VINH PHUC ENHANCES EFFORTS TO ATTRACT SOUTH KOREAN ENTERPRISES AND INVESTORS - OTIS LAWYERS

As an attractive destination for foreign investors, particularly those from South Korea, Vinh Phuc is committed to accompanying and facilitating enterprises in implementing investment projects and conducting business operations in the province.

During a meeting on August 8 with Mr. Hong Sun, Chairman of the Korean Chamber of Commerce in Vietnam (KOCHAM), Mr. Tran Duy Dong, Chairman of the Vinh Phuc Provincial People's Committee, affirmed that in recent years, the relationship between Vietnam and South Korea has been strong across various fields, including politics, economics, and culture. In Vinh Phuc, South Korea ranks first in both the number of projects and registered investment capital. The projects are primarily focused on the province's priority areas, such as electronics manufacturing, automotive parts, textiles, electronics production, and semiconductors, contributing significantly to the province's socio-economic development.

Introducing the province's socio-economic situation, potential, and strengths, Mr. Tran Duy Dong noted that Vinh Phuc is located in the Northern Key Economic Region, the Red River Delta, and the Capital Region, with geographical and natural advantages compared to many other provinces and cities nationwide. In recent years, Vinh Phuc has been one of the provinces and cities contributing the most to the central government’s budget.

According to the approved master plan by the Prime Minister, by 2030, Vinh Phuc will develop 27 industrial parks, with nine already operational. The province has vigorously and effectively implemented administrative reform and business environment improvements.

With an investment attraction strategy prioritizing high-tech industries, mechanical engineering, electrical equipment, electronics, semiconductors, automobiles, and motorcycles, Vinh Phuc has focused on resolving policy and mechanism issues, developing high-quality human resources, and creating favorable conditions for investors, particularly those from South Korea, to explore and implement investment projects in the province.

Notably, Mr. Tran Duy Dong emphasized that the province is continuing to simplify administrative procedures, granting authority to the Industrial Park Management Board to handle administrative procedures under a one-stop-shop model. Vinh Phuc’s general orientation is to support investment projects in industrial parks and provide essential services such as telecommunications, clean water supply, wastewater treatment, and infrastructure development.

The provincial leaders noted that Vinh Phuc has concentrated on exploiting its potential and strengths, promoting industrial development to generate growth and accelerate economic restructuring, increasing budget revenue, and investing in urban and rural infrastructure and service sector development. Recognizing the need for planning to ensure sustainable development, Vinh Phuc has developed strategic urban development plans as essential tools for investment promotion. The province has planned 20 industrial parks covering nearly 6,000 hectares and 32 industrial clusters covering over 600 hectares. Vinh Phuc is also striving to improve its investment and business environment and enhance its provincial competitiveness to attract investment.

Vinh Phuc's business environment is highly regarded for its transparency, integrity, and fairness. A key highlight of the province is its close collaboration with businesses, promptly resolving issues and challenges that arise during investment. The province also creates the best conditions for investors to explore and invest in Vinh Phuc.

Despite economic difficulties in recent years, the province aims to complete its urban infrastructure framework by 2030, becoming a central hub for industrial and service development in Vietnam and striving to become a centrally governed city. Vinh Phuc's goal is not only to create a favorable business environment but also to offer a high-quality living environment. The province aspires to attract successful and high-profit enterprises to invest and operate there and to become a place where wealthy and talented individuals choose to live and work. By 2050, Vinh Phuc aims to be a centrally governed city with comprehensive development in all aspects—economic, social, and environmental—with a high and happy standard of living for its residents. Achieving these goals requires maximizing the province's potential and mobilizing resources for development, especially by attracting high-quality, eco-friendly investments with significant socio-economic impact.

Four Commitments to Support Foreign Investors

During the meeting, Mr. Hong Sun, Chairman of KOCHAM, and representatives of South Korean enterprises in Vinh Phuc congratulated and expressed confidence that, in his new position, Chairman Tran Duy Dong would make significant contributions to elevating Vinh Phuc to new heights. Mr. Hong Sun hoped for more meetings and investment promotion activities with the province's leaders. Through this visit, KOCHAM will continue to connect and act as a bridge to promote investment cooperation in Vinh Phuc in the future.

Mr. Hong Sun also expressed particular interest in electricity supply issues and hoped that Vinh Phuc would outline investment attraction strategies to introduce South Korean investors, making it easier for them to explore long-term investment opportunities in the province.

Responding to KOCHAM’s representatives, Chairman Tran Duy Dong expressed his desire for KOCHAM to continue introducing South Korean enterprises to explore and invest in projects in Vinh Phuc. He also reaffirmed that, in addition to promoting large investment projects, the province will continue to support existing investors, enhancing its appeal to new investors.

Regarding the proposal to ensure a stable electricity supply for production, Chairman Tran Duy Dong committed that Vinh Phuc would continue to study policies, and plans, and develop appropriate electricity supply methods to ensure effective industrial production. He also outlined four commitments to attract investment:

1. Vinh Phuc's departments and agencies will create the best conditions for investors and enterprises.

2. Vinh Phuc has coordinated with the Vietnam Electricity Group (EVN) to ensure sufficient electricity for production and business activities.

3. Vinh Phuc will invest in developing high-quality human resources to meet the needs of businesses.

4. Vinh Phuc will not only create favorable conditions for new investors but will also continue to care for existing investors and enterprises operating in the province.

"Existing investors and businesses in Vinh Phuc are the most convincing promoters of the province. We believe that in addition to attracting new investments, we must care for and support existing investors. When they are well cared for and operate in a favorable environment, they will be the most persuasive promoters of Vinh Phuc's investment environment," emphasized Chairman Tran Duy Dong.

Continuing to Support South Korean "Eagles" in Investing

Previously, Chairman Tran Duy Dong and representatives of some provincial departments and agencies met with the leadership of Signetics Corporation (South Korea). This company, a subsidiary of the Youngpoong Group, operates in the semiconductor industry with over 1,000 employees and production branches in the United States and the Netherlands. Vietnam is their next destination for cooperation and investment expansion.

The company is exploring investment opportunities in Vinh Phuc with an estimated total investment of around USD 100 million. The proposed factory site is in Bá Thiện Industrial Park, covering a total area of 5 hectares, with the project expected to become operational by the end of 2025.

During the meeting, Mr. Song Young Hee, General Director of Signetics Corporation, highly appreciated Vinh Phuc's investment environment and policies and chose the province as the location for the company's future investment. After surveying the province’s investment environment, the company’s leadership found Ba Thien Industrial Park to be a suitable location for their production scale and business strategy. General Director Song Young Hee expressed his hope that the province would continue to support and facilitate the company’s project implementation.

Chairman Tran Duy Dong affirmed that South Korea is a strategic partner of Vietnam in trade and investment development. South Korean enterprises have invested heavily in the province. Upon receiving the investment proposal from Signetics Corporation, the provincial People's Committee directed the Industrial Park Management Board to facilitate the company in obtaining the Investment Registration Certificate and in preparing the necessary steps for the project to become operational soon. He also encouraged the company to consider expanding its investment scale in Vinh Phuc, while assuring that the province would continue to support and facilitate the company in implementing its investment and production projects in the future.

For any questions or comments, please contact:
OTIS AND PARTNERS LAW FIRM
Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi
Email: [email protected]
Hotline: 0987748111