Vietnam ready to create best conditions for foreign investors: Top Legislators

3/8/2022| 10:25

At a reception for Kim Jung-tai, Chairman of the Global Strategy Committee of the RoK's Hana Financial Group in Hanoi on August 2, National Assembly Chairman Vuong Dinh Hue assured that Vietnam is offering the best conditions for all economic sectors and investors, including those from the Republic of Korea (RoK).

Hana Financial Group Inc. formerly known as Korea Investment& Finance, started operations in 1971 with two branches. By the end of 2021, the Group's total assets reached 502,445 billion Wons (about $400 billion), putting it among the top 100 financial institutions in the world. Hana's network covers 24 countries with 153 branches, which is considered to be the Group with the largest foreign network in Korea. In Vietnam, the Group has two branches of KEB Hana Bank in Hanoi and Ho Chi Minh City.

NA Chairman Vuong Dinh Hue (right) shakes hands with  Kim Jung-tai, Chairman of  the Global Strategy Committee of the RoK's Hana Financial Group (Photo: VNA)..NA Chairman Vuong Dinh Hue (right) shakes hands with  Kim Jung-tai, Chairman of  the Global Strategy Committee of the RoK's Hana Financial Group. (Photo: VNA).

Welcoming Kim Jung-tai to Vietnam, the NA Chairman stressed that the Hana Financial Group is among the most important Korean investors in Vietnam and expected the group to contribute to perfecting the legal system as well as the investment and business environment in Vietnam.

He appreciated the fruitful cooperation between the group and the Bank for Investment and Development of Vietnam (BIDV) in banking activities and social security contributions to Vietnam in recent years.

The NA Chairman congratulated Hana's signing of an agreement to invest 35% of the charter capital of BIDV Securities JSC, saying this is a long-term strategic decision that reflects the confidence of foreign investors in the economic prospects of Vietnam.

In response, Mr. Kim Jung-tai said the Hana Group will work closely with BIDV to find solutions to increase investment and create the best cooperation results in the coming time. He also reaffirmed that in addition to participating in investment and business activities, it will contribute to social security work.

Kim also took the occasion to inform the Vietnamese NA leader that as the main sponsor for Korean football tournaments at all levels, the group hopes to have more Vietnamese players taking part in the RoK's professional tournaments, thereby nurturing the sports talents as well as increasing exchanges in the sports field between the two countries.

Vietnam welcomes Korean financiers to seek investment opportunities

At the Vietnam - Korea Cooperation Forum in Ho Chi Minh City on July 22, economic experts stated that Vietnam is rapidly developing into the preferred destination for businesses from RoK to invest in the hi-tech industry.

Speaking at the forum Nguyen Phu Binh, chairman of the Association for Liaison with Overseas Vietnamese, revealed that after 30 years since the establishment of diplomatic relations, Vietnam and the RoK have recorded a range of major economic, social, and cultural achievements.

Sharing this perspective, Kwon Sung-taek, vice chairman of the Korea-Vietnam Economic and Cultural Association (KOVECA), also emphasized that these achievements can be attributed to similarities in the culture and development goals of the two countries.

Two-way trade turnover between Vietnam and the RoK is equivalent to the RoK’s total bilateral trade turnover with the remaining nine countries in the ASEAN region, while RoK enterprises contribute approximately 25% to total Vietnamese export turnover, he said.

The KOVECA representative noted that there will be significant changes in the RoK’s investment in Vietnam, with priority given to the manufacturing, high-tech, and environment sectors instead of labour - intensive industries as had been the case in the past, reported VOV.

Vietnam is anticipated to become a destination for technology transfer and human resource training by investors from the RoK, particularly as it is one of the countries with the fastest digital transformation pace in the world.

He pointed out that aside from advantages of a young population and being an attractive investment destination, there remains hurdles in terms of investment attraction policies for financiers.

Nguyen Minh Lam, vice chairman of the Long An Provincial People's Committee, said the RoK has injected US$900 million into 209 investment projects in Long An, ranking second among countries investing in the locality.

To attract greater foreign direct investment (FDI), the province focuses on improving the investment climate and simplifying administrative formalities in a bid to facilitate investors’ operations.

Vietnam ready to create best conditions for foreign investors: Top LegislatorsPM Pham Minh Chinh hosts a dialogue with Republic of Korean associations and businesses on July 30, 2022 (Photo: VOV).

Regarding Vietnam’s trade and investment links with the RoK, on July 30, 2022, Prime Minister Pham Minh Chinh hosted a dialogue with Korean Ambassador Noh-wan and representatives of Korea associations and businesses in Vietnam.

"Vietnam and the RoK have become leading partners to each other, and economic cooperation is always an important pillar of bilateral ties. Also, Vietnam deeply appreciated that Korean enterprises have been operating fruitfully and considerably contributing to socio-economic development in our country," PM Chinh highlighted the two countries' flourishing relations in various spheres.

The RoK, the largest FDI partner in Vietnam at present, is investing in 9,383 projects worth over USD 79,8 billion in 19 of the 21 economic sectors and 59 of 63 localities nationwide.


Zoey Nguyen