Southern region attracts strong wave of investment from RoK

Economy, Vietnam, Vietnam Finance News
Textile-garment and footwear industries are a magnet for investment from the RoK in the southern region (Photo: VNA)

Hanoi (VNA) – Southern localities of
Vietnam has been a major destination for investment from the Republic of Korea
(RoK) in recent years, and local textile-garment and footwear industries have
proved to be a magnet for an influx of capital from this country.

In late February, the Changshin Vietnam Co. Ltd
began the construction of a footwear factory worth 100 million USD in Tan Phu
Industrial Park, the southern province of Dong Nai. Covering 14.3ha of land,
this plant will manufacture over 27 million pairs of shoes each year when
operational in 2020.

This is the biggest foreign direct investment
(FDI) project in Dong Nai since the beginning of 2019.

The RoK-invested company has already had two
production facilities in the province’s Thanh Phu Industrial Park, including a
shoe sole painting workshop invested with 4 million USD.

In the nearby province of Binh Duong, the local
administration recently licensed the Kyungbang Vietnam Co. Ltd to raise its
investment capital by 40 million USD to boost the production capacity to 9,000
tonnes of cotton fibres and 11,000 tonnes of blended fibres per year.

With such additional capital, the firm’s project
now has total capital of more than 219 million USD.

Statistics from localities in the southern key
economic region show that the RoK has continually been among the top sources of
FDI capital here.

In 2018, the RoK took the lead among countries
and territories investing in Dong Nai with about 40 projects worth over 234.2
million USD. Meanwhile, it ranked second among foreign investors in Binh Duong
with total registered capital of over 302 million USD.

Korean companies mainly invested in industrial
production like footwear, fibre, textile, electronics, and machinery
manufacturing. They are planning to develop many projects in supporting
industries in the coming time to supply materials for these production sectors.

At a recent meeting with Dong Nai’s authorities,
Vice Consul General of the RoK to Ho Chi Minh City Chung Minchul said a large
number of Korean firms are operating profitably in the province, so they want
to expand their investments.

Director of the Binh Duong provincial Department
of Planning and Investment Nguyen Thanh Truc noted as of the end of 2018,
Korean businesses had poured more than 2.7 billion USD into some 600 projects
in Binh Duong, including Kolon Industries (220 million USD), Kyungbang Vietnam
Co. Ltd (over 219 million USD), and Kumho Tire Vietnam Co. Ltd (128 million
USD).

Most RoK investors in Binh Duong have enjoyed effective
production and business performance. Most recently, 27 Korean companies
operating in various fields like cosmetics, nutritional supplements, electronic
components, construction, and garment manufacturing have come to explore
investment chances in the province.

Thanks to promotion efforts, the FDI inflow from
the RoK is forecast to increase even more strongly in the time ahead, Truc
added.-VNA

QBCA

Back to Top