As of June 2023, Nghe An province has granted investment registration certificates to 24 projects of Korean enterprises and investors with a total registered capital of 166.7 million USD.

Garment and electronic component projects operate efficiently

Out of 24 projects, there are 19 projects with a total registered capital of 70.97 million USD outside the industrial parks and 5 projects out of 95.73 million USD in the Southeast economic zone and industrial parks.

Haivina Kim Lien Garment Company (Nam Dan) is a 100% Korean-owned enterprise, invested in Nghe An since 2011.

Experiencing many difficulties, with the support and help of Nghe An province, committees, branches and Nam Dan district, the enterprise has made efforts to overcome difficulties and put into operation stably and efficiently, orders are always stable due to well-trained and reputable workers, the enterprise has built a reputation with partners, customers and partners.

Talking about the unit's activities, Ms. Chu Thi Ngo - Assistant General Director said: The company currently has 2,500 workers, the salary is from 6-8 million VND/month, excluding shift meals. In addition, there are other remuneration regimes such as accommodation support, travel assistance. With the active support of the government, security and production safety were ensured, especially the power cut due to hot and sunny weather does not affect production much.

At Sang Woo Viet Nam Factory, a 100% Korean-invested enterprise in VSIP Nghe An Industrial Park, production and business activities have remained stable after the Covid-19 pandemic. This garment factory is currently creating jobs for 1,379 local workers, mainly in the districts of Hung Nguyen, Nam Dan, Vinh, Thanh Chuong, Yen Thanh, etc. The company's goods are mainly exported to Europe and America with a capacity of 5 million products per year. Export revenue in the first 6 months of 2023 reached 105 billion VND, contributing 750 million VND to the state budget. The enterprise’s representative said that with the maximum support from Nghe An province, the Southeast Economic Zone Management Board, the enteprise has now come into stable operation and is continuing to recruit workers.

The fields of Korean enterprises investing in Nghe An are mainly textiles, electronic components production, consulting services, supermarkets, etc. In general, Korean FDI projects in Nghe An province over the past time have had positive impacts on the province's socio-economic development, creating jobs for about 15,000 workers, promoting exports and making a major contribution to the provincial budget.

Vegetables and fruits for sale at Lotte supermarket (Korea) in Vinh city

Practical projects of official development assistance (ODA) 

Over the years, with the good cooperation relationship between Viet Nam and Korea in general and Nghe An and organizations and enterprises in Korea in particular, Korea has had effective ODA projects. The construction project of Viet Nam - Korea Industrial Technology School supported by KOICA in 1999 is a typical example.

The Viet Nam - Korea Industrial Technology School was established on December 04, 1998 according to Decision No. 1272/QD.UBND of Nghe An PPC. In October 1999, the Phase I project was invested and built by the Korean Government with a total capital of 5 million USD; the counterpart capital of Nghe An province is 11 billion VND.

On February 15, 2007, the School was upgraded to Viet Nam-Korea Industrial Technology Vocational College according to Decision No. 258/QD-BLDTBXH of the Minister of Labor, War Invalids and Social Affairs, the Korean government continued to invest in phase II with a total capital of 2.45 million USD; the counterpart capital of Nghe An province is 30 billion VND.

Currently, the Viet Nam - Korea cooperation is a model of the traditional partnership in Southeast Asia. Recently, President of the Republic of Korea Yoon Suk-yeol visited Viet Nam and was accompanied by many large Korean enterprises, promising to attract more and better investment from Viet Nam and Korea in the coming time.

Particularly, Nghe An province will give priority to attracting investment projects with high added value, using modern and environmentally friendly technologies, especially in the high-tech sector; supporting industry; material production; financial services, banking; education; biotechnology for agriculture; infrastructure development, high-quality human resource training, research and development, modern services, logistics and supply chain, etc.

Regarding partners to attract investment, it is aimed at enterprises with financial capacity, supply chain, linkage and investment attraction for production of auxiliary products.

Mr. Un Hyun Soo - General Director of SangWoo said: Nghe An is a good land for Korean investors, with many projects operating effectively. Korean enterprises investing in Nghe An want to continue to receive support from the government and committees and branches in tax, customs clearance, environment, fire prevention, etc.

Tran Chau

Source: Nghe An Newspaper (June 29, 2023)