterprises, including those from the RoK.
In addition, Vietnam’s stable economic growth amidst the world economic crisis is another reason for RoK enterprises to boost investment in Vietnam.
He also acknowledged Vietnam’s progress in international integration through signing many bilateral and multilateral free trade agreements (FTAs).
In particular, the Vietnam-RoK FTA, which took effect at the end of 2015, has opened up a new era in the trade cooperation between the two countries and created a driving force for the RoK’s third wave of investment into Vietnam, Kim added.
Figures from the Vietnam Chamber of Commerce and Industry (VCCI) showed as at the end of October this year, there were 5,593 projects invested by RoK companies in Vietnam with total registered capital of 50 billion USD.
RoK-invested firms contribute close to 30 percent of Vietnam’s total export value and provide jobs to more than 700,000 labourers./.