Korea's Enterprises Continuously Increase Investment Capital

7:35:13 AM | 1/21/2023

Thanks to the incentive policies of Vinh Phuc province, Korean businesses continuously expand their production scale, increase total investment capital and create jobs for tens of thousands of local workers.

Workers at Jahwa Vina Co., Ltd

According to the report by Vinh Phuc Provincial People's Committee, up to now, there are 230 Korean investment projects in the province, with a total registered capital of over US$2.6 billion, accounting for 52% of projects and 35% of total FDI investment, leading the countries and territories having investment projects in the province. Korea's enterprises operate mainly in processing and manufacturing, high-tech areas, supporting industries, manufacturing components and electronic equipment, making great contributions to the budget, creating jobs and income for workers.

Typically, Jahwa Vina Co., Ltd was put into operation in Khai Quang Industrial Park in 2010 with a total initial investment of US$10 million, including a factory and more than 100 employees. After 12 years of development, the company has expanded its production scale to seven factories, increased its total investment capital to US$80 million, and created jobs and stable income for over 3,000 employees with an average salary of VND8-9 million/person/month. Mr. Nam Kwang Hoon, General Director of Jahwa Vina Co., Ltd, said that the company specializes in manufacturing electronic components supplying Samsung electronics Vietnam and LG Vietnam with main products including vibration motors, cameras for mobile phones, cars, and car drying systems. Over the past decade, Jahwa Vina has received attention from provincial departments and agencies who promptly removed difficulties and problems, especially in terms of labor, circulation, and transportation of goods. Therefore, the company has always operated stably even in the context of the COVID-19 pandemic, with an average revenue increase of 10-15% per year.

Recently, Solum Vina Co., Ltd., Ba Thien II Industrial Park, has increased capital for the 5th time, bringing the total capital to US$155 million. In 2022, despite the impact of COVID-19, the company still maintained production, grew by 10%, created more than 3,100 jobs, with an average income of VND8.5 million/person/month.

A representative of Solum Vina Co., Ltd said it chose Vinh Phuc for its dynamic and open investment environment. The company is supported and assisted by provincial leaders as well as relevant agencies which provide legal support and offer favorable conditions for the company to stabilize production. In particular, affected by the COVID-19 pandemic, the province synchronously and flexibly adopted measures to control the pandemic, prevent infection in communities, factories and industrial parks, and avoid production chain disruptions.

According to the evaluation of Vinh Phuc Provincial People's Committee, Korean projects in the province operate more and more effectively, with average revenue in 2022 increased by 14%; exports increased by 13%, payment to the State budget increased by 10%; and new jobs created for more than 2,700 employees. As a result, the total number of employees working in South Korean enterprises in the province reached over 70,000 people.

By Quynh Ngoc, Vietnam Business Forum