The relationship between Vietnam and the Republic of Korea (RoK) has got more and more flourishing. In such favorable condition, many RoK enterprises have made investment in Vietnam and Binh Duong has always been selected by RoK enterprises.
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Provincial People’s Committee Chairman Le Thanh Cung (first line’s third left) visiting KyungBang Vietnam Co.Ltd.’s fibre plant in Bau Bang Industrial Park
Investment capital on sharp rise
In early 1990s, province-based Rok enterprises mainly got involved in the fields of garment-textile, footwear…There was a breakthrough in 2008 when Rok’s Kumho Tires Vietnam Co.Ltd. under Kumho Tires Corporation, one of the world’s top providers of tires put its US$200mln-factory into operation in Ben Cat town-based My Phuoc 3 Industrial Park.
Following the birth of Kumho Tires Vietnam Co.Ltd., many other RoK enterprises in the fields of electronic equipment, auxiliary products, car equipment…, including Yongho Vina Co.Ltd., Staz Vietnam Co.Ltd., Daeha Cable Vietnam Co.Ltd., Since Win Vina Co.Ltd…, have made investment in Binh Duong.
The province has recently absorbed great projects from RoK investors in the fields of trade-services and real estate. By the end of 2013, Rok’s leading retail group Lotte put its trade center into operation in Thuan An town’s Lai Thieu ward, the fifth of its kind in Vietnam. The three-storey building worth nearly USD30mln was built on an area of 21,300 square metres. It is not only merely serving as a trade centre but also includes a cinema, an amusement park, shops and restaurants.
Regarding real estate, the five-hectare Charm Plaza project invested by Rok’s Charm Engineering Co.Ltd. has also been implemented in Di An town with a total investment capital of nearly US$200mln. Till now, apartments under the phase 1 of the projects have been handed over to clients…
The whole province has so far attracted 487 RoK-funded projects capitalized at US$1.9bln, ranking third in investment capital among 39 countries and territories investing in Binh Duong.
Working effectively
According to many Rok enterprises, Binh Duong has a favorable investment climate with well-built infrastructure, abundant workforce, good traffic system…This is a very important condition for foreign enterprises, including RoK ones to invest in the province. Also upon this, province-based RoK enterprises have raised their investment capital for production expansion.
One of them is Suntech Vina Co.Ltd. which has just boosted its capital for production expansion to satisfy clients’ demand. The company specializes in manufacturing rear-view mirrors for autos and rear-view mirror heaters for export was inaugurated last year with the annual capacity of around 30mln products.
BK Vina Co.Ltd. has also injected additional US$4.7mln to increase its capacity. With the additional sum, the total investment capital of the company is now US$15.9mln.
Noticeably, KyungBang Vietnam Co.Ltd. under Rok’s KyungBang Group has poured the largest additional capital amount into production. In May 2013, the company put its fibre plant into operation with investment capital of US$40mln for the first phase. The company also raised its capital by US$54.2mln for production expansion only after one-year operation.
According to Lee Kap Soo, General Director of the company, Vietnam in general and Binh Duong in particular has a favorable and effective investment climate. Hence, making investment in Binh Duong is the right and timely decision of KyungBang Group.
Le Thanh Cung, Chairman of provincial People’s Committee has spoke highly of province-based RoK enterprises’ ability. To him, fields invested by them are in line with the province’s orientation calling for investment, thereby contributing to promoting the local socio-economic development. The local authorities at all levels will always create favorable conditions for foreign investors, including Rok ones to take fruits in production and business…
Reported by Trong Minh-Translated by K.T
