Nghệ An lures South Korean investors

Nghệ An has promised South Korean investors favorable conditions to attract them into the province, especially those involved in the production of technology products.

At a conference on Korean investment promotion for Nghệ An held in Hà Nội last Friday, Nghệ An Vice Chairman Huỳnh Thanh Điền pledged that the province would provide investors with cleared sites, infrastructure and human resources.

Nghệ An Chairman Nguyễn Xuân Dương speaks at an investment promotion conference targeting Korean investors last Friday

In recent years, the government of Nghệ An has focused on improving the business and investment environment and organized many direct dialogues with entrepreneurs and investors to promptly resolve their difficulties.

The province sees administrative reform as a key task, applying the one-door mechanism, developing a multilingual website for investment promotion and introducing preferential policies to support investors.

Nguyễn Xuân Dương, chairman of Nghệ An, said the province had always appreciated the efficiency of South Korean investment.

Currently, South Korea has 12 valid projects in Nghệ An, with total registered capital of US$60.97 million, using more than 10,000 local workers.

In addition, many South Korean entrepreneurs and investors are seeking opportunities in Nghệ An.

“We pledge to adopt our policies consistently, prepare cleared sites and infrastructure at economic zones and industrial parks, prepare human resources, upgrade airports, seaports, roads, railways and supporting services so that investors can operate in the most efficient way.”

Said Dương.

Jun Dae Joo, South Korean Ambassador to Việt Nam, remarked that South Korean FDI in Việt Nam had been increasing in recent years, with Hà Nội and Hồ Chí Minh City (HCMC) attracting the most South Korean firms.

However, the costs of investment in these cities are very high, especially land and labor costs.

Therefore, South Korean investors are looking at other destinations, including Nghệ An, said Jun.

Kwon Kyoung Doug, deputy director of the Korea Trade-Investment Promotion Agency (KOTRA) said textile-garment companies from South Korea wanted to invest in Việt Nam to enjoy the preferential tariffs once the Trans-Pacific Partnership Agreement (TPP) was successfully concluded.

Many businesses are eyeing Nghệ An thanks to abundant land and labor in the province.

However, transport infrastructure is a weakness of Nghệ An since it takes up to seven hours to travel from Hà Nội to Nghệ An.

Moreover, human resources, despite abundant, are not well trained or skilled.

“If the above weaknesses are overcome, there will be more South Korean firms investing here.”

Said Kwon.

At the conference, Nghệ An signed a memorandum on cooperation with South Korea.

In addition, the province signed a memorandum on cooperation with Việt Nam-Korea Strong Plus Elevator Co. in an elevator production project worth US$10 million, and another on cooperation with Global Sourcing International Co. Ltd. in a garment project with initial investment of US$2.5 million.

 By THÙY DUNG & NGUYÊN NHUNG

Source: The Saigon Times Daily

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