S.Korea, Japan investors target Vietnam's logistics, infras and pharmaceuticals
The Hanoitimes - Vietnam is considered favorite destination for investors from Japan and South Korea.
A growing number of South Korean small and medium enterprises are looking to invest in Vietnam logistics and infrastructure sectors, as well as pharmaceutical companies, said Jiun Park, senior deputy director of the Korea Trade - Investment Promotion Agency (KOTRA), at the forum.
Recently, South Korean pharmaceutical companies have studied their counterparts in Vietnam. As part of the investment process, Korean investors look to transfer technology, capabilities in corporate governance and marketing to local companies, Park informed.
Although companies from both sides seem to be on the same wavelength, there should be more cooperation and support from each other. At present, Korean investors are forming a strategic coalition with their Vietnamese partners, Park added.
South Korean investors have been investing heavily in a number of countries, including Vietnam, Myanmar, Laos and Cambodia, but Vietnam remains their priority, according to Park.
Evidently, South Korea's foreign direct investment (FDI) to Vietnam accounts for 30% of its total FDI worldwide. However, only 5% of the capital flows into M&A activities, which is less than expected.
Nevertheless, the number of transactions is growing. Total capital injected through M&A deals from South Korea to Vietnam in 2017 was US$300 million, while the figure reached US$200 million in the first six months of 2018.
For his part, Masataka Sam Yoshida, senior managing director of Japan-based Recof Corporation, said that Japanese investors are keen on Vietnam's infrastructure sector, which could increase the total FDI from Japan to Vietnam to US$9 - 10 billion this year.
For the M&A market, the number of transactions is increasing as Japanese companies are very strong in these activities.
In this market, Japanese investors are new arrivals compared to those from South Korea or Singapore. Moreover, Japanese investors are very cautious and conservative in their investment, which makes decision making longer, Yoshida warned.
According to Yoshida, Japanese companies also show interest in Vietnam's energy sector and agriculture.
"Japanese multinational companies are changing their business strategy. As their founders are mostly at the age of 60 or 70, they are now in search of new successors. The new generations are more active and have a different mindset. They are willing to explore new fields," Yoshida said.
- FDI in Vietnam – Where is the Investment Going? (12/08/2019)
- HCM City solicits investment in infrastructure (30/07/2019)
- Vietnam - Japan Business Matching Symposium 2019 (29/07/2019)
- RoK’s rural development group to invest in smart farming in Vietnam (15/07/2019)
- FDI reaches record level in four months (08/07/2019)
- Powering 220 kV Southern Sai Gon - Urban District 8 transmission line (27/06/2019)
- EVFTA Press Release - Official Announcement from the EU (26/06/2019)
- PM calls on Korean investors to expand operations in Vietnam (12/11/2018)
- E-commerce golden pass for logistics (12/11/2018)
- Hoa Phu Industrial Park - The destination of success (12/11/2018)
- Long Thanh airport’s feasibility study approved (12/11/2018)
- Renewable energy projects spur foreign investment surge (02/11/2018)
- New innovation centre to provide grounds for Vietnam 4.0 (02/11/2018)
- National Assembly set to ratify historic trade deal (02/11/2018)
- Overseas financiers outline obstacles (02/11/2018)
- Moody’s upgrades ratings on Vietnamese banks (01/11/2018)
- Foreign investors expand networks in Vietnam (01/11/2018)
- Altus Capital funded to invest in distressed Southeast Asian companies (01/11/2018)
- More FDI to reach southern region (01/11/2018)
- Foreign fashion giants set footprint in Vietnam through M&A (31/10/2018)
- [EuroCham Webinar] Decision 13 – Final FIT for Renewable Energy in Vietnam (23/04/2020)
- THE SITUATION OF ATRACTTING FOREIGN INVESTMENT IN THE FIRST 3 MONTHS OF 2020 (19/04/2020)
- Key infrastructure projects calling for investment in HCMC (08/07/2019)
- Bac Ninh licenses 116 FDI projects in seven months (22/08/2018)
- Binh Phuoc licenses 24 projects worth $1 billion (22/08/2018)
- Hue targets $56mil in investment this year (15/08/2018)
- Hanoi seeks approval for Vingroup’s $300 million IT park (31/07/2018)
- List of Project Calling For Investment in Lam Dong Province in 2018 (31/07/2018)
- Kien Giang calls for investment in 12 resort projects (31/07/2018)
- Decree amendments open paid TV firms to foreign investment (30/07/2018)
- Vietnam: Opportunities in the Waste-to-Energy Sector (24/07/2018)
- Can Tho City seeks investment for 54 projects worth $5.4 billion (20/07/2018)
- Hoa Lac High-tech Park aims for $1 billion investment in 2018 (19/07/2018)
- Large-scale undersea tunnel to be constructed next year (19/07/2018)
- THU THUA INDUSTRIAL ZONE (15/01/2020)
- Map of industrial parks in Vietnam (23/07/2019)
- 493 Projects Invested in Nghi Son Economic Zone and Industrial Zones (09/02/2018)
- Thai Binh Strives to Attract Investment Capital of VND 5000 billion in Industrial Parks and Economic Zones (07/02/2018)
- Vinh Phuc Adds 4 New FDI Projects in Industrial Zones (07/02/2018)
- Dung Quat EZ and Quang Ngai IPs Attracted 258 Projects with a Total Investment Capital of More Than US$ 11 Billion (30/01/2018)
- Solutions to attract Investment Capital into Industrial Parks in Bac Giang Province (19/01/2018)
- Nghi Son Economic Zone and Industrial Zones Received 66 new Investment Projects (08/01/2018)