Last updated: 16:55 - June 4, 2007
FTA to spur RoK investment into Vietnam http://www.nhandan.com.vn/english/business/040607/business_a.htm#FTA%20to%20spur%20RoK%20investment%20into%20Vietnam
Republic of Korea (RoK)'s firms are set to invest further in Vietnam's booming economy after a free trade agreement (FTA) between the two nations comes into effect on June 1, according to a report issued by the Korea Trade Investment Promotion Agency (KOTRA).
The agency said that in 2007, RoK firms are expected to pour US $1.5 billion into large-scale projects, primarily in infrastructure construction and the metallurgy industry. The figure is lower than last year number but expected to grow at 10% this year as RoK enterprises take advantage of preferential tax treatment.
In 2006, the RoK was ranked first among countries and territories investing into Vietnam with 207 projects worth close to US $2.78 billion on the books. In total RoK investment capital in Vietnam stood at US $7.8 billion by late last year and accounts for 18.5% of Vietnam's total foreign investment.
According to RoK economic experts, Vietnam has increasingly become an attractive business destination for RoK firms, as giants such as Posco, Samsung, Lotte and Kumho & Asiana have kicked off a new wave of investment in the Southeast Asian country.
RoK small-and medium-sized enterprises are also expected to increase their investments in the market or shift their representative offices from China to Vietnam in a bid to diversify their reliance on the world's fastest growing economy, the report said. (VNA)
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