In an interview with Vietnam Investment Review, Kim Heung Soo, Chairman of the Korean Chamber of Commerce & Industry (KOCHAM) in Vietnam, said RoK investment in the country used to primarily focus on production sectors such as apparel, handbags, and footwear.
Capital has now been steered towards high-tech industries such as electronics, IT, automobiles, construction materials, and services, he explained. In addition to Samsung and LG, leading RoK enterprises such as Hyosung, the SK Group, and Hyundai Motors are also investing in these fields.
Analysts have noted that Vietnam continues to benefit from production chains being moved into the country. RoK giants like Samsung and LG are also building research and development facilities in Vietnam, proving that it is moving up the value chain and attracting more high-quality foreign investment.
Dean Rolfe from audit, tax, and advisory services provider KPMG Vietnam noted that one reason behind capital flowing into Vietnam’s high-tech sector is the diversification of production chains.
The southern province of Dong Nai is among the key destinations of RoK investors. It is currently home to 400 projects from the RoK worth more than US$6.6 billion, making the country the largest investor among the 43 countries and territories pouring capital into the province.
In neighbouring Binh Duong province, meanwhile, the Investment and Industrial Development Corporation (Becamex IDC) and its RoK partner have proposed an investment in building a 900-ha science and technology industrial park. Becamex IDC said they have prepared the necessary paperwork for the project and identified potential tenants.
The RoK is ranked fifth among the countries and territories investing in Binh Duong, with over 800 projects worth nearly US$3.2 billion.