With many giant South Korean firms increasing their investment in Vietnam, more and more supporting companies from that country are likely to come to Vietnam, the CEO of HSBC South Korea, Martin Tricaud, has said.
Speaking at a press conference in Ho Chi Minh City Thursday he said South Korean businesses in Vietnam are shifting to high value-added industries, for which the Vietnamese government is supporting with its new policies.
Pham Hong Hai, CEO of HSBC Vietnam, said Korean investment in sectors like retail and entertainment is also set to grow sharply.
Tricaud said with tax concessions on offer, a growing and stable economy that averages GDP growth of 6 percent, and a young labor force, Vietnam is an attractive destination for Korean investors,.
He quoted a recent survey by the Korea International Trade Association as saying that 49 percent of interviewed businesses named Vietnam an ideal destination for investment.
South Korea has been Vietnam's largest investor with US$5.26 billion in the year-to-date, accounting for 39.5 percent of total FDI, according to the Foreign Investment Agency.
Last year too it had been the top investor with $7.3 billion.
Around 4,000 Korean companies are in Vietnam, including Samsung and LG, which have set up billion-dollar factories.