Hanoi – More and more businesses from the Republic of Korea (RoK) are coming to Vietnam to operate in supporting industries.
Tens of Korean firms took part in the Saigon Autotech & Accessories 2019 in Ho Chi Minh City in late May. Aside from introducing the latest products and technologies, they also came to seek partners to expand their production and business activities.
Tommy Ji, CEO of the auto spare part and cleaning product manufacturer JCWORKS, said the potential of the Vietnamese market is huge.
The company’s products are suitable for different weather conditions, while the climate in the RoK and Vietnam is similar, he said, expressing his confidence that the company will develop well in the Vietnamese market.
Justin Kim, a representative of the DesiKhan company, expressed his optimism about a bright outlook of the Vietnamese market, noting that as a leading producer of desiccants for car and motorbike lamps in the RoK, his firm is planning to expand operations in Vietnam.
He added many major Korean brands like Hyundai and Daewoo have set up factories in Vietnam while the Vietnamese carmaker VinFast is expected to sell its cars from this year. Therefore, the Vietnamese market is promising for his company, which hopes to find out potential partners in the country to promote production and sale.
Meanwhile, CEO of the Ktecrober company Dae Hey Kang said he and executives of tens of other Korean firms came to HCM City in late May to seek new opportunities. They specialise in technologies and solutions for smart city building.
They plan to organise a workshop in late June to introduce new smart city technologies. After that, they will continue learning about the local investment environment to carry out projects, he said.
According to a leader of the Saigon Hi-Tech Park, after Samsung raised the investment capital of its project in the park to 2 billion USD in 2015, many of its Korean suppliers have come to build factories, most of which are in supporting industries.
The newly-licensed Korean investors pledged to establish research and development centres for new Samsung products which are set to employ Vietnamese workers and transfer technology to local partners.
Lee Jonggun, Director General of the Korea Trade-Investment Promotion Agency (KOTRA), said in just the first half of May, more than 100 Korean enterprises told KOTRA that they hope to be connected to invest in Vietnam.
He added Vietnam currently ranks first among the investment destinations of Korean businesses. To assist them, KOTRA is scheduled to hold an investment forum in central Quang Nam province later this year.
The RoK is now one of the top foreign direct investors in Vietnam with about 7,000 valid projects worth almost 64 billion USD.