Dong Nai still attracts Korean investors

​Motocross production in a Korean enterprise in Loteco Industrial Zone (Bien Hoa City)

In the first 3 months of 2020, Korea invested in the province about 21 new projects with a total registered capital of over 40 million USD, accounting for nearly 22% of the total new projects in the province. Currently, Korean enterprises have invested in the province about 440 projects and the majority are located in industrial zones (IPs).

*Large corporations comes to invest

Korean businesses have come to Dong Nai to invest in industrial production more than 20 years ago. However, in the last 5 years, this “wave” has increased rapidly and Korea has become the leading country among 43 countries and territories investing in the province and registered capital accounts for more than 20% of the total foreign direct investment into the province. In particular, most of the major projects located in industrial parks and in the field of industrial footwear support the textile industry, machinery, equipment and spare parts, electronic components, etc.

Many large corporations of Korea have poured capital into constructing production workshops in the provincial industrial zones such as: Hyosung, Posco, Chang Shin, Taekwang, Dong Jin, Woosung, CJ, Hwaseung...

Mr. Nam Jung Dae, General Director of Taekwang Vina Industrial Joint Stock Company in Bien Hoa 2 Industrial Park (Bien Hoa City) said, Taekwang Group has invested in Dong Nai relatively successfully, so in recent years it has increased its capital several times and expanded the production and export of shoes to many countries around the world.

Korean businesses investing in industrial zones in the province assessed that the reason for choosing Dong Nai was because of the complete infrastructure of industrial parks, convenient transportation and problems that were promptly solved by the provincial government. Therefore, many businesses after a few years investing in effective provinces have increased their capital by 2-3 times compared to the original to expand their production and business.

Mr. Lee Jeong Man, Head of Representative Office of Gyeongnam Province in Ho Chi Minh City said that Dong Nai is a place where industrial development, Korean enterprises investing in industrial zones are very convenient in finding partners to supply inputs and outputs for products. The successful early investment enterprises have helped the latter businesses feel more secure when coming to Dong Nai to set up production plants. Currently, many large Korean corporations are present in Dong Nai. Also according to Mr. Lee Jeong Man, in the coming time, with advantages in transportation such as Long Thanh International Airport, North-South Expressway, Ben Luc-Long Thanh Expressway, Bien Hoa-Vung Tau Expressway, etc., which being invested - will create more attraction for Dong Nai in inviting Korean investors as well as other countries.

*Attracting modern technology projects

More than 10 years ago, Dong Nai had a policy of selective investment attraction. Therefore, most projects of Korean enterprises investing in Dong Nai's industrial parks have modern technology and high-quality products, meet export requirements to many fastidious markets such as the United States, Europe, Japan… For example, products of Hyosung Vietnam Co., Ltd.; Posco Vietnam Co., Ltd; LG Vina Cosmetic Co., Ltd; etc., with goods are consumed domestically and exported to more than 30 countries and regions.

Head of the Dong Nai Industrial Zone Authority Cao Tien Sy commented: “About 5 years ago, Korean businesses invested in industrial zones increased and when licensed, they implemented the project quite quickly. Most of Korean enterprises' factories have modern technology to meet the province's requirements such as being environmentally friendly, using few and highly skilled labor, and earning stable incomes for laborers.”

Currently, many Korean businesses are seeking to expand their investment in Dong Nai in industrial fields. Mr. Lim Je Hun, Consulate of South Korea in Ho Chi Minh City, said that Korean businesses invest in the province in many fields such as industry, services, logistics, agriculture. Most businesses own modern technology, products of high quality in domestic and export markets are very good.

By Vi Quan