Dong Nai City expected to remain a “land of opportunity” for foreign investors: RoK’s Consul General Jung Jung Tae

In recent years, Dong Nai has consistently affirmed its position as a preferred destination for foreign investors, ranking among the country’s leading localities in investment attraction, industrial development, state budget contributions, and job creation.

The achievements mentioned above are due in no small part to foreign direct investment (FDI) firms, including RoK’s enterprises. Especially, as Dong Nai transforms into a city with many changes, a reporter from Dong Nai Newspaper and Radio, Television had a conversation with Jung Jung Tae, Consul General of the Republic of Korea (RoK) in Ho Chi Minh City.

Jung Jung Tae, Consul General of the RoK in Ho Chi Minh City. Photo: Khanh Loc

* The National Assembly has just approved a Resolution on the establishment of Dong Nai City. What are your thoughts on this, and what are your aspirations for Dong Nai after it becomes a city?

- First of all, I would like to extend my congratulations to Dong Nai on its elevation to city status.

Becoming a city is expected to provide the new Dong Nai with greater autonomy in governance and administration. In particular, in the financial–budgetary  field, both the level of autonomy and the effectiveness in organizing budget revenue and expenditure activities, based on tax revenues, are projected to improve further.

The new Dong Nai City will have more favorable conditions to clearly define priority areas in the process of policy formulation and implementation, thereby concentrating resources and increasing investment in key sectors. At the same time, the capacity to develop infrastructure systems serving business operations as well as the quality of public service provision are expected to continue to improve in a more synchronous and effective direction.

I hope that in the coming time, Dong Nai City will have more attractive investment attraction mechanisms to create an increasingly professional and modern investment and business environment. Dong Nai City will be an important growth pole of Vietnam, a crucial link in regional development, creating a modern, sustainable logistics ecosystem, and deeply participating in the global supply chain.

I believe that in the near future, when Dong Nai's investment environment improves and its attractiveness to investors increases, Dong Nai City will certainly be a strong magnet for attracting investment capital from domestic and international business community, especially the Korean enterprises.

For many years, the RoK has been one of the countries with an extremely good relationship with Vietnam in general and with Dong Nai province in particular. In your opinion, what are the outstanding results in the development cooperation process of the Korean enterprises in Dong Nai in recent years?

Since the two countries upgraded bilateral relationship to a comprehensive strategic partnership in 2022, Vietnam and the RoK have achieved remarkable developments in all political, economic, social, and cultural fields. At the same time, both sides have established the highest level of partnership as key global cooperation partners. Additionally, Dong Nai is one of the typical localities that clearly demonstrates this cooperation.

Leaders of Dong Nai province visit and congratulate Changshin Vietnam Co., Ltd., a Korean enterprise.

Dong Nai is currently home to more than 430 Korean enterprises operating across sectors ranging from footwear and textiles to logistics and electronic components. Major investors include Hyosung Group, Posco Group, and TKG Taekwang Vina Joint Stock Company, all contributing to promoting economic development and creating jobs for local workers. In addition, exchanges between local authorities have been carried out in a practical and substantive manner.

* The RoK is currently the largest investor in Dong Nai, with total capital exceeding USD8.1 billion. What do you think makes Dong Nai so attractive to investors?

- Dong Nai, together with Ho Chi Minh City, forms the largest economic region in Southern Vietnam. This is highly valuable for FDI enterprises. For Korean enterprises in particular, Dong Nai serves as an optimal base where production, export, and domestic distribution activities can be carried out simultaneously. Thanks to these advantages, many Korean enterprises have invested in Dong Nai, creating a favorable environment for synergy strength among Korean enterprises, from component supply to establishing cooperative networks.

Moreover, once Long Thanh International Airport becomes operational, Dong Nai will serve as a regional connectivity hub for Southeast Asia, enhancing logistics efficiency. It is expected to make a strong breakthrough, not merely as a manufacturing base but as a key center for industry and logistics. I see many similarities between this transformation and the RoK's Incheon Free Economic Zone.

* How are Korean enterprises currently viewing the investment environment in Vietnam? Does Dong Nai meet their criteria?

- Vietnam achieved an economic growth of over 8% last year and successfully completed administrative unit rearrangement. This is the most significant reforms since Vietnam's Doi Moi (Renewal) policy in 1986.

Leaders of Dong Nai province and representatives of departments and agencies visit the production factory of Changshin Vietnam Co., Ltd.

At the same time, Vietnam is undergoing strong changes such as simplifying administrative procedures, adopting a business-centered policy approach, easing regulations, and expanding digital administration. Along with that, large-scale infrastructure projects such as Long Thanh International Airport, Cai Mep–Thi Vai Port, and the North–South Expressway, are also being accelerated. The factors, ranging from stable growth and strong reform commitment to decisive infrastructure investment, continue to position Vietnam as an attractive investment destination for Korean companies considering relocation and market expansion.

The launch of national-level infrastructure projects right in Dong Nai is bringing positive prospects for investors. Administrative reforms and improved legal frameworks are also noteworthy. We expect that the changes and opportunities in Dong Nai will help steadily enhance its appeal to investors. However, rapid changes may lead to transitional disruptions in the production and business facilities of enterprises. We hope Dong Nai City will further increase dialogue opportunities with Korean investors.

* In your opinion, what are the strengths of Korean enterprises and in which fields do they want to invest and cooperate for development?

- With its convenient geographical location, combining existing sea and air routes, Dong Nai will have great potential for cooperation in the logistics sector. In particular, smart logistics is the most promising field.

Currently, the complex logistics center being built by the Korean enterprise Lotte Global Logistics in Dong Nai is fully equipped with both normal and cold temperature areas, helping to provide highly reliable products to consumers.

These infrastructures are expected to contribute to supporting the development of the fresh food and biopharmaceutical markets in Vietnam by reducing logistics costs and ensuring product quality.

In recent years, many Vietnam’s policies and regulations have been changing and being perfected, which will more or less affect the operational situation of businesses. How do you evaluate the companionship and support of Dong Nai City leaders for businesses?

Recently, during the administrative unit rearrangement and legal document amendments, some transitional disruptions have occurred. A typical example is the prolonged issuance of work permits, causing disruption in the import of food items due to amended regulations in the Food Safety Law. Although these can be considered issues arising during the process of perfecting the legal system, the inconveniences and risks perceived by businesses in reality will be much greater. Furthermore, the increase in ambiguity can lead to negative impacts.

To address this issue, the voices from real-world practice need to be reflected during the legal amendment process. Because no matter how advanced the legal system becomes, if it does not reflect the issues arising from real-world practice, the effectiveness of legal amendments will certainly not be achieved. Therefore, I believe that city leaders and relevant agencies need to strengthen engagements and listen to businesses' opinions more frequently. At the same time, it is extremely necessary to quickly build a system to resolve businesses' difficulties and problems promptly and effectively. Through this, consistent policy implementation and a transparent business environment will further enhance businesses' trust.

* In recent time, some localities and businesses in the RoK and Dong Nai have established trade connections. The RoK has cooperated and supported Dong Nai in implementing investment promotion programs in the RoK, exchanging and supporting human resource training experience. How do you evaluate this?

- To elevate Vietnam–RoK relations to a new height, local-level exchanges and people-to-people connections to enhance mutual understanding are essential. Dong Nai has maintained exchanges in industrial human resources and youth programs with local authorities in the RoK. I am very pleased about this and hope that as exchange activities are repeated and trust is increasingly strengthened, the scope of cooperation will also expand, creating a substantive cooperative relationship.

To achieve this, the RoK Consulate General will also support the expansion of multi-level exchange activities from officials, civil servants, businesses, universities to youth, thereby enhancing mutual understanding between the people of the two countries and building a foundation for cooperation towards sustainable future development.

* Dong Nai is prioritizing attracting high-tech, environmentally friendly projects that participate in the global supply chain. Can you share about the ability of Korean businesses to meet some of these criteria today?

- Dong Nai's development strategy focusing on high-tech, environmentally friendly approaches and the global supply chain is very timely, linked to the construction of the North-South expressway and Long Thanh International Airport. The Korean businesses already have competitive advantages in these fields and also have the capacity to fully meet Dong Nai's criteria and development orientation.

Leather and footwear production line at Chang shin Vietnam Co., Ltd. (Thanh Phu Industrial Park, Tan Trieu Ward).

To attract investment from competitive Korean businesses in related fields, I believe that Dong Nai needs to quickly complete legal regulations related to new industries such as advanced technology or high-tech, environmentally friendly technology. For strategic sectors that need investment attraction, Dong Nai should have strong preferential policies, especially administrative support.

* What are your plans to further promote diplomatic, investment, and trade relations between RoK and Vietnam, including Dong Nai?

- The Consulate General recognizes Dong Nai’s strategic importance, especially in the context of its multiple transformations in  urban management model as it becomes a city.

Therefore, the Consulate General will focus on expanding exchange opportunities to strengthen cooperative relations with Dong Nai. We hope to actively explore various channels of exchange, from organizing business dialogue conferences hosted by the Consulate to engaging with local leaders and officials responsible for implementation. Through this, the recommendations of Korean businesses – the major investors in Dong Nai – will be systematically compiled and conveyed, contributing to the establishment of an effective cooperation mechanism, ensuring that investors' recommendations and concerns are fully reflected in the overall development process, and bringing about the most practical results.

By Ngoc Lien – Translated by Mai Nga, Thu Ha