South Korea poured US$4.46 billion into 405 projects in Vietnam in 2007, topping among countries and territories investing in the Southeast Asian country for the second consecutive years, the General Statistics Office (GSO) reported December 31.
The runners-up were British Virgin Islands with US$4.26 billion, Singapore with US$2.6 billion, Taiwan US$1.73 billion, Japan US$965 million, China US$460 million and the U.S. US$358 million.
South Korea’s investment has focused on real estate and other some key sectors such as energy, chemicals, petrochemical and steel production in stead of garment and footwear as previously, the ministry said.
Keangnam Group was the biggest South Korean investor in Vietnam last year with a US$1-billion project to build the 70-storey Hanoi Landmark Tower in Hanoi.
It was followed by Charmvit Group, which will build a US$500 million 27-storey Hanoi Plaza Twin Tower with a five-star hotel and a high-end office building.
According to the Korea Trade Investment Promotion Agency (Kotra) not only small and medium-sized businesses but also more big firms from South Korea are eying Vietnam’s key industrial sectors such as petrochemical, oil refinery and steel projects.
The agency added that the Southeast Asian country has become an attractive destination for South Korean companies for many advantages, including low-cost labor, an improved investment environment, a rapid economic growth and an ideal geographical position at the center of the ASEAN bloc.
The agency, however, noted that businesses from South Korea have still complained about poor infrastructure, high land price as well as lack of information about Vietnam’s investment environment.
To date, South Korea has injected nearly US$12 billion into Vietnam, wining the first position in the list of more than 80 countries and territories investing in the country. (GSO, VNA)
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