South Vietnam has turned a major investment destination for South Korea in recent years, with statistics from the key southern economic region showing the latter has continually been among the top sources of foreign direct investment (FDI) capital there. The investment was mainly in industries like footwear, fibre, textile, electronics and machinery manufacturing.
In 2018, South Korea took the lead in investing in Dong Nai with about 40 projects worth over $234.2 million. It ranked second among foreign investors in Binh Duong with total registered capital of over $302 million.South Vietnam has turned a major investment destination for South Korea in recent years, with statistics from the key southern economic region showing the latter has continually been among the top sources of foreign direct investment capital there. The investment was mainly in industries like footwear, fibre, textile, electronics and machinery manufacturing.#
The Binh Duong province administration recently licensed the Kyungbang Vietnam Co. Ltd to raise its investment capital by $40 million to boost production capacity to 9,000 tonnes of cotton fibres and 11,000 tonnes of blended fibres per year. With this, the firm’s project now has a total capital of more than $219 million.
In late February, the Changshin Vietnam Co. Ltd began constructing a footwear unit worth $100 million in Tan Phu Industrial Park in the Dong Nai province. The plant will manufacture over 27 million pairs of shoes annually when it starts production in 2020.
This is the biggest FDI project in the province since the beginning of this year, according to a Vietnamese newspaper report.
The company with South Korean stake has two production facilities in the province’s Thanh Phu Industrial Park, including a shoe sole painting workshop that has an investment of $4 million.
At a recent meeting with Dong Nai’s authorities, South Korean vice consul general at Ho Chi Minh City Chung Minchul admitted a large number of firms from his country want to expand their investments in the province as they are operating profitably.
By 2018 end, Korean businesses had invested more than $2.7 billion into around 600 projects in Binh Duong, according to director of the Binh Duong provincial department of planning and investment Nguyen Thanh Truc.
The projects include Kolon Industries ($220 million), Kyungbang Vietnam Co. Ltd over $219 million), and Kumho Tire Vietnam Co. Ltd ($128 million). (DS)
Fibre2Fashion News Desk – India
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