South Korea the largest foreign investor in VietnamSeptember 01,2017 | 09:09 am
Country's investment totals $6.02 billion as at August, accounting for 26% of the total this year.
Illustrative image (Source:nld.com.vn)
South Korean investments in Vietnam this year surpassed $6.02 billion in August, accounting for 26 per cent of all foreign direct investment (FDI), making it the largest foreign investor in the country, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
Japan ranked second, with $5.74 billion in investment, then Singapore with $3.92 billion.
In the first eight months of 2017, total FDI capital reached $23.4 billion, an increase of 45 per cent year-on-year.
As at August 20, projects had disbursed $10.3 billion this year, up 5 per cent year-on-year.
Exports by the foreign-invested stood at nearly $96 billion, accounting for 72 per cent of total export turnover. Imports by the foreign-invested sector, meanwhile, reached more than $81 billion, accounting for 60 per cent of the total. Both exports and imports increased by about 15 per cent year-on-year.
Foreign investors have invested in 18 sectors in the country, with the processing and manufacturing sector attracting the most attention, with total registered capital of $11.69 billion, or 50 per cent.
Foreign investment went to 58 cities and provinces in the period. Ho Chi Minh City attracted the most, with $3.3 billion, accounting for 14 per cent. North-central Thanh Hoa province followed, with $3.06 billion, then northern Bac Ninh province with $3.05 billion.
South Korean investment in Vietnam had surpassed $50 billion by the end of 2016, making it the largest foreign investor in the country to date, according to the Korean Trade Investment Promotion Agency (KOTRA).
Many South Korean companies have arrived in Vietnam in recent times to seize opportunities in its developing economy.
Bilateral trade between Vietnam and South Korea is expected to reach $70 billion by 2020 due to the Vietnam-South Korea Free Trade Agreement (VKFTA), which came into effect a year ago.
From this year, 18 items will be subject to tariff reductions under the agreement, with trade value between the two countries to increase and become more balanced as a result.
According to Mr. Le An Hai, Deputy Head of the Ministry of Industry and Trade’s Asian Market Department, based upon the commitments made in the VKFTA, in the years to come the two countries will improve both their economic and political relationship.
Vietnam is to focus on introducing preferential mechanisms for South Korea while South Korea will continue to open up its market to Vietnamese goods, according to Mr. Hai.