Anticipating the new wave of South Korean investment in Vietnam.
On July 12th, the Daewoo Hotel in Hanoi welcomed over 400 delegates to the Conference on Promoting Korean Investment in Nghe An Province. This was an important event organized by the Nghe An Provincial People's Committee in coordination with the Korea Trade-Investment Promotion Agency (KOTRA). This activity was considered a new opportunity for Korean businesses, as 11 projects with a total investment of nearly $61 million are gradually taking root and establishing themselves in Nghe An.
(Baonghean)On July 12th, the Daewoo Hotel in Hanoi welcomed over 400 delegates to the Conference on Promoting Korean Investment in Nghe An Province. This was an important event organized by the Nghe An Provincial People's Committee in coordination with the Korea Trade-Investment Promotion Agency (KOTRA). This activity was considered a new opportunity for Korean businesses, as 11 projects with a total investment of nearly $61 million are gradually taking root and establishing themselves in Nghe An.
"Nghe An – a destination for South Korean investors"
The 29,500m2 Daewoo Hotel area was decorated with slogans and flags featuring the lotus flower symbol of President Ho Chi Minh's hometown to welcome the Korean Investment Promotion Conference in Nghe An. A delegation of officials from the Department of Planning and Investment and the Provincial Investment Promotion and Development Consulting Center also traveled from President Ho Chi Minh's hometown to the capital in advance to prepare for the influx of Korean investment into Nghe An. Welcoming each delegation into the hall, Mr. Nguyen Nam Dinh, Deputy Director of the Department of Planning and Investment, beamed as he shared: “Today, there will be over 400 delegates attending, including the Korean Embassy, leaders from central ministries and agencies, and domestic and foreign businesses. In particular, there are about 200 delegates from promising businesses and investors… To ensure the enthusiastic participation of delegates and businesses, we went to Hanoi beforehand to work with the Foreign Investment Department of the Ministry of Planning and Investment, the Korean Embassy, KOTRA leaders, and businesses. Our partners were very impressed with this approach; they saw the enthusiasm and sincerity in Nghe An province's investment promotion efforts.”
Leaders of Nghe An province held discussions with South Korean investors.
Photo: Nguyen Son
At 8 a.m., the Grand Ballroom on the first floor of the hotel was already full. Many reporters from central media outlets had arrived early, their colleagues marveling at the scale and grandeur of the conference they were holding. The organizing committee solemnly announced, "Our conference is honored to welcome the Ambassador Extraordinary and Plenipotentiary of South Korea to Vietnam, Mr. Jun Dae Joo, along with leaders from KOTRA in Hanoi and distinguished guests from central ministries and agencies, and leaders from Nghe An province…" Applause rang out in a warm and understanding atmosphere.
In his welcoming speech at the conference, Comrade Nguyen Xuan Duong, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee, affirmed: “Nghe An province always highly appreciates the quality and effectiveness of investments from Korean investors. We sincerely send you the message: “Nghe An – The ideal destination for Korean investors.” I hope that through this conference, Korean businesses and investors will gain a better understanding of the people and the potential of Nghe An province, so that in the future, Korean investment in Nghe An will not only increase in quantity but also in scale, quality, and effectiveness. With the motto of accompanying businesses, we are committed to consistently implementing the policies already issued, preparing clean land and infrastructure in economic zones and industrial parks; preparing human resources, upgrading airports, seaports, roads, railways, and supporting services to ensure investors operate most effectively.”
Ambassador Jun Dae Joo, the Korean Ambassador to Vietnam, stated: “2012 marks the 20th anniversary of diplomatic relations between Vietnam and Korea, and 2013 is the first year of the 30th anniversary of those relations. The relationship between the two countries is deepening more than ever, with an increasing number of Korean corporations and companies investing in Vietnam. Not only focusing on Hanoi and Ho Chi Minh City, Korean businesses are seeking investment opportunities in other provinces and cities to capitalize on the advantages of land availability and abundant labor resources in those localities. We are pleased to see that 11 businesses have invested or are investing in Nghe An, a promising area with great potential and a convenient transportation system and many other investment incentives.”
In the process of seeking investment in localities, Korean and other foreign businesses are interested in favorable factors such as road, sea, and air transportation, human resources, and preferential mechanisms. Nghe An province is highly valued by foreign businesses in meeting these requirements. As a crucial hub in the North Central region, a gateway to the East-West economic corridor, and possessing a strategically important position, Nghe An is striving to leverage its internal and external strengths to resolutely pursue a new path.
The province's policy encourages and welcomes investors with preferential corporate income tax rates, specifically: a preferential tax rate of 10% for 15 years for newly established enterprises from investment projects in areas with particularly difficult socio-economic conditions, economic zones, and high-tech zones established by the Prime Minister's Decision; a preferential tax rate of 10% for the entire operating period for enterprises operating in the fields of education and training, vocational training, healthcare, culture, sports, and environment. Enterprises are also exempt from tax for 4 years and receive a 50% reduction in tax payable for the following 9 years. In addition, enterprises are exempt from import tax on goods imported to create fixed assets for projects in the fields and areas eligible for import tax incentives, including: equipment, machinery, specialized transport vehicles, raw materials and supplies used to manufacture equipment and machinery in the technological process, and construction materials that are not produced domestically...
Over the past period, Korean businesses have invested in 11 projects with a registered capital of nearly $61 million, employing over 10,000 local workers. These are concrete and convincing proofs for Korean businesses to continue investing in Nghe An. Even more importantly, the friendly and cooperative relationship between Nghe An and Gyonggi Province (Korea), established in 2008, has created a deep foundation to elevate the relationship and cooperation to a new level. This is also the overarching goal of the "Conference on Promoting Korean Investment in Nghe An," aiming to attract more businesses to invest in the homeland of President Ho Chi Minh. This is further reinforced by the presentation given by Mr. Kim Tae Hyung, Director of HaViNa Kim Lien Company (Nam Dan), during the conference, affirming the successes of his investments in Nghe An province.
During the forum between Nghe An province and Korean businesses, on behalf of the provincial leadership, Mr. Ho Duc Phoc answered all questions raised and once again committed: “Nghe An province will support the costs of land leveling, infrastructure outside the project boundaries (roads, electricity lines, labor training); provide investment incentives and support for investment in the Southeast Economic Zone, support investment in the construction of infrastructure for small industrial parks, and support investment in agricultural and rural development...”
Mr. Kwon Kyoung Doug, Deputy Director of KOTRA Hanoi, also provided further information confirming the investment trend of Korean businesses in Vietnam. Currently, there are 3,552 projects by Korean businesses investing in Vietnam, with a total capital of $25.5 billion. Although the investment process faces certain difficulties due to the economic recession affecting all countries, it is believed that with the determination of local authorities and businesses, cooperation will continue to be enhanced, bringing benefits to both sides.
Mr. Kwon Kyoung Doug's confidence was further reinforced when KOTRA and Korean businesses signed a cooperation agreement with the People's Committee of Nghe An province, including a commitment letter and two investment projects: StrongPlus Elevator Co., Ltd., which manufactures elevators using modern Korean technology with a total investment of $10 million; and Global Sourcing International Co., Ltd., a Korean company investing in a garment export project with an investment of $2.5 million.
The enthusiasm of the delegates kept the Korea Investment Promotion Conference in Nghe An province going until 12:30 PM. Bidding farewell to the conference, upon receiving a gift of embroidered paintings depicting President Ho Chi Minh's paternal and maternal hometowns from the Nghe An Provincial People's Committee, Mr. Jun Dae Joo, the Ambassador Extraordinary and Plenipotentiary of Korea to Vietnam, affirmed: "We will visit President Ho Chi Minh's hometown in the near future."
Pearl
