FTA to spur RoK investment into VN
Vietnam Economic Times
FTA to spur RoK investment into VN
4 June 2007
Republic of Korea (RoK)’s firms are set to invest further into Viet Nam’s booming economy after a free trade agreement (FTA) between the two nations comes into effect on June 1, according to a report issued by the Korea Trade Investment Promotion Agency (KOTRA).
The agency said that in 2007, RoK firms are expected to pour 1.5 billion USD into large-scale projects, primarily in infrastructure construction and the metallurgy industry. The figure is lower than last year number but expected to grow at 10 percent this year as RoK enterprises take advantage of preferential tax treatments.
In 2006, the RoK was ranked first among countries and territories investing into Viet Nam with 207 projects worth close to 2.78 billion USD on the books. In total RoK investment capital in Viet Nam stood at 7.8 billion USD by late last year and accounts for 18.5 percent of Viet Nam’s total foreign investment.
According to RoK economic experts, Viet Nam has increasingly become an attractive business destination for RoK firms, as giants such as Posco, Samsung, Lotte and Kumho & Asiana have kicked off a new wave of investment in the Southeast Asian country.
RoK small-and medium-sized enterprises are also expected to increase their investments into the market or shift their representative offices from China to Viet Nam in a bid to diversify their reliance on the world’s fastest growing economy, the report said.
