Welcoming the new wave of Korean investment in Vietnam

(Baonghean) -On July 12, Daewoo Hotel (Hanoi) welcomed over 400 delegates to attend the Conference on Promoting Korean Investment in Nghe An. This is an important event organized by the People's Committee of Nghe An province in coordination with the Korea Trade and Investment Promotion Agency (KOTRA). This activity is considered a new opportunity for Korean enterprises as Nghe An has 11 projects with a total investment capital of nearly 61 million USD that are gradually taking root.

>> “Nghe An – destination of Korean investors”

The 29,500m2 Daewoo Hotel area was decorated with slogans and pennants with the lotus symbol of Uncle Ho'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 marched from Uncle Ho's hometown to the capital in advance, to prepare for the wave of Korean investment in Nghe An. Welcoming each group of guests into the hall, Mr. Nguyen Nam Dinh - Deputy Director of the Department of Planning and Investment happily confided: "Today there will be over 400 delegates attending, including the Korean Embassy, ​​leaders of ministries, central agencies, domestic and foreign enterprises. In particular, there are about 200 delegates who are enterprises and investors with great potential... To have the enthusiastic participation of delegates and enterprises, we went to Hanoi first, worked with the Foreign Investment Department of the Ministry of Planning and Investment, worked with the Korean Embassy, ​​leaders of KOTRA and enterprises. The partners were very sympathetic to this approach, they saw the enthusiasm and sincerity in promoting investment in Nghe An province".

Nghe An provincial leaders talk with Korean investors
Photo: Nguyen Son

At 8:00 a.m., the Grand Ballroom of the hotel on the first floor was already full. Many reporters from central press agencies also arrived very early, in the conversation their colleagues exclaimed, "Nghe An organizes such a large-scale and magnificent conference...". The organizing committee solemnly announced, "At the conference, we are honored to welcome the Korean Ambassador Extraordinary and Plenipotentiary to Vietnam, Mr. Jun Dae Joo, along with the leaders of KOTRA in Hanoi and distinguished guests from central ministries, branches, and leaders of Nghe An province...". The applause resounded in the warm and understanding atmosphere.

In his welcome speech at the conference, Mr. Nguyen Xuan Duong - Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee affirmed: "Nghe An province always appreciates the quality and investment efficiency of Korean investors. We sincerely send to you the message "Nghe An - Ideal destination for Korean investors". I hope that through this conference, Korean businesses and investors will understand more about the people and the potential land of Nghe An so that in the coming time, Korean investment in Nghe An will not only increase in quantity but also increase in scale, quality and investment efficiency. With the motto of accompanying businesses, we commit to consistently implementing the issued policies, preparing clean land funds and infrastructure in economic zones and industrial parks; preparing human resources, upgrading airports, ports, roads, railways and ancillary services for investors to invest most effectively".

Mr. Jun Dae Joo, Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to Vietnam said: “2012 is the 20th anniversary of Vietnam-Korea diplomatic relations, and 2013 is the first year of the next 30-year relationship. The relationship between the two countries is becoming deeper than ever, with more and more Korean corporations and groups investing in Vietnam. Not only focusing on investing in Hanoi and Ho Chi Minh City, Korean enterprises are looking for investment opportunities in other provinces and cities to exploit the advantages of land and abundant labor resources of the localities. We are very happy that 11 enterprises have invested in Nghe An, a promising and potential place with a convenient transportation system and many other investment incentives”.

In the process of seeking investment in localities, Korean enterprises as well as those from other countries are interested in favorable factors in terms of road, sea, air transport, human resources and preferential mechanisms. These requirements are highly appreciated by foreign enterprises in Nghe An province. As an important hub of the North Central region, the gateway of the East-West economic corridor, with an important strategic position, Nghe An is taking the lead in promoting internal and external resources to be determined on the new path.

The province's policy is to encourage and welcome investors with corporate income tax incentives, specifically: preferential tax rate of 10% for a period of 15 years for newly established enterprises from investment projects in areas with particularly difficult socio-economic conditions, economic zones, high-tech zones established under the Prime Minister's Decision; Preferential tax rate of 10% throughout the operation period for enterprises operating in the fields of education - training, vocational training, health, culture, sports and environment. Enterprises are also exempted from tax for 4 years, reduced by 50% of the tax payable in the next 9 years. In addition, enterprises are also exempted from import tax on imported goods to create fixed assets of projects in fields and areas with preferential import tax, including: Equipment, machinery, specialized means of transport, raw materials, supplies used to manufacture machinery and equipment in technological lines and construction materials that cannot be produced domestically...

In recent times, Korean enterprises have invested in 11 projects with a registered capital of nearly 61 million USD, employing over 10,000 local workers. These are concrete and convincing evidences for Korean enterprises to continue investing in Nghe An. More specifically, the friendly and cooperative relationship between Nghe An and Gyonggi Province (South Korea) has been established since 2008, creating a deep and lasting foundation to elevate the relationship and cooperation to a new level. That is also the consistent goal of the "Korean Investment Promotion Conference in Nghe An" to welcome more enterprises to invest in the homeland of President Ho Chi Minh. This is even more confident when, within the framework of the conference, Mr. Kim Tae Hyung - Director of HaViNa Kim Lien Company (Nam Dan) gave a presentation affirming the successes of investing in Nghe An province.

In the forum between Nghe An province and Korean enterprises, on behalf of the provincial leaders, comrade Ho Duc Phoc answered all questions and once again committed: "Nghe An province will support the cost of site clearance, infrastructure outside the project fence (roads, electricity lines, labor training); investment incentives, investment support in the Southeast Economic Zone, support investment in building infrastructure for small industrial parks, support investment in agricultural and rural development...

Mr. Kwon Kyoung Doug - Deputy Director of KOTRA Hanoi also provided additional information confirming the investment trend of Korean enterprises in Vietnam. Currently, there are 3,552 projects of Korean enterprises investing in Vietnam, with a total capital of 25.5 billion USD. Although the investment process has certain difficulties due to the economic recession that is strongly affecting all countries, we believe that with the determination of local authorities and enterprises, cooperation will continue to be enhanced, bringing benefits to both sides.

Mr. Kwon Kyoung Doug's belief was further confirmed when KOTRA and Korean enterprises signed a cooperation agreement with the People's Committee of Nghe An province with a commitment and two investment projects of StrongPlus Elevator Co., Ltd., manufacturing elevators using modern Korean technology with a total investment capital of 10 million USD; Global Sourcing International Co., Ltd., Korea invested in an export garment project with an investment capital of 2.5 million USD.

The enthusiasm of the delegates brought the Korean Investment Promotion Conference to Nghe An province to a close at 12:30. Saying goodbye to the conference, when receiving the gift of embroidered paintings of Uncle Ho's paternal and maternal hometowns from the People's Committee of Nghe An province, Mr. Jun Dae Joo - Ambassador Extraordinary and Plenipotentiary of Korea to Vietnam affirmed: "We will visit President Ho Chi Minh's hometown in the near future."

Pearl