Vietnam market attracts Korean businesses

Monday, 16/01/2023 15:34
In the context of a stagnant housing market in the Republic of Korea, many Korean construction enterprises have changed their business strategies, including efforts to explore and expand foreign markets.
Illustrative photo (Source: NDO) 

The article of the Korean newspaper Newdaily said that Vietnam is one of the foreign markets that Korean construction companies pay the most attention to in 2023. The article states that the economic growth rate of Vietnam in 2022 reached 8.02%, among the highest in the region.

The infrastructure industry in Vietnam is expected to grow by an average of 9.8% annually. Major Korean construction companies with brands in Vietnam strengthen their presence through large-scale development projects in many localities.

According to the article, based on the experience of real estate development projects in the RoK, Korean companies such as Daewoo E&C, Lotte E&C and GS E&C are actively investing in projects to build new urban areas and smart cities in Vietnam with stable growth and high profits. Ho Chi Minh City is the area where Lotte E&C and GS E&C are implementing new urban area development projects, therefore, the competition will be fiercer with the participation of Daewoo E&C.

The Newdaily newspaper quoted some leaders of Korean construction companies as saying that Vietnam is currently an attractive construction market with high growth potential. Experts from the Korea Institute of Construction Industry said that the Vietnamese government will expand infrastructure development projects based on public-private partnership (PPP) projects, with the goal of promoting growth and diversifying the economic structure, and this is a good opportunity for Korean construction companies./.

Compiled by BTA