HO CHI MINH CITY: Vietnam expects a strong investment wave from South Korea amounting to tens of billions of US dollars soon, according to the Foreign Investment Agency (FIA) under the Planning and Investment Ministry.

Speaking at the 2024 Vietnam-Korea Plus Partnership Week in Ho Chi Minh City on Tuesday, Do Nhat Hoang, director of the FIA, said South Korea has been one of the leading countries investing in Vietnam.

As of June it had invested nearly US$87.5bil in more than 10,000 projects, with manufacturing accounting for nearly 75% of the amount, he said.

He said he appreciated South Korean firms for their quick implementation of projects, high quality and technology, social responsibility and care for employees, and strict compliance with the law.

In terms of official development assistance (ODA), South Korea is also a big contributor, with Vietnam accounting for 20% of its total ODA, mainly with loans to fund urban transport infrastructure, education, training, environment, clean energy, and information technology, according to the official.

South Korean investment is expected to rise in the wake of Prime Minister Pham Minh Chinh’s visit to South Korea earlier this month. The prime minister met with the chiefs of 14 leading South Korean companies that plan to invest billions of US dollars in Vietnam, during his visit.

Vietnam is now more selective about foreign direct investment (FDI), with an increased focus on quality, efficiency and sustainability.

The country is now also prioritising investment in electronics, semiconductors, renewable energy, digital economy, digital transformation, high-tech agriculture, financial centres, innovation, and research and development.

Vietnam also wants foreign investors to link up with domestic businesses.

To attract FDI, the country has worked hard to stabilise its economy, speed up institutional and investment reform, develop infrastructure and high-quality human resources.

The government has also readied land to meet the needs of investors, promoted supporting industries and put in place policies to support new investors.

It is also promoting digital, green and energy transformation and innovation, developing information technology infrastructure and holding regular dialogues with investors to help overcome their difficulties.

Lee Ji Hyung, head of the Korea Trade-Investment Promotion Agency’s international trade and economic collaboration division, said since they established diplomatic relations in 1992, ties between Vietnam and South Korea had flourished in many areas, including investment and trade.

Bilateral trade increased by 162 times from US$490mil in 1992 to US$79.42bil in 2023, he pointed out.

Vietnam was South Korea’s third-largest trading partner last year after China and the United States, and also the third-largest investment destination in 1980-2023, he said.

Organised by South Korean trade and investment promotion organisation Kotra, the 2024 Korea-Vietnam Plus Partnership Week also featured a Vietnam-Korea Cooperation Forum in promising future fields such as smart industries, a business-to-business matching programme for smart industries, a seminar introducing prospective ODA projects, and a Korea Shopping Festival from July 17 to 21, he said.

“I hope this will be a good opportunity for South Korean enterprises with technological capabilities to participate in key infrastructure projects that Vietnam is implementing such as subways, highways, and liquefied natural gas plants.”

At the Vietnam-Korea Cooperation Forum on promising future fields in Ho Chi Minh City on Tuesday, 150 delegates, including from the government and businesses from the two countries, presented opportunities and solutions to promote bilateral cooperation in the future.

 - ANN