South Korean investors are being attracted to central Da Nang city due to the introduction of favorable business conditions, according to the vice chairman of the municipal people’s committee, Vo Duy Khuong.
Khuong outlined the progress made at a Da Nang-South Korea business seminar on Saturday.
“We have built up policies to attract more Foreign Direct Investment (FDI) projects and we hope that there will be more South Korean investors coming to the city in future,” he said.
“The seminar is an opportunity for businesses from the city and South Korea to discuss the advantages and disadvantages of the current investment environment. The city is prioritizing policies in tax, land price, labor training and procedures to attract further investment.”
Vietnam has attracted 3,000 projects worth a total of US$ 2.4 billion from South Korea.
Da Nang alone has secured 28 of these projects, worth $ 701 million so far.
The director of the Korean Chamber of Commerce and Industry (KCCI) in Vietnam, Kim Ho-kyun, said the seminar was an annual business forum facilitating a boost in the investment opportunities between Vietnam and South Korea.
“This year will be special for the two countries as we will celebrate the 20th anniversary of diplomatic ties,” Kim told the seminar.
“We have seen 2,800 South Korean businesses investing in Vietnam, and enterprises from the two countries have come here to study the investment environment in both countries,” he added.
He said that Da Nang city was particularly attractive to South Korean businesses due to its 12 percent growth in GDP.
The city has long tried to attract foreign investment with its policy decisions. The local authorities have offered low land rents to businesses of about $ 30-33 per sq.m per year, while foreign investors need only five days to process their business licenses.
A recent report from the city shows that Da Nang has attracted 218 FDI projects with a capital of $ 3.45 billion.