Deputy PM updates RoK investors on Việt Nam’s policies

Update: June, 21/2019 - 08:30
Deputy Prime Minister Vương Đình Huệ meets with Jin Hyng-chung, Hyundai Vice Chairman in charge of Hyundai Engineering & Construction (Hyundai E & C) Company. —VNA/VNS Photo
SEOUL — Deputy Prime Minister Vương Đình Huệ yesterday unveiled the advantages of investing in Việt Nam during a meeting with South Korean securities investors at the headquarters of the Korea Financial Investment Association (KOFIA) in Seoul.

The Republic of Korea is now the biggest investor and the third largest trade partner of Việt Nam, the Deputy PM said, adding that the two countries set the goal of raising two-way trade to US$100 billion by 2020.

With high economic growth, low inflation and macro-economic stability, Việt Nam will soon announce a foreign investment attraction strategy for the next decade with attention paid to high and eco-friendly technology, the environment, healthcare and connectivity with Vietnamese firms, Huệ said.

He added: “The revised Investment Law and Corporate Law will be submitted to the National Assembly later this year while the Securities Law will also be considered by the legislature during the upcoming session, with amendments to policies favourable to foreign investors.”

The Deputy PM said Việt Nam will issue policies to lure more capital into the securities market, including issuing government-guaranteed shares. The Hanoi Stock Exchange and Ho Chi Minh Stock Exchange will be merged to better facilitate transactions.

He pledged that the Vietnamese government will create favourable conditions for RoK investors, and hope that more of them will arrive in the country.

KOFIA Chairman Kwon Yong-won said roughly 7,000 RoK companies are operating in Việt Nam with total registered capital of $62.2 billion.

Last year, RoK firms poured US$4.5 billion into the Vietnamese securities market, more than doubling the figure in 2008. Several RoK financial companies are also joining Việt Nam’s infrastructure projects.

During a working session the same day with the Federation of Korean Industries (FKI), the Deputy PM asked the FKI to encourage its members to invest in Việt Nam in the fields of batteries, food processing, information technology, healthcare, environmental protection and equitisation of State-owned enterprises.

He said the Vietnamese government wants to attract more foreign investment in modern and eco-friendly technology in line with the country’s economic restructuring orientations.

FKI Chairman Chang Soo-huh said Việt Nam is an indispensable and important partner of the RoK in its New Southern Policy.

During his working trip to the RoK, Deputy PM Huệ also received leaders of several banks and financial companies, and Hyundai Việt Nam and Samsung Vietnam in Seoul.

Executives of Shinhan Financial Group and Alliex company expressed their interest in investing in intermediary and cashless payment, and peer-to-peer lending in Việt Nam.

Shinhan Chairman revealed an ambition to become the leading financial group in Việt Nam in the near future. Meanwhile, KDB and IBK banks want to set up branches in the country.

Huệ said Việt Nam plans to designate June 16 every year as Cashless Day and has assigned agencies concerned to build legal framework for the use of telecom accounts for payment and develop digital banks.

As Việt Nam is restructuring its financial and banking system, the government will not license the establishment of foreign-invested banks until the end of 2020, he said, adding that RoK banks could consider buying restructured banks such as Ocean Bank, GP Bank and CBank or a financial company.

Receiving Jin Hyng-chung, Hyundai Vice Chairman in charge of Hyundai Engineering & Construction (Hyundai E & C) Company, Huệ spoke highly of the group’s infrastructure projects in Việt Nam and suggested the company should prepare documents to participate in international bidding for the eastern section of the north–south highway.

The leader also held a working session with Vinacapital and several Korean enterprises about investment issues. — VNS