Foreign direct investment (FDI) from Korean firms into Vietnam was estimated at US$2.86 billion in 2006, a record level so far, said the Korean Trade Investment Promotion Agency (Kotra).
The very impressive figure, accounting for up to 34.2 per cent of Vietnam’s FDI total capital last year, has make Korea become the top foreign investor in the country in the year, pushing Hong Kong, Japan and the US to lower positions.
Vietnam’s entry into the WTO is the most attractive factor for Korean investors as they hope that this will bring them new investment opportunities in the emerging Southeast-Asian market, the agency explained.
As many as 93 per cent of the 217 Korean firms investing in Vietnam said they are highly satisfied with business outcomes in Vietnam, according to a survey conducted in November-December last year by Kotra.
Korean investors will ship more investments to Vietnam, Malaysia and Thailand in the coming time, especially in the property sector, instead of traditional markets like the US, Canada and Australia, economic experts forecast.
This is demonstrated by the strong inflow of Korean companies to Vietnam seeking business opportunity in the fast-growing construction sector, including big names Kumho Asiana Group, POSCO Engineering and Construction and Doosan Heavy Industries & Construction Company.
Chairman of management board of Yaerin Real Estate Company Hong Cheong Hwa has planned to build offices for rent in Ho Chi Minh City after the recent visit to the city.
The property market in Vietnam promises bright prospects for investors with large capital, hi-tech and management capacity, she said, however foreign firms still lack detailed information to access the country. (New Hanoi, Vietnam & World Economy)
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