Vietnam remains an important destination for investors from the Republic of Korea (RoK), said a representative from the Korea Trade Investment Promotion Agency (KOTRA) in Vietnam.
A recent survey conducted by KOTRA showed that 82.8 percent of RoK businesses had a positive view of Vietnam’s business climate and 87.8 percent said they would not withdraw their projects here despite current economic difficulties.
However, the ratio of RoK investors satisfied with Vietnam’s investment climate had decreased in comparison with 95 percent in 2005, 93 percent in 2006 and 93.3 percent in 2007, the survey noted.
Investors listed poor information provision, cumbersome administrative procedures and the lack of skilled labourers as the leading problems, saying that these barriers might limit the influx of investment into Vietnam.
Over 40 percent of those surveyed complained about higher trade expenses in Vietnam over other countries and the cumbersome administrative procedures.
In order to provide a better environment for RoK investors, the country should continue to improve its investment climate, carefully consider extra business costs and develop adequate support industries, the representative said.
As of late 2008, the RoK has injected 15.8 billion USD into Vietnam, making it the fourth largest foreign investor with direct investment in the country.
Approximately 1,600 RoK firms are currently operating in Vietnam, accounting for 21 percent of the country’s FDI value and the creation of 354,000 jobs./.