03:59 (GMT +7) - Friday 21/09/2018

Vietnam Today

Investment Promotion Conference underway in South Korea

Released at: 15:32, 16/04/2018

Investment Promotion Conference underway in South Korea

Photo: KIM

Conference in Seoul from April 16 to 20 to stimulate indirect investment flows into Vietnam.

by Lan Huong - Linh San

Minister of Finance Dinh Tien Dung is chairing the Investment Promotion Conference in Seoul, South Korea from April 16 to 20 to stimulate the flow of indirect investment capital from the country into Vietnam.

The Ministry has held successful investment promotion conferences and events in key markets such as the US and Japan over the past four years, presenting opportunities for Vietnam to continue to develop its stock market and attract indirect investment.

This year’s conference is an opportunity for State agencies and large Vietnamese enterprises to approach financial investors, banks, and insurance companies in South Korea to promote financial investment and hear the opinions and recommendations of South Korean investors regarding Vietnam’s financial and insurance markets.

Figures show that indirect investment into Vietnam has increased sharply every year in terms of both deals and value. There were 5,000 capital contributions by foreign investors to purchase shares in Vietnam last year. The value of the foreign portfolio on the stock market stood at over $32 billion in January.

The first concern to seek indirect capital from South Korea was the Asia Commercial Bank (HNX stock code: ACB) in 2008, followed by the An Phat Green Plastic and Environment JSC (AAA), which received $2.8 million from South Korea in 2009 and 2018 and also received investment of nearly $16 million from the country’s Valuesystem. Nearly 100 Vietnamese enterprises have received investment capital from the country.

Capital flows from South Korea to Vietnam have increased significantly over the last two years. At the end of March, the investment fund of the Korea Investment Management Co. (KIM) became a major shareholder in Viet Capital Securities. KIM previously became a major shareholder in the Southern Battery JSC, in June 2017, the SMC Trading Investment JSC in November 2017, and the Nam Kim Steel JSC in January 2018. It also has major holdings in VNM, HPG, GAS, and VCB, among others.

During the more than 25 years of diplomatic relations between Vietnam and South Korea, the former has become the latter’s fourth-largest trade partner and the latter is the former’s second-largest trade partner. South Korea is the largest foreign investor in Vietnam, with total registered capital as at December of $57.66 billion, accounting for 18.1 per cent of total FDI.
 
In that context, the conference is expected to spur further interest and investment from South Korea.

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