HANOI - South
Korea has topped the list of 78 countries and
territories that are investing in Vietnam, with
1,458 projects worth US$9.36 billion in total. The
figures show the increasing emergence of South
Korea as Asia's second-fastest-growing economy, as
it reported investments in Vietnam of just $5.3
billion two years ago, ranking fourth among 74
foreign investors.
Officials from the
Vietnamese Ministry of Planning and Investment
have forecast a big breakthrough in the flow of
Korean investment in the near future, citing
recent moves by South Korean
businesses as the main
reason.
Park Sam-koo, chairman of the
Kumho Asiana Group, one of South Korea's largest
firms, said his company is planning to pour an
additional $4 billion into some projects in
Vietnam.
The firm's prominent projects are
Giang Vo Cultural and Trade Center and Me Tri
Exhibition Center, both in the capital city Hanoi,
with a combined investment of $2.5 billion.
Kumho Asiana had previously pumped $1
billion into Vietnam. The Daewoo Construction Co -
a subsidiary of Kumho Asiana - will kick off
construction of a $300 million urban center, named
Tay Ho Tay, in Hanoi in October.
Teachang
Corp also decided to inject $40 million in a new
denim plant in the Red River Delta province of Nam
Dinh after its joint venture with the Vietnam
National Textile and Garment Group (Vinatex) and
Thien Nam Ltd Co found initial success. The plant
is capable of turning out 30 million meters of
denim per year.
At the ninth meeting of
the Vietnam-South Korea Joint Economic Committee
held in Hanoi this month, many leading Korean
companies showed interest in information
technology, energy, services, commerce and finance
in Vietnam.
Kim Young-ju, minister of
industry, trade and energy, who led the South
Korean business delegation, told local reporters
that bilateral cooperation would be expanded
because of Vietnam's large workforce and abundant
natural resources and South Korea's advantages in
technology, capital sources and development
experience.
The minister added that
Vietnam's opening of its market after joining the
World Trade Organization and the enforcement of
the South Korea-ASEAN (Association of Southeast
Asian Nations) Free Trade Agreement from June 1
would facilitate operations of Korean businesses
and make Vietnam more attractive to Korean
investors.
Brokers in on the
action The Vietnamese State Securities
Commission last week granted licenses to two
Korea-based securities and fund management
offices. Located in Ho Chi Minh City, Bridge
Securities and Golden Bridge Asset Management will
carry out market research and promote securities
cooperation between Vietnam and South Korea and
help speed up cooperative projects between
domestic and overseas securities companies.
"The licensing will help domestic
securities companies expand their businesses
overseas and we will also learn advanced
techniques of securities operations and management
from Korea," said a commission representative.
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