RoK construction firms interested in Vietnamese market

January 13, 2023 | 15:28

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With the domestic housing market entering a period of stagnation, many construction companies of the Republic of Korea (RoK) have amended their business strategies, in which many choose Vietnam as their destination, the RoK’s Newdaily newspaper reported.

RoK construction firms interested in Vietnamese market

A corner of Ho Chi Minh City (Photo: VNA)

Hanoi - With the domestic housing market entering a period of stagnation, many construction companies of the Republic of Korea (RoK) have amended their business strategies, in which many choose Vietnam as their destination, the RoK’s Newdaily newspaper reported.

In its recent article, the newspaper wrote that one of the overseas markets that Korean construction companies are paying most attention to this year is Vietnam.

With the National Master Plan to 2030 with a vision to 2045, Vietnam is striving to become an advanced country by 2045. To this end, it plans to invest in transportation, energy, information and communications technology (ICT), and infrastructure. The scale of the infrastructure industry is also expected to grow at an average annual rate of 9.8% from 5.2 billion USD last year to 11 billion USD in 2030.

Currently, construction companies that stand out in Vietnam such as GS E&C, Daewoo E&C, and Lotte E&C are strengthening their local presence by conducting large-scale development projects in Ho Chi Minh in the south and in Hanoi in the north, the newspaper wrote.

In addition to Hanoi, Daewoo E&C, the first Korean construction firm to be present in Vietnam (in 1991), is showing some signs of targeting southern Vietnam while considering investment expansion in Binh Duong province near Ho Chi Minh City.

Law revisions necessary to clarify foreign property rights

Experts continue to point out discrepancies in the laws that touch on foreign ownership of property in Vietnam, in the hopes that current amendments will take them into account.

Unpredictability stemming from housing market

Even if the threat of recession seems to be on the wane in Vietnam, the real estate sector may encounter more battles in 2023, necessitating the elimination of legal and capital barriers, including real estate corporate bonds.

By VNA

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