Central city calls for ICT investment from South Korea

November 29, 2021 - 09:00

South Korea will be one of the most important potential strategic partners in the central city’s investment promotion and digital transforming plan 2025-30, specially in information and communication technology (ICT).


A forum on ICT investment promotion from South Korea introduces investment opportunities in Đà Nẵng. — Photo courtesy of Đà Nẵng Investment Promotion Centre

ĐÀ NẴNG — South Korea will be one of the most important potential strategic partners in Đà Nẵng's investment promotion and digital transformation plan for 2025-30, particularly in information and communication technology (ICT).

Deputy Chairman of the city’s People’s Committee Trần Phước Sơn urged for more investment from South Korea in Đà Nẵng to boost the ‘smart city, hi-tech innovation hub’ master plan, during the South Korea ICT Investment promotion to Đà Nẵng forum on Tuesday.

Sơn said South Korea had been listed as a top five-investor in Đà Nẵng, with 233 projects worth US$378 million, hosting 214 direct and chartered flights (before the COVID-19 pandemic) and carrying 1.5 million tourists to the central city (50 per cent international visitors) per week.

Two engineers inspect a production line at the surface-mount technology factory in Đà Nẵng IT Park. — VNS Photo Quang Huy 

He said the city’s ICT, which earned US$1.3 billion in 2020, aimed to increase revenue to $2.34 billion, contributing 15 per cent of city’s Gross Regional Domestic Product in 2030.

The deputy chairman said Đà Nẵng had made ICT infrastructure available to Korean investors flocking in after COVID-19 was under control.

The South Korea consulate general in Đà Nẵng Ahn Min Sik said two-way trade between Việt Nam and Korea had increased from $500 million in 1992 to $69 billion in 2020.

The two sides have eyed expansion in IT and the fourth Industrial Revolution in celebration of the 30th anniversary of diplomatic ties between Việt Nam and Korea next year, he said.

Ahn Min Sik said Đà Nẵng had been developing IT infrastructure and was an increasing investment attraction of FDI, including from Korea.

“LG Electronics set up its research and development centre – the second in Việt Nam – in Đà Nẵng, promising further co-operation in ICT between Korea and Đà Nẵng,” he said.

An urban zone of Đà Nẵng Information Technology Park offers living conditions for investors and their families. — Photo courtesy of Quang Huy 

“Korea helped the city build the Việt Nam-Korea Friendship Information Technology College with Official Development Aid funding of $10 million from South Korea from 2007, and upgraded it to a university specialising in training IT human resources for 2020-25,” he added.

He also said Korea had helped support smart city projects in Đà Nẵng, and Quảng Nam and Thừa Thiên-Huế provinces, as well as climate change projects.

Kim Jinmo, deputy director of the South Korea Trade and Investment Agency Đà Nẵng Office, said that investment flow from Korea to Việt Nam would focus on manufacturing and production, real estate, electronics and ICT.

He said electronics investors (including two key investors Samsung and LG) accounted for 23 per cent of funds from South Korea, with annual an 3.7 per cent growth.

Lee Byoung Moog, deputy director of Korean IT co-operation centre, said investment between Việt Nam and Korea had been boosted in the last five years in line with completed free trade agreements, and IT was seen as having the most growth.

He said Samsung with 200 partners, and LG with 100 partners, had helped promote technological solutions, financial services and Fintech.

Lee said other IT investors including Naver AI centre, SK Group, OK Xe and Baemin had also been working in Việt Nam.

He said Đà Nẵng planned to build an international financial centre, and the city should eye FinTech development for future investment flow.

Deputy Director of Đà Nẵng Information and Communications Department Lê Sơn Phong said the city had designed an IT and Innovation Zone including an IT Park, a Hi-tech Park and a Creative Space for potential investors.

Phong said the IT Park, which was built on 131 hectares costing $47 million, was ready for working and living in a combined urban zone in the northwest region.

An exhibition of a 'smart city' project in Đà Nẵng. The central city plans to become a smart city by 2030. — VNS Photo Công Thành 

Last year, representatives of 30 Korean firms paid a field visit to seek investment opportunities at a new operated surface-mount technology factory in Đà Nẵng Hi-tech Park.

Investors would get special preferential mechanisms from the park with free land rental from five to 50 years depending on investment scale, and preferential corporate income tax for 15 years, as well as exemption from import tax on production material and information technology service as well as export tax.

Đà Nẵng IT park – the third national IT centralised zone – expects to create revenue of $1.5 billion each year, with 25,000 jobs and a satellite city of 100,000 people.

A report from the Ministry of Information and Communications has included Đà Nẵng in the top 10 provinces and cities with ICT revenue of more than $1 billion in Việt Nam.

In 2020, the Consulate General of the Republic of Korea was opened in Đà Nẵng, boosting investment and trade between Korea and central Việt Nam.

The South Korea Trade and Investment Agency also opened its office in Đà Nẵng to promote investment and connection among Korean investors.

The leading Korean hospitality corporation, Shilla Hotels & Resorts, debuted with the Shilla Monogram Quảng Nam-Đà Nẵng resort on the beach of Quảng Nam and Đà Nẵng City, marking its first footprint outside of South Korea, with total investment of $50 million. — VNS