South Korea has been Vietnam's top foreign investor since 2014, with 70% of its investments going into manufacturing and processing.
As part of the country's push for industrial development, the government of Vietnam has assured investors in its electronics industry—particularly those from South Korea—that they will receive "many incentives."
The two countries signed a bilateral trade agreement in 2015, according to Sun Seok-gi, deputy chairman of the Korea Trade-Investment Promotion Agency (KOTRA). South Korea has been Vietnam's top foreign investor since 2014, with 70% of its investments going into manufacturing and processing.
This time, the government of Vietnam is placing electronic component manufacturing at the centre of its industrial development, said Vietnamese Ambassador Nguyen Vu Tu, who noted that South Korean companies "would be eligible for incentives when investing" in the electronics sector. The incentives are yet to be specified.
Aside from the incentives, South Korean companies looking to expand regionally and globally may also benefit from Vietnam's "rapid international integration" as well as its "active participation in a growing number of free trade agreements.
To promote trade and investment, Vietrade Deputy Director Bui Huy Son said the two sides need to focus on their relative advantages. In the case of Vietnam, Son said the government recently issued a support programme for parts-supplying industry development.