On May 26, 2021 a meeting between Investment Promotion Center (IPCS) and Korean Chamber of Commerce and Industry in the South & Middle of Vietnam (KOCHAM) took place at Korea Trade Office in Ho Chi Minh city.
IPCS proactively proposes to meet, coordinate investment promotion activities and support businesses with KOTRA and KOCHAM. The meeting took place dynamically with necessary information exchange and participation of Ms. Tran Thi Hai Yen – Director of IPCS; Mr. Shon Young Il – Chairman of KOCAHM in the South & Middle of Vietnam; Mr. Kim Kwan Mook – General Director of KOTRA in Ho Chi Minh City.
At the meeting, Mr. Kim Kwan Mook – General Director of KOTRA in Ho Chi Minh City brought up difficulties of Korean investors, mainly relating to Tax, Work permit and Social insurance. He also stated that “In fact, Korean companies has been confronting many problems and need help from Vietnam. The above issues are common problems for not only Korean investors but also for other countries doing business and manufacturing in Vietnam.” Those mentioned problems have been reported to Central and Local agencies, and they have yet to resolve or respond.
Responding to the issues, Ms. Tran Thi Hai Yen, Director of IPCS said “According to assigned functions and duties, IPCS will support each Korean company to overcome and resolve difficulties during the investment process in Vietnam. Specific results in each case will bring quality and long-term cooperation between the parties.”
In 2020, Korea ranked 2nd regarding registered capital with a total investment capital of over 3.95 billion USD, accounting for 13.8% of the total registered investment capital among all countries and territories investing in Vietnam. In terms of total accumulated foreign direct investment capital by the end of 2020, Korea is leading with a total registered capital of over 70.6 billion USD (accounting for 18.4& of total investment capital). In addition, Korea has progressively become a strategic partner due to the shifting in capital inflows, its investment expansion in the post Covid-19 period flowing into Southeast Asia, especially into Vietnam. Korean companies investing in Vietnam have now contributed in all industries from service, F&B, tourism, insurance, electronics, etc.
“Korean companies wish IPCS would be the key to resolve the problems that they are facing during the investment process in Vietnam, furthermore, would bring a long-term and profound development in the future” said Mr. Shon Young Il – Chairman of KOCHAM at the meeting..
As a unit under the Foreign Investment Agency, Ministry of Planning and Investment, IPCS performing the function of supporting FDI enterprises as well as Vietnamese enterprises and investors; supporting in organizing training in the new Law on Investment, Law on Enterprises and other relevant legal documents for companies and investors.
In the upcoming time, the highlight event is “Investment Dialogue between Governments of Southern provinces and Korean enterprises – Korea Desk”, which is expected to take place in this July when the Covid-19 situation under control. The parties agreed on the contents of coordination and discussed methods of supporting companies to overcome difficulties.
At the same time, the parties will jointly organize a training session for Korean companies in order to have a better understanding about new laws, decrees and circulars, which is expected to take place in the third quarter of 2021.
Up to now, the Covid-10 pandemic situation in the world is still complicated, but Vietnam is still a bright spot to attract investment thanks to the efforts to improve the investment environment of the Government and ministries and sectors which opens up many opportunities for investors around the world looking for the ideal investment destination.
Investment Promotion Center – South Vietnam
Department of Information and Documentation