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BUSINESS REPORT

Foundation of success

As the two countries’ relationship strengthens, South Korean enterprises
are poised to broaden their investments in Vietnam well into the future.

| By PHUONG HOA

Doosan Electro-Materials Vietnam, under
South Korean conglomerate Doosan,
revealed that it is planning to make annual
investments of at least $20 million in the
province to 2026 and will also launch a
new expansion plan there starting from
2027. Prior to this, the Doosan Corporation
and provincial authorities signed an MoU
on enhancing cooperation in the electro-
materials business, which took place during
South Korean President Yoon Suk Yeol’s
visit to Vietnam in June last year.
Another South Korean company, KP
Aero Industries, a supplier of components
for Boeing and Airbus aircraft, held a break-
ing-ground ceremony for its $20-million
plant in the central city of Da Nang in late
January. The 2-ha KP Vina Aircraft Com-
ponent factory is set for completion in Sep-
tember and will employ 500 people. Located
at the Da Nang Hi-Tech Park, it will man-
ufacture and assemble aircraft components,
mong countries and territories financial investment funds around the world including APU doors, MIC tips, wingboxes,
investing in Vietnam, South Korea regarding the potential and investment winglets, and flap supports for Boeing 787
A has consistently been at or near the opportunities in Vietnam’s financial market, and 737 MAX aircraft. Representatives
top in recent times. Figures from the Foreign chaired by Prime Minister Pham Minh from KP Aero Industries said they first
Investment Agency (FIA) at the Ministry Chinh, who was attending the mid-January dreamt of establishing an aviation compo-
of Planning and Investment show that it international gathering, Mr. Cho Huyn Sang, nent factory in Da Nang ten years ago.
invested $4.4 billion in Vietnam over the Vice Chairman of the Hyosung Group, which Thanks to enthusiastic support along with
course of 2023. As of the end of January, it specializes in electrical transformer manu- professional investment attraction efforts
was ranked first among countries and ter- facturing, revealed that the group intends from the city’s leadership and its outstanding
ritories investing in the country, with total to invest an additional $2 billion in Vietnam human resources, the corporation decided
capital of $85.95 billion in 9,891 projects. during 2024. He also noted that many other to invest in the central city. “The challenges
There are some 8,000 South Korean enter- South Korean companies are interested in in operating an aviation component factory
prises conducting business around Vietnam, establishing a presence in the country, so in Da Nang begin with this breaking of
providing an important link in bringing Hyosung counts it among the most effective ground,” a company representative said.
the two countries even closer together. investment destinations. “This is not an easy challenge, but with the
“South Korean investors aim to deepen Similarly, while working with leaders companionship and support of the city,
their cooperation with Vietnamese partners from the northern province of Hai Duong our dream will become a reality.”
by leveraging their expertise, resources, and in mid-February, a representative from In addition to their impressive results
networks to contribute to the country’s eco-
nomic development while ensuring mutual South Korean investment in Vietnam, 2018 - 1M 2024
benefit and sustainable growth,” said Mr. ($ billion)
Jeong Sang Cheol, President of VIVACE 7.92
Consulting & Engineering. 7.2 7.4

ACTIVE MOVEMENT
Along with the presence and prominent 4.88
activities of South Korean giants such as 3.9 4.40
Samsung, LG, Hyundai, the CJ Group, the
Lotte Group, the SK Group, and Shinhan
Bank, other major players from the country
46.02
have recently been increasing their investment million
and cooperation in Vietnam. For example,
at a forum during WEF Davos 2024 with 2018 2019 2020 2021 2022 2023 1M2024
representatives from leading banks and Source: Foreign Investment Agency (FIA)

22 | VIETNAM ECONOMIC TIMES | MARCH 2024 en.vneconomy.vn