South Korean investors in the electronics industry in Viet Nam will receive many incentives as part of the Government’s growing focus on this field for the country’s industrial development, officials told a conference held on Thursday in Seoul.

The conference was held by Korea Trade-Investment Promotion Agency (Kotra) and Viet Nam Trade Promotion Agency (Vietrade), in coordination with the Vietnamese Embassy in South Korea. Its aim was to promote cooperation between the two countries in the electronic and mechanical industries and to introduce the investment advantages for South Korean companies in Viet Nam.

Sun Seok-gi, deputy chairman of Kotra, praised Viet Nam for supporting firms in taking opportunities offered by the bilateral trade agreement which came into force at the end of 2015. He said that the conference provided an opportunity for participants to address difficulties encountered by firms and suggest measures to promote cooperation.

Vietnamese Ambassador to South Korea Nguyen Vu Tu said the Government of Viet Nam has placed electronic component manufacturing at the focus of its industrial development, adding that South Korean firms would be eligible for incentives when investing in this sector.

Viet Nam’s rapid international integration and active participation in a growing number of free trade agreements would also benefit South Korean firms investing in Viet Nam to penetrate and expand regional and global markets, he said.

Deputy Director of Vietrade Bui Huy Son said that to promote trade and investment, the two sides need to focus on their relative advantages. For example, Son said the Vietnamese Government recently issued a support programme for parts-supplying industry development.

South Korea has been the top foreign investor in Viet Nam since 2014, with 70 per cent of its investments going into manufacturing and processing.

According to Tran Kim Oanh from Vietrade, Viet Nam had a number of advantages for South Korean investors, such as social and macro-economic stability, a young population, big consumption market, advantages in exports, and attractive investment incentives. — VNS