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Vietnam: Drawing ICT Investment from the Republic of Korea

Image credit: VNA

A forum to promote investment in information and communications technology (ICT) in the central city of Da Nang from the Republic of Korea (RoK) was recently held virtually. The event brought together representatives from over 200 enterprises and investors from the two countries. It introduced potential, advantages, preferential, and investment support policies of Da Nang to RoK businesses and investors, especially in ICT and high technology.

Addressing the event, the Deputy Minister of Information and Communications, Phan Tam, noted that the RoK is the largest foreign investor in Vietnam with over 9,000 projects worth over US$71.5 billion, including nearly 500 investment projects in the ICT field with the presence of the world’s leading technology corporations. According to a news report, to welcome more investments from the RoK, the Vietnamese government has been perfecting models, mechanisms, and policies to create breakthrough development for concentrated IT parks in key economic centres.

Da Nang’s municipal authority is working with the central agencies to build a digital ecosystem, giving priority to attracting foreign-invested projects in IT and high technology, towards developing the central city into a destination for global digital technology corporations, Tam said. Participants discussed the development of Vietnam’s ICT industry, investment of Korean firms in general, and Korean ICT enterprises in particular in Vietnam.

Korean investors also shared their investment experience in Da Nang. Consul General of the RoK in Da Nang, Ahn Min-Sik, stated that this is the right time to strengthen cooperation in IT to connect other sectors, expressing his hope that RoK corporations and Da Nang city will promote stronger ICT cooperation as well as in other fields for sustainable development. According to the Vice-Chairman of the municipal People’s Committee, the city considers the RoK one of its key partners and wishes to promote connectivity and investment from Korean companies in its ICT sector. Da Nang pledges to create favourable conditions for RoK investors to set up and operate effectively projects in Da Nang.

The RoK is one of the strategic markets that Da Nang is calling for investment. The RoK is one of the five countries and territories that have the highest number of projects and investment capital in Da Nang, with 233 projects worth US$378.14 million as of this November. Information technology is one of the key areas that Da Nang city is focusing on calling for Korean investors. The city has set a target of earning 2.34 billion USD from the ICT sector by 2025.

In 2014, Da Nang was the first city in Vietnam to launch an e-government system and transferred it to 16 cities and provinces in 2016. The city has maintained its leading position in terms of readiness for ICT development and application, topping the Vietnam ICT Index rankings for another year in 2020. This was the 12th consecutive year it had secured first place in the ratings of Vietnam’s 63 cities and provinces. The city posted a total score of 0.9238 in last year’s rankings; 12% higher than that of the runner-up – neighbouring Thua Thien-Hue province. It scored 1.00 in the category of IT applications.


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