(Nguyen Anh Tuan, deputy director general at the Vietnamese Ministry of Planning and Investment,

speaks with Korean journalists including The Korea Times during an interview at the ministry in Hanoi, Dec. 11. Korea Times photo by Kim Hyun-bin)

'Korea stands as top investor in Vietnam, with ranking expected to persist in long term'

HANOI — Nguyen Anh Tuan, deputy director general at the Vietnamese Ministry of Planning and Investment, emphasized the burgeoning relationship between Vietnam and Korea, particularly in the realm of investments. Tuan highlighted that Korea is the largest foreign investor in the country with total registered investments exceeding $84 billion.

"For many years until now, Korean investors have been the biggest investors out of 143 countries and territories investing in Vietnam. The total registered investment from Korea is more than $84 billion, with Korean companies present in 59 out of 63 provinces," Tuan said during an interview with a group of Korean reporters including The Korea Times at the Ministry of Planning and Investment headquarters in Hanoi, Dec. 11. “We are aiming to exceed $100 billion in total investment from Korea by 2025.”

The manufacturing sector leads Korean investments in Vietnam, with over 4,600 projects totaling more than $62 billion. Tuan noted that Korean investors' evolving interest in new sectors such as advanced technologies and renewable energy highlights the collaborative efforts of major Korean corporations like Samsung, SK and LG.

Tuan said Korea stands as the top foreign investor in Vietnam, and that the ranking will persist in the long term, promising the potential for future collaboration between Vietnam and Korea, coupled with a host of advantages that will pave the way for robust development.

Vietnam's attractiveness to investors, especially from Korea, is attributed to several key factors. Tuan emphasized the country's stable political system and robust economy, which demonstrated resilience during the COVID-19 pandemic, maintaining a positive GDP growth rate.

(LS Cable & System Asia's LSCV plant in Ho Chi Minh City, Vietnam / Courtesy of LS Cable & System)

"Vietnam is one of a very few countries in the world kept the positive GDP growth rate even in the period of COVID-19. In COVID-19, we still kept the GDP growth around 3 percent, and right after the pandemic, we reached a new peak with a growth rate exceeding 8 percent by the year 2022," Tuan said. “The population in Vietnam is now more than 100 million people and more than 60 percent of them are in the labor force, which means the working class mean is less than 35 years old, while the percentage of middle-income people continues to increase rapidly.”

Additionally, Vietnam boasts a favorable legal framework with ongoing improvements, as Tuan highlighted the introduction of significant laws on investment, pricing, public procurement and customs. The country has signed 16 free trade agreements (FTAs) with over 160 countries, expanding Vietnam to two-thirds of the world's consumer market.

Tuan emphasized the strategic geographic location of Vietnam in the heart of Southeast Asia, making it easily accessible within three to five hours from major Asian countries. The deputy director general also underscored the Vietnamese government's commitment to supporting foreign investors through a dedicated task force led by the prime minister, for prompt resolution of any issues.

"If you meet the requirements, the corporate income tax is just only 5 percent for a maximum of 37 years," Tuan said. "Seventy percent of foreign investors surveyed expressed strong belief in the Vietnamese government's policies, indicating a willingness to increase their investments in Vietnam."

Tuan envisioned long-term collaboration between Vietnam and Korea, leveraging the latter's strengths in technology, manufacturing, agriculture, health care and the digital economy to achieve Vietnam's ambitious economic development goals by 2030 and 2045.

"There are many sectors where we can develop our cooperation because you know for Vietnam we have a very ambitious plan to develop our economy," Tuan said.

"We have planned to develop our economy to be a developing country with the GDP per capita in the group of the high middle income by the year 2030 and by the year of 2045, we have planned to develop our country to become a developed country with GDP per capita in the high-income group."

Korea and Vietnam established diplomatic ties on December 22, 1992. Since then, they have continued to strengthen their ties through various diplomatic initiatives, economic collaborations and cultural exchanges.

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