Today: 21/06/2021 08:07:19 (GMT+7)

Korean newspaper highlights Vietnam’s economic potential

Korea JoongAng Daily of the Republic of Korea (RoK) has recently run an article highlighting Vietnam’s economic potential.

According to the article, the Vietnamese economy shows potential to grow even faster than the RoK’s thanks to its fortunate timing. With China’s economy saturated, many foreign companies, including Korean businesses, are shrinking their dependency on China, creating opportunities for Vietnam.

Korean newspaper, Vietnam’s economic potential, Vietnamese economy, labour costs, global value chain, official development assistance

Illustrative image.

Korean companies and those from other countries are rushing to build factories to replace those in China, where labour costs are no longer cheap, it said.

While Samsung Electronics has been making adjustments to its investments in China, it has also been expanding investment in Vietnam.

The changing global value chain due to the ongoing US-China trade war is also speeding up investment into Vietnam. As US companies have been relocating their plants from China, recruitment in Vietnam has been step up to meet the growing number of orders, the article said.

Korean firms’ expanded operations in Vietnam has also helped to improve social and cultural ties between the two countries, the article said, highlighting the increasing number of marriages between Vietnamese and Koreans.

The article said Vietnam could increase its role as the hub of Korean production that can also help Vietnam in developing its own technologies.

Major Korean groups such as Samsung, LG, Hyosung and Kumho, are investing in big production facilities in Vietnam. Hanwha Group made an equity investment of 400 million USD in Vingroup, and SK Group invested 470 million USD in Masan Group in their bets to take advantage of Vietnam’s growth that stands at 6-7 percent annually.

Vietnam is now one of the RoK’s main investment destinations as the flow of Korean capital into the Southeast Asian country reached 50 billion USD as of 2017.

Meanwhile, the RoK has been Vietnam’s second biggest provider of official development assistance (ODA), only after Japan, according to the article.

Hanoi’s rural development outcomes comprehensive, impressive: PM
Prime Minister Nguyen Xuan Phuc has described the outcomes of the new-style rural area building in Hanoi as “comprehensive, impressive” while addressing a conference reviewing the 10-year efforts by the capital city on September 21.
Top leader asks academy of politics to build development strategy
The Ho Chi Minh National Academy of Politics (HCMA) needs to clearly define its missions and visions to build a long-term development strategy, Party General Secretary and President Nguyen Phu Trong said while attending a ceremony marking its 70th founding anniversary in Hanoi on September 14.
Vietnam, Cuba to boost balanced trade development
Vietnam and Cuba agreed to boost the balanced development of bilateral trade and promote Vietnamese investment in the Caribbean nation during the 37th session of their Intergovernmental Committee that concluded on September 12.
Hanoi’s university wins top prize at AIoT app development contest
Five students from the Hanoi University of Science and Technology (HUST) won the first prize at the AIoT Developer InnoWorks 2019 (InnoWorks 2019) – a contest for teams’ AIoT application development on the WISE-PaaS platform.
Bac Giang is sole province nationwide exceeding development plan of compulsory social insurance
(BGO) – Bac Giang province has nearly 255,500 participants of compulsory social insurance (CSI) as of August 2019, accounting for 100.4 percent of the assigned target in 2019. Now there are about 14.6 million people joining the CSI across the nation, making up 95.1 percent of the set plan.

Source: VNA

Korean newspaper, Vietnam’s economic potential, Vietnamese economy, labour costs, global value chain, official development assistance
New comment has just been added. Click here
Sort:NewBest News