South Vietnam turns into investment hub for South Korea

South Vietnam has turned a major investment destination for South Korea in recent years, with statistics from the key southern economic region showing the latter has continually been among the top sources of foreign direct investment (FDI) capital there. The investment was mainly in industries like footwear, fibre, textile, electronics and machinery manufacturing.

In 2018, South Korea took the lead in investing in Dong Nai with about 40 projects worth over US$ 234.2 million. It ranked second among foreign investors in Binh Duong with total registered capital of over US$ 302 million.

The Binh Duong province administration recently licensed the Kyungbang Vietnam Co. Ltd to raise its investment capital by US$ 40 million to boost production capacity to 9,000 tonnes of cotton fibres and 11,000 tonnes of blended fibres per year. With this, the firm’s project now has a total capital of more than US$ 219 million.

Country wants India to move forward in textile

Vietnam wants cooperation from India in their advancement in textile sector. Since India has strength in textile technology and Vietnam is dependent on feed stock for its textile industry from many countries, they could mutually benefit by co-operation, says the Vietnam Chamber of Commerce and Industry (VCCI). On this, Vo Tan Thanh, Director of VCCI’s HCM City chapter said that the garment and textile sector happened to be the country’s second largest export earner last year after increasing by 17% to US$ 27.5 billion.

The sector urgently needs to invest in technologies to produce its own raw materials so that it can benefit from the FTAs, especially the TPP. India, the second largest garment and textile producer in the world, has advanced technologies and equipment at competitive prices, offering Vietnamese firms a good choice.

 

 
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