South Korea tops sources of FDI

Workers at the Hanel Electronics Co Ltd, a joint venture between the Ha Noi Electronics Company and South Korea’s Daewoo Electronics Group, assemble TV components. South Korea is now the biggest foreign investor in Vietnam

South Korea has become the biggest foreign investor in Viet Nam, over- taking Singapore in early August.

According to the latest figures from the Korea Trade-Investment Promotion Agency (Kotra), the total foreign direct investment (FDI) from South Korea to Viet Nam has reached US$10.33 billion, overtaking Singapore’s total investment of $9.69 billion.

ROK’s total FDI in Viet Nam in the first seven months of 2007 reached $1.43 billion, including $500 million from the Korean group Kumho Asiana, while the total investment from Singapore amounted to $1.31 billion.

South Korea was also the biggest foreign investor in Viet Nam last year with total FDI amounting to $2.7 billion. Korean companies accounted for four of the ten biggest FDI projects in Viet Nam in 2006.

Kotra said Korean companies’ investments in the sectors in urban development, entertainment and property projects were the most significant contributions to make South Korea the No. 1 investor in Viet Nam.

Experts from the Ministry of Planning and Investment said South Korea would remain the top foreign investor in Viet Nam in the near future.

This statement was confirmed after Dr Park Sam Koo, president of Kumho Asiana group, revealed that the Korean firm would invest a total $4 billion in their projects in Viet Nam.

Investment in two of Kumho’s projects, Giang Vo Cultural and Commercial Centre and Me Tri Convention Centre, amounts to $2.5 billion. Construction of these two projects, both located in Ha Noi, will be completed by 2010.

Under a plan by the Korean group Keangnam, construction of the Landmark Tower in Ha Noi, a 70-story building with total investment of $1.05 billion, is scheduled to begin later in August.

(Source:VNS)