Republic of Korea (RoK) businesses have pumped over 3.13 billion USD ofcash into Vietnam’s economy in the first seven months of the year,accounting for one third of the country’s total foreign directinvestment (FDI), radio The Voice of Vietnam (VOV) said.

Statisticsfrom the Foreign Investment Agency (FIA) also show RoK businesses havepoured more than 1.5 billion USD into Vietnam since June 2014, makingthe RoK the largest foreign investor in the country.

Lotte-SeaLogistics, Lock& lock, Simone, Vina-Seafoods Pride, Quanon, YoungChemical Vina and Magic Vina were among the many Korean investors thatattended a recent dialogue with the managing board of the Long HauIndustrial Zone (IZ) in Long An province, discussing FDI attraction andIZ support policies.

Such dialogues with Korean investors have become increasingly more common in recent times.

RoKbusinesses consider Vietnam a key partner in Southeast Asia and a primedestination offering excellent business and investment opportunities.

Experts caution, however, it is important that the cashinflows are utilised efficiently and effectively to their greatestadvantage to achieve sustainable economic development that benefits thenational social welfare.

Vietnam should strive to carve out aniche for technology transfer to successfully carry out the localisationprocess for the greatest benefit of the national industry.

Withoutan effective localisation process, Vietnam would continue down a paththat remains overly dependent on foreign industry and technology, theysaid.

The country should aim to realise the long-termbenefits of developing a self-reliant domestic industry focused oncreating high added value products and avoiding at all coststransforming itself into a nation that just does outsourcing, easilyexploited for its cheap labour and natural resources.

Accordingto the FIA, not only RoK investors but also those from Hong Kong andJapan are increasing their investment capital into Vietnam month bymonth.-VNA