FDI in South Korea: Experiences and policy recommendations for Viet Nam

Vietnam's infrastructure is still limited. FDI attraction is difficult because of diversity, connectivity between regions and poor quality infrastructure. Although investment and value in transport routes such as roads, waterways and airports are increasing, there is still a lack of linkage between these modes of transport, especially the railway system. Vietnam had the most advanced railway infrastructure among any country 100 years ago, but now it is backward compared to other countries.

FDI in South Korea: Experiences and policy recommendations

for VietNam

CHAPTER 1 THEORETICAL FRAMEWORK OF FOREIGN DIRECT INVESTMENT

1.1 Concepts and characteristics of FDI

1.1.1 Concepts of FDI

FDI is an abbreviation of the phrase Foreign Direct Investment Although there are many different definitions of FDI, they generally refer to an economic relationship with foreign elements, which is a form of long-term investment by individuals or organizations in other countries by setting up factories and business establishments The purpose of this activity is to achieve long-term benefits and take control of this business

According to the International Monetary Fund (IMF), FDI is an investment made

to obtain lasting benefits in an enterprise operating in the territory of an economy other than that of the host country The purpose of the investor is to gain real management of the business

According to the Organization for Economic Co-operation and Development (OECD), FDI is carried out to establish long-term economic relationships with an enterprise, especially those investments that provide the ability to influence the management of the said business by: (i) Establishment or expansion of an enterprise or

a branch under the full management of the investor; (ii) Acquiring the entire existing enterprise; (iii) Entering into a new business; and (iv) long-term credit (longer than 5 years)

According to UNCTAD, FDI is a long-term investment activity aimed at obtaining long-term benefits and control by an entity (foreign direct investor or parent enterprise) of a country in a business (foreign branch) in another country The purpose

of direct investors is to have a lot of influence in the management of businesses located

in that economy This definition does not tell us exactly what an investment is

According to the WTO: “Foreign direct investment occurs when an investor from one country (the host country) acquires an asset in another country (the host country)

with the right to manage that asset” This concept emphasizes that FDI is an asset The regulatory aspect is what distinguishes FDI from other financial instruments In this case, the investor is often referred to as the “parent company” and the assets are referred

to as the “subsidiary” or “branch of the company”

Although appearing several decades later than other external economic activities, FDI has quickly established its position in international relations Gradually becoming

an inevitable trend of international economic integration, an indispensable need of every country in the world

In essence, FDI is a meeting of the needs of two parties, one is the investor and the other is the country receiving the investment In it, specifically:

- There are established rights and obligations of investors to the place of investment

- For invested capital, establish ownership and management rights

- Enclosed with the right to transfer technology and techniques of the state

to invest with the host country

- Related to the market expansion of multinational enterprises and organizations

- Always associated with the development of international financial markets and international trade

1.1.2 Characteristics of FDI

FDI is mainly private investment with the primary purpose of seeking profit

According to the classification of foreign investment in many documents and according

to the provisions of many countries' laws, FDI is a private investment However, the laws of some countries (for example, Vietnam) stipulate that in special cases FDI may involve state capital contribution Whether the subject is private or state, it is necessary

to affirm that FDI has the first priority purpose of profit Investment recipient countries, especially developing countries, must pay special attention to this when conducting FDI

attraction Countries that receive FDI need to build for themselves a strong enough legal corridor and reasonable FDI attraction policies to direct FDI to serve their country's socio-economic development goals, avoiding FDI status only serves the purpose of seeking profits of investors

Foreign investors must contribute a minimum percentage of legal capital or charter capital depending on the laws of each country in order to gain control or participate in controlling the investment enterprise Countries often have different

regulations on this issue The law of the US stipulates that the rate is 10%, France and the UK are 20%, Vietnam according to the Law on Investment 2014 does not distinguish between direct investment and indirect investment, but collectively referred to as business investment According to the regulations of the OECD (1996), this ratio is 10%

of the common shares or voting rights of the enterprise - a recognized level that allows foreign investors to truly participate in the management of the enterprise The capital contribution ratio of the investors will determine the rights and obligations of each party, and profits and risks are also divided based on this ratio

Investors make their own decisions on investment, production and business decisions and are solely responsible for losses and profits This form is feasible and

highly economic, without political constraints The investor's income depends on the business results of the business in which they invest capital, it is business income, not interest

FDI is often accompanied by technology transfer for investment-receiving

countries by bringing machinery, equipment, patents, inventions, technical know-how, managers, etc into the investment-receiving country for project implementation

1.2 Types of FDI

1.2.1 Establish a business with 100% capital from foreign investors

This is the most common type of FDI, foreign investors own all capital and manage businesses in Vietnam For this type, investors will have to invest a large

amount of money to buy land, build factories and carry out other business activities However, this type will bring many benefits to foreign investors, including independent control over business management, minimizing legal risks, ensuring intellectual property rights and executing business strategies flexibly

Foreign investors own 100% in 100% foreign-invested companies, although they are subject to the laws of the host country (investment country) The enterprise must be invested, established and subject to the state management of the host country as an economic legal entity Foreign investors must self-manage and take full responsibility for business performance In terms of legal form, there are several types of enterprises such as limited liability enterprises, private enterprises, joint stock companies, etc., according to the provisions of the Enterprise Law 2005

1.2.2 Establishing a joint venture between domestic and foreign investors

This is a form of cooperation between domestic and foreign investors, in which foreign investors and domestic partners contribute capital and experience to establish businesses

Establishing a joint venture brings many benefits to partners For domestic investors, they can learn from experience and access new technologies from foreign partners, and at the same time, take advantage of the global market For foreign investors, they can participate in the Vietnamese market through local partners, minimizing risks and costs when investing in a new market Moreover, joint venture enterprises can save investment and management costs through sharing resources and experience among partners

However, the establishment of a joint venture enterprise also poses many challenges and difficulties Partners in a joint venture often have different business languages and cultures, which can make it difficult to unify business strategy and business management Moreover, the difference in size and technology between partners can also cause problems in business management and development In addition, when establishing a joint venture, partners also face risks in capital, business and business management Therefore, it is necessary to have a detailed plan and take prudent

steps in selecting partners, allocating resources and implementing effective corporate management

1.2.3 Investment in the form of Business Cooperation Contract (BCC)

Investment in the form of Business Cooperation Contract (BCC) is a popular form of FDI that foreign enterprises use to enter the Vietnamese market BCC is a contract between business partners, each contributing capital, assets and experience to carry out a joint project

The advantage of the BCC form is that the foreign investor is not liable for the partner business in Vietnam and can retain all profits from business activities Besides, this business cooperation also helps partners make good use of each other's experience, technology and management processes However, the BCC form also has some limitations First, the management and implementation of the project must be based on agreement between the parties and can lead to conflicts when the parties do not agree

on important decisions.Second, the division of profits between parties can be difficult when it is not possible to assess the contribution of each party Finally, the sharing of technology and management among partners can also cause some controversy

1.2.4 Form of contract BOT, BTO, BT

Forms of FDI investment in the form of BOT (Build-Operate-Transfer), BTO (Build-Transfer-Operate) and BT (Build-Transfer) contracts are relatively popular investment forms in Vietnam In particular, BOT is the most popular form of investment because of its flexibility and the ability to quickly recognize profits

Accordingly, investment in the form of BOT/BTO/BT requires foreign investors

to contribute capital to build an infrastructure (such as roads, bridges, ports, airports ) and transport, operate or use it for business for a certain period of time After the specified time expires, the property is transferred to the Vietnamese government or investor according to the agreement

The advantage of the BOT/BTO/BT form of investment is to help foreign businesses reduce financial and legal risks, as well as create conditions for business partners to participate in large projects without the need for too much investment

Moreover, this form of investment also helps to improve the quality and efficiency of the infrastructure, making a positive contribution to the economic and social development of the country

However, the form of BOT/BTO/BT investment also has some limitations Firstly, pricing and risk sharing among investors is not simple, leading to possible legal and financial disputes Second, because this is a long-term investment, foreign investors need to ensure the feasibility and sustainability of the project Finally, BOT/BTO/BT projects also require a very large initial investment, especially in areas of underdeveloped infrastructure, leading to high financial risks

1.2.5 Investment in buying shares or mergers and acquisitions (M&A)

Investment in share purchase or merger and acquisition (M&A) is a form of investment by foreign investors in a domestic enterprise by purchasing part or all of the shares of that enterprise

The advantage of this form is that it can increase the speed of business expansion Through M&A, businesses will increase their business scale, own more new products and services, and expand potential markets Compared to setting up a new business, M&A helps to reduce initial investment time and costs M&A helps investors access new markets without having to start from scratch, and at the same time owns a large number of potential customers

However, this form of investment also has disadvantages such as investors may face risks during the implementation process The M&A process may face many difficulties, such as management differences between enterprises, difficulties in valuing businesses, and differences in corporate culture Investors must face legalization risks The M&A must comply with the laws on foreign investment and the laws of the country

in which the business operates Failure to comply with legal regulations may lead to legal risks

In the process of M&A, investors need to spend a large amount of money to buy back shares of the business, and also have to spend money to learn and evaluate the

business

1.3 Impacts of FDI on economy

1.3.1 Positive impact

1.3.1.1 With the host country

If properly managed and exploited, FDI can bring many benefits to the host country

- Job Creation: FDI has the potential to create many new jobs and

contribute significantly to economic growth and to reducing unemployment in the host country For example, FDI by Korean enterprises in Vietnam has created thousands of jobs for domestic workers, contributing to Vietnam's economic growth over the years

- Improve production quality and efficiency: Foreign direct investment

enterprises often bring with them advanced technology, production processes and effective management experience, helping to improve the quality and efficiency of their production domestic enterprises For example, the FDI of Japanese enterprises into the automobile industry in Vietnam has helped to improve the quality and reduce the cost of automobile products in Vietnam

- Export promotion: FDI often accompanies the construction of factories

and infrastructure for production, creating favorable conditions for domestic enterprises to export products, contributing to export growth and improving the country's trade For example, FDI by US firms into the textile industry in Bangladesh has helped strengthen the industry's competitiveness in the international market Bangladesh has become one

of the world's largest textile exporters, thanks to the investment of foreign enterprises such as Walmart and Gap Before the investment of these businesses, Bangladesh's textile industry was focused on producing cheap, poor quality clothes and competed with other countries such as China and India However, with the investment of American businesses, Bangladesh has improved its infrastructure and product quality, helping

the country compete in the world market with good quality textile products and a more competitive price

- Investment in new fields: FDI often invests in new, less developed fields

in the host country, helping to expand and diversify the economic base, creating new development opportunities for the country For example, the investment of Japanese enterprises in the high-tech industry in Vietnam has helped the country develop rapidly in this field Companies such as Panasonic, Canon and Toshiba have invested in projects to manufacture mobile phones, tablets and other electronic devices in Vietnam, helping the country to rapidly develop in the field high technology and create thousands of new jobs for people

- Enhancing competitiveness: The presence of foreign enterprises compete

with domestic enterprises, helping to promote innovation and product improvement, enhancing the country's competitiveness in the international market For example, the FDI of Korean enterprises into the automobile industry in Vietnam has promoted competition between domestic and foreign enterprises Investments by Hyundai, Kia and other auto companies have helped Vietnam develop its auto industry

1.3.2 Negative impact

1.3.2.1 With the host country

- Impact on the state budget: When foreign enterprises invest in a country, they

often enjoy tax incentives and other government policies, leading to a decrease

in state budget revenue This can affect the government's ability to deliver public

services and other development programs

- Economic Monopoly: FDI can lead to industrial concentration in foreign firms,

leading to economic monopolies and unfair domestic competition This can affect the development of domestic enterprises and create barriers to the development of domestic enterprises

- Change in industry structure: When foreign enterprises invest in a country, often

focusing on industries with the most growth potential, leading to a change in the structure of domestic industry This can affect the traditional industries of the host country and cause social impacts such as unemployment and industrial innovation

- Impact on the environment: Many FDI enterprises focus on industrial

production, especially heavy industries, which may affect the investment domestic environment The increase in emissions and wastes from the production plants of foreign enterprises may cause negative impacts on the environment and the health of the people in the investing country The lack of control and supervision can also lead to FDI enterprises not complying with the environmental regulations and ordinances of the host country

Some investing countries also use lower environmental standards in their production and consumption processes This can lead to an increase in emissions

and polluting emissions in the host country Furthermore, competition between FDI enterprises and domestic enterprises can also lead to domestic enterprises using lower environmental standards to reduce production costs, pollute the environment and cause environmental damage negative impact on the health of the people in the country In addition, FDI enterprises often focus on energy-intensive industries, especially steel, aluminum, chemical and electronic manufacturing industries Production in these industries can consume large amounts of energy, leading to increased energy use and carbon emissions, environmental impacts and climate change For developing countries, having to accept the negative effects of FDI on the environment can be a big challenge in economic development and maintaining a healthy living environment for people Investing in clean manufacturing industries and using environmentally friendly technologies can help reduce the negative impact of FDI on the environment However, this requires cooperation between countries and businesses to ensure that products are manufactured according to high environmental standards and using environmentally friendly technologies

1.4 Factors affecting FDI attraction

1.4.1 Subjective factors

- The economic situation of the country: One of the factors promoting FDI

attraction is the stability of the macroeconomic environment Vietnam is considered to have a stable macro-economy The exchange rate governing the foreign exchange market and the exchange rate shall be regulated by the State Bank The General Statistics Office said that Vietnam's GDP has grown significantly in recent years, especially in 2018, when it grew at a rate of 7.08% Vietnam's economy is considered one of the most stable and is making significant development steps, which is reflected in the GDP growth rate (continuously exceeding 6% from 2015 to 2022) From the end of 2019 until now, the impact of the COVID-19 pandemic has caused the global economy to become depressed, but Vietnam's economy has still achieved positive results, with an average annual growth rate of 2.91% in 2020

- Political and social environment: Investors are very interested in the overall

economic strategy to attract foreign investment The political and social situation

in Vietnam is considered stable and favorable for international investment The Doi Moi process has achieved many economic, political, social and diplomatic successes, proving that Vietnam has the ability to overcome obstacles and establish itself as an important partner in economic growth region both politically and economically However, Vietnam is still modernizing and

integrating into the global and regional economy

- Geographical location, technical infrastructure: Geographical location and

technical infrastructure are considered as factors affecting the attraction of FDI into a country The geographical position of Vietnam is considered very favorable because it trades with the developing countries in Southeast Asia and China - the country with the second largest economy in the world - is one of the largest economies in the world important place for freight Vietnam has rich and diverse natural resources, especially minerals and deltas, which encourage FDI enterprises to invest in Vietnam

Infrastructure is one of the factors that foreign businesses always consider before deciding to invest in a country FDI enterprises always try to reduce the cost of production and transportation of goods to increase profits by using the infrastructure, resources and resources of the host country Having developed infrastructure is considered an advantage for international investors However, Vietnam's infrastructure is still limited FDI attraction is difficult because of diversity, connectivity between regions and poor quality infrastructure Although investment and value in transport routes such as roads, waterways and airports are increasing, there is still a lack of linkage between these modes of transport, especially the railway system Vietnam had the most advanced railway infrastructure among any country 100 years ago, but now it is backward compared to other countries

- Management level and capacity of employees: Management factor and staff

capacity is an important factor affecting FDI attraction Effective management and staff expertise are critical to helping investors achieve their business goals

If a country has a good management system and highly qualified staff, it will be easier for foreign businesses to make investment decisions in it

Investors will be interested in the management of the company and how problems arise They want to make sure that their company is run efficiently and without unnecessary risk Employee competence is also an important factor when foreign enterprises evaluate their ability to train and develop their staff in the future

This can be ensured by increasing staff training and capacity building The introduction of policies to attract talents and provide professional training for employees in the fields of production, business, and technology is also an effective means to attract foreign investors If a country has a highly capable workforce, investors will appreciate it and make investment decisions easier in

it

1.4.2 Objective factors

- Political and Economic Stability: Investors look for a stable political and

economic environment with legal and regulatory certainty, property rights

protection, and a level playing field for competition Countries with political and economic instability often face challenges in attracting foreign investment For example, the political and economic instability in Venezuela has caused a decline

in FDI inflows, with investors avoiding the country due to the high risk of nationalization, confiscation, and regulatory uncertainty

- Infrastructure: foreign investors prefer countries with developed infrastructure,

including transportation, energy, and communication systems The availability and quality of infrastructure can reduce transaction costs, increase efficiency, and facilitate business operations For example, China's investment in its Belt and Road Initiative (BRI) aims to improve infrastructure in participating countries, thus attracting FDI by offering better transport and communication links

- Human Capital: Investors require a skilled workforce to operate their businesses,

and therefore countries with well-educated and trained workforces are more attractive to foreign investors Countries with quality education systems and vocational training programs can provide a competitive advantage for foreign investors seeking to employ highly skilled workers For example, the skilled workforce in India's IT sector has attracted many foreign investors, with companies such as Google and Microsoft setting up development centers in the country

- Natural Resources: Foreign investors are attracted to countries with abundant

natural resources such as oil, gas, minerals, or agricultural products A country with rich natural resources can provide an advantage for investors who can access these resources at a lower cost For example, Norway's natural resources, including oil, gas, and hydropower, have attracted significant FDI, making it one

of the world's top recipients of foreign investment

- Market Size: Foreign investors look for countries with large and growing

consumer markets, as it provides a ready-made customer base for their products and services A large domestic market can also encourage foreign investors to set up manufacturing facilities in the country For example, the United States,

with its large consumer market, has attracted significant FDI, with many foreign investors setting up production facilities in the country to serve the local market

CHAPTER 2 Thực tra ̣ng thu hút FDI của Hàn Quốc giai đoa ̣n 2016 - 2022 -

Situation of Korea's FDI attraction in the period 2016 - 2022

2.1 Chính sách thu hút FDI của Hàn Quốc giai đoa ̣n 2016 - 2022 (THỨC) - Korea's

2.1.1 Điều kiê ̣n để đầu tư FDI vào Hàn Quốc - Conditions to conduct FDI in South Korea

+ Foreign investment in businesses such as the central bank, media and postal services is strictly

+ Foreign investment is acceptable within a permitted range if the sales of the target company concerning foreign-investment restricted businesses (eg, businesses related to nuclear generation newspaper publication, radio broadcasting) do not exceed 1 per cent of the total sales

+ The Minister of Trade, Industry and Energy may, in consultation with the Foreign Investment Committee, may limit foreign investments on grounds that

it presents a national security risk

+ Also, foreign investment in a defense industry company is allowed after clearance from the

+ Minister of Trade, Industry and Energy, which in turn must consult with the Minister of Defense

2.1.2 Chính sách thu hút FDI của Hàn Quốc (CHỈNH LẠI TOÀN BỘ)

Mô hình chính sách:

- Kết hợp khuyến khích thu hút đầu tư nước ngoài và hỗ trợ đầu tư ra nước ngoài Các biện pháp thực hiện:

1 Hỗ trợ các dịch vụ một cửa và ưu đãi thuế quan

Tất cả các quy định và pháp luật hiện hành liên quan đến đầu tư trực tiếp nước ngoài được sắp xếp hợp lý hóa và sáp nhập vào một khuôn khổ pháp lý riêng được gọi là Đạo luật xúc tiến đầu tư nước ngoài (FIPA), có hiệu lực từ tháng 11 năm 1998

Đạo luật này cho phép các nhà đầu tư nước ngoài tận dụng dịch vụ một cửa và đãi ngộ đồng nhất Đạo luật này nhằm tạo môi trường đầu tư nước ngoài hấp dẫn hơn với các tiện ích như: các ưu đãi về thuế, tiền thuê nhà máy rẻ hơn, quy trình- thủ tục hành chính đơn giản, các dịch vụ hỗ trợ, cũng như đào tạo nhân lực…

2 Tăng thời gian miễn thuế thu nhập doanh nghiệp

Đối với các nhà đầu tư công nghệ cao, thời gian miễn thuế thu nhập doanh nghiệp sẽ được tăng từ 8 năm lên 10 năm

Chính quyền địa phương cũng được phép tự quy định mức ưu đãi giảm/miễn thuế từ 8 đến 15 năm và được phép lập và điều hành các Khu công nghiệp đầu tư nước ngoài để thu hút đầu tư FDI Các thủ tục hành chính rườm rà, trước kia từng làm nản lòng các nhà đầu tư nước ngoài, nay được xóa bỏ, hoặc đơn giản hóa

Rất nhiều động lực khác, như miễn hoặc giảm thuế được đưa ra để thúc đẩy đầu tư trực tiếp nước ngoài Ví dụ như: thuế thu nhập và thuế doanh nghiệp được miễn hay giảm với các ngành công nghệ cao trong thời hạn là 7 năm Bất động sản thuộc

sở hữu Nhà nước có thể cho các hãng được đầu tư từ nước ngoài lên đến 50 năm với giá cả thuận lợi, và đôi khi miễn phí trong các trường hợp cụ thể Các khu vực đầu tư

tự do cũng được hình thành để phù hợp với đầu tư trực tiếp nước ngoài quy mô lớn

3 Hủy bỏ từng bước các lệnh cấm nhập khẩu, giảm con số các hạng mục chịu thuế quan

Nhà nước tiếp tục hủy bỏ từng bước các lệnh cấm nhập khẩu, giảm con số các hạng mục chịu thuế quan

● Ngày 15/2/1995, đạo luật mang tính bước ngoặt được ban hành khi Hàn Quốc cho phép các nhà đầu tư nước ngoài chỉ cần báo cáo hoạt động đầu tư cho cơ quan quản lý địa phương, không cần phải nộp đơn xin phê duyệt từ Chính phủ như trước

Sau khủng hoảng kinh tế năm 1997, Hàn Quốc ban hành đạo luật thúc đẩy đầu tư nước ngoài mới vào năm 1998 Tính đến tháng 5/2000, có đến 1.140/1.148 lĩnh vực ở Hàn Quốc được phép thu hút FDI

Ngoài những chính sách cắt giảm thủ tục hành chính, Hàn Quốc còn miễn thuế cho các hoạt động nghiên cứu, giảm tối đa 18% thuế thu nhập cho nhân sự của các công ty nước ngoài và không ngừng cải thiện môi trường sống cho các lao động nước ngoài

4 Mở cửa cho đầu tư nước ngoài đối với hầu hết các lĩnh vực của thị trường trong nước

Chính phủ đã thực hiện chính sách mở cửa cho đầu tư nước ngoài đối với hầu hết các lĩnh vực của thị trường trong nước Chỉ còn 21 lĩnh vực trong tổng số 195 lĩnh vực kinh

tế vẫn còn đóng cửa, 7 lĩnh vực trong số đó chỉ bị đóng cửa một phần Như vậy, chính phủ đã tự do hóa trên 98% nền kinh tế 2% còn lại là các lĩnh vực thuộc an ninh quốc gia, tài sản văn hóa hoặc công việc làm ăn của các nông dân nhỏ lẻ

● Tháng 1 năm 2014 Tổng thống Park Geun-hye đưa ra chính sách: thu hút các tập đoàn toàn cầu

5 Đơn giản hóa thủ tục thuế cho các giao dịch

Chính phủ có kế hoạch đơn giản hóa thủ tục thuế cho các giao dịch giữa các trụ sở của

họ tại Seoul và các công ty con ở nước ngoài hoặc công ty mẹ ở nước nhà Đề án cũng bao gồm tỷ giá neo vào mức thuế suất thuế thu nhập cho lao động nước ngoài tại trụ sở của tập đoàn toàn cầu ở mức 17 phần trăm phụ thuộc vào quy mô thu nhập của họ

Thuế suất là thấp xa so với 38 phần trăm đánh vào người Hàn Quốc kiếm được 150.000.000 ₩ hoặc nhiều hơn mỗi năm

6 Khấu trừ thuế thu nhập hiện hành cho các kỹ sư nước ngoài

Để khuyến khích các công ty nước ngoài thành lập các trung tâm R & D, kế hoạch đề xuất mở rộng các khoản khấu trừ thuế thu nhập hiện hành cho các kỹ sư nước ngoài làm việc tại các công ty nước ngoài có vốn đầu tư đến năm 2018

7 Hỗ trợ về địa điểm cho các công ty nước ngoài

Chính sách này cũng sẽ hỗ trợ về địa điểm cho các công ty nước ngoài khi họ thuê các tòa nhà để thành lập trung tâm R&D

● Bộ Tư pháp Hàn Quốc cho biết, từ tháng 9/2014 những người nước ngoài đầu tư trên 500.000 USD vào Hàn Quốc sẽ ngay lập tự nhận được thẻ cư trú vĩnh viễn (hạng F5)

Như vậy Hàn Quốc đã hạ mức tiền đầu tư từ 2 triệu USD xuống còn 500.000 USD nhằm khuyến khích các nhà đầu tư nước ngoài

Theo bộ tư pháp nước này, trước đây chính phủ chủ trường kiểm soát chặt chẽ việc cấp visa dài hạn cho người nước ngoài Điều này không khuyến khích các nhà đầu tư trong việc mở rộng quy mô và buộc họ phải xin visa đầu tư ngắn hạn (Hạng D8) Với việc sửa đổi quy định này, nhà chức trách hy vọng số người nước ngoài đầu tư vào Hàn Quốc

sẽ tăng nhanh chóng trong thời gian tới

8 Bỏ quy định giới hạn số nhân công nước ngoài dưới 20% tổng số lao động

Hàn Quốc dự định tạm bỏ quy định giới hạn số nhân công nước ngoài tại các công ty

có vốn đầu tư của nước ngoài ở mức dưới 20% tổng số lao động

● Từ tháng 6/2015, các công ty mới của nước ngoài có quy mô nhỏ sẽ được phép

bỏ qua quy định này trong vòng hai năm

Quy định này chủ yếu là để tạo thêm việc làm cho người lao động Hàn Quốc, song thường gây khó khăn cho các chủ doanh nghiệp người nước ngoài, đặc biệt là tại các công ty mới thành lập, trong việc tuyển dụng người lao động Hàn Quốc nói được tiếng nước ngoài đó

9 Cho phe ́ p người nước ngoài nắm giữ 100% cổ phần của các công ty

Trong đó công ty nước ngoài sẽ được nắm giữ 100% cổ phần của các công ty sửa chữa,

bảo dưỡng và vâ ̣n hành hàng không, so với mức dưới 50% theo quy đi ̣nh hiê ̣n hành

● 6/2015 Chính phủ Hàn Quốc thông báo sẽ loa ̣i bỏ hoă ̣c nới lỏng thêm khoảng 10 quy đi ̣nh đang bi ̣ cho là cản trở dòng FDI

Chính phủ cũng sẽ rà soát 29 lĩnh vực kinh doanh khác hiê ̣n không cho phép người nước ngoài đầu tư một phần hay toàn bô ̣ để cân nhắ c lĩnh vực nào có thể mở cửa cho các nhà đầu tư nước ngoài

10 Tổ chức “Nhóm đặc nhiệm COVID-19 (TFT)” cho các công ty có vốn đầu

tư nước ngoài để hỗ trợ trong thời điểm COVID-19

Bộ Thương mại, Công nghiệp và Năng lượng và địa phương các chính phủ đã cùng nhau tổ chức “Nhóm đặc nhiệm COVID-19 (TFT)” cho các công ty có vốn đầu tư nước ngoài” để hỗ trợ những người bị ảnh hưởng bởi COVID-19

TFT đã được tiến hành một khảo sát hàng ngày đối với khoảng 630 công ty có vốn đầu

tư nước ngoài tại Hàn Quốc để hỗ trợ các hoạt động kinh doanh khẩn cấp của họ bằng cách thực hiện các biện pháp phòng chống dịch bệnh và hỗ trợ họ với việc mua sắm nguyên vật liệu

Muốn hướng đầu tư tập trung vào 12 ngành công nghiệp có tiềm năng phát triển cao, trong đó có các ngành tiên tiến như công nghệ sinh học, thiết bị bán dẫn, bộ pin sạc điện

và ô tô

11 Nới lỏng các quy tắc và hạn chế đối với đầu tư nước ngoài, cải thiện các biện pháp hạn chế đối với đầu tư nước ngoài

Từ năm 1997, Hàn Quốc bắt đầu thực hiện chính sách tích cực để thu hút các doanh nghiệp và đầu tư nước ngoài, nới lỏng các quy tắc và hệ thống liên quan đến đầu tư nước ngoài, nới lỏng các hạn chế đối với đầu tư công nghiệp mới, nghiên cứu và khắc phục các hạn chế đối với đầu tư nước ngoài, cải cách các loại biện pháp ngăn cản đầu

tư nước ngoài, cũng như cải thiện các hạn chế đối với đầu tư nước ngoài

Bên cạnh đó, chính phủ không chỉ chỉ định các khu đầu tư nước ngoài độc lập riêng lẻ

mà còn mở rộng phạm vi được chỉ định sang ngành dịch vụ tri thức Ngoài ra, họ đã cải thiện các điều kiện đầu tư vào pháp nhân phi lợi nhuận, chẳng hạn như khoa học, công nghệ, học thuật, nghệ thuật, v.v Họ cũng đã sắp xếp và sửa đổi danh mục công nghệ cao, nâng cấp các ngành công nghiệp chính, chủ yếu trong lĩnh vực công nghệ cao công nghiệp năng lượng mới, và tiến hành giảm thuế Họ đã mở rộng phạm vi hỗ trợ giảm giá thuê địa điểm, từ lĩnh vực sản xuất sang các ngành công nghiệp mới

Vào năm 2023, Bộ Thương mại, Công nghiệp và Năng lượng mở rộng hỗ trợ cho ngành công nghệ cao nhằm mục đích tăng cường thu hút đầu tư trực tiếp nước ngoài, hỗ trợ việc làm và đầu tư R&D của các công ty có vốn đầu tư nước ngoài, đồng thời mở rộng các lợi ích và ưu đãi về thuế để thu hút một cách chiến lược và doanh nghiệp có vốn đầu tư nước ngoài

12 Đơn giản hóa các quy định nhằm tạo điều kiện cho nhà đầu tư nước ngoài

Do các nhà đầu tư nước ngoài vẫn gặp nhiều khó khăn về quy định, Ban Thư ký Thanh tra Đầu tư Nước ngoài đã giới thiệu nhiều thành tựu và ví dụ về cải thiện quy định

Ví dụ, các vấn đề như khả năng dự đoán của các ưu đãi như hỗ trợ tiền mặt và thuế, giấy phép chồng chéo đối với các chất bị cấm nhập khẩu, gánh nặng thủ tục hành chính đối với hóa chất R&D, quy trình xe hybrid và điện cắm điện, và các tiêu chuẩn an toàn cho xe nội địa đã giảm bớt

The South Korean government in 2019 offered a huge increment in cash and incentives for foreign companies to attract more foreign investment The government in fact increased the total cash incentive to 50 billion won compared to 6 billion last year

13 Cải tiến quy định đối với thị thực đầu tư doanh nghiệp D8

Trong số các mục chính của chương trình nghị sự, Phòng Thương mại và Công nghiệp Pháp-Hàn Quốc đã được thông báo về những cải tiến quy định đối với thị thực đầu tư doanh nghiệp D8

Thời hạn hiệu lực của visa D8 thường là một năm, tùy thuộc vào quy mô đầu tư, hiệu quả kinh doanh và hồ sơ nộp thuế Do đó, các nhà chức trách đã kéo dài thời gian lưu trú một năm của thị thực D-8-4 lên hai năm đối với các dự án khởi nghiệp vào năm

2023, ngoại trừ hoạt động kinh doanh kém

14 Sửa đổi Đạo luật thuế thu nhập để kéo dài thời gian áp dụng

Hàn Quốc đã sửa đổi Đạo luật thuế thu nhập vào ngày 23 tháng 12 năm ngoái để kéo dài thời gian áp dụng đặc biệt mức thuế suất duy nhất (19%) đối với người lao động nước ngoài từ 5 năm lên 20 năm kể từ ngày làm việc tại Hàn Quốc Điều này dự kiến

sẽ có tác động lan tỏa kinh tế đáng kể, đặc biệt là đối với các giám đốc điều hành nước ngoài được phái đi từ công ty mẹ

1 Support one-stop services and tariff incentives

All existing regulations and legislation relating to foreign direct investment are streamlined and merged into a separate legal framework known as the Foreign Investment Promotion Act (FIPA), which came into effect in November 1998

This act allows foreign investors to take advantage of one-stop service and uniform remuneration This Law aims to create a more attractive foreign investment environment with utilities such as tax incentives, cheaper factory rent, simple administrative procedures, support services, as well as human resource training

2 Increase the period of corporate income tax exemption

For high-tech investors, the corporate income tax exemption period will be increased from 8 years to 10 years

Local governments are also allowed to set their own tax reduction/exemption incentives from 8 to 15 years and are allowed to establish and operate foreign-invested industrial parks to attract FDI Cumbersome red tape, which once discouraged foreign investors, has now been eliminated, or simplified

A lot of other incentives, such as tax exemptions or reductions, are put in place to boost foreign direct investment For example, income tax and corporate tax are exempt or reduced for high-tech industries for a period of 7 years State-owned real estate can be given to firms invested from abroad for up to 50 years at favorable prices, and sometimes free of charge under specific circumstances Free investment zones were also formed to accommodate large-scale foreign direct investment

3 Gradually cancel import bans, reduce the number of items subject to tariffs

The State continues to gradually cancel import bans, reducing the number of items subject to tariffs

● On February 15, 1995, the landmark law was enacted when South Korea allowed foreign investors to report investment activities only to local regulators, without having to apply for approval from the government as before

After the 1997 economic crisis, South Korea enacted a new Foreign Investment Promotion Act in 1998 As of May 2000, 1,140 out of 1,148 sectors in South Korea were allowed to attract FDI

In addition to policies to reduce administrative procedures, Korea also exempts taxes for research activities, reduces up to 18% of income tax for personnel of foreign companies and constantly improves the living environment for foreign workers

4 Open to foreign investment for most sectors of the domestic market

The government has implemented an open-door policy for foreign investment in most sectors of the domestic market Only 21 sectors out of a total of 195 economic sectors remain closed, 7 of which are only partially closed Thus, the government has

liberalized over 98% of the economy The remaining 2% is in areas of national security, cultural property or the business of small farmers

● In January 2014, President Park Geun-hye introduced a policy: attracting global corporations

5 Simplify tax procedures for transactions

The government plans to simplify tax procedures for transactions between its headquarters in Seoul and its overseas subsidiaries or parent companies in its home country The scheme also includes an exchange rate anchored to the income tax rate for foreign workers at the global corporation's headquarters at 17 percent depending on the size of their income

The tax rate is far below the 38 percent levied on South Koreans earning ₩150 million

or more per year

6 Prevailing income tax deductions for foreign engineers

To encourage foreign companies to set up R&D centers, the plan proposes extending current income tax deductions to foreign engineers working at foreign-invested companies through 2018

7 Location support for foreign companies

The policy will also provide location support for foreign companies as they lease buildings to set up R&D centers

● South Korea's Ministry of Justice said that from September 2014, foreigners who invest more than $500,000 in South Korea will immediately receive a permanent residence card (F5 class)

South Korea has lowered its investment amount from $2 million to $500,000 to encourage foreign investors

According to the country's Ministry of Justice, the government has previously strictly controlled the issuance of long-term visas to foreigners This discourages investors from

scaling and forces them to apply for a short-term investor visa (Tier D8) With the revision of this regulation, authorities hope that the number of foreigners investing in South Korea will increase rapidly in the near future

8 Remove regulations limiting the number of foreign workers to less than 20% of the total number of employees

South Korea plans to temporarily lift a rule limiting the number of foreign workers at foreign-invested companies to less than 20 percent of the total workforce

· From June 2015, new small-scale foreign companies will be allowed to bypass the rule for two years

This regulation is mainly to create more jobs for Korean workers, but often makes it difficult for foreign business owners, especially at start-up companies, to recruit Korean workers who speak the foreign language

9 Allows foreigners to hold 100% shares of companies

In which, foreign companies will be able to hold 100% shares of aviation repair, maintenance and operation companies, compared to less than 50% under current regulations

● 6/2015: The Korean government announced that it would remove or relax about

10 more regulations that are believed to hinder FDI flows

The government will also review 29 other business sectors that do not currently allow foreigners to invest in part or in whole to consider which ones could be open to foreign investors

10 Organization of "COVID-19 Task Force (TFT)" for foreign-invested companies to support in the time of COVID-19

The Ministries of Trade, Industry and Energy and local governments have come together to organize the "COVID-19 Task Force (TFT)" for foreign-invested companies" to support those affected by COVID-19

TFT conducted a daily survey of about 630 foreign-invested companies in Korea to support their emergency business activities by implementing epidemic prevention measures and assisting them with the procurement of raw materials

It wants to focus on 12 industries with high growth potential, including advanced industries such as biotechnology, semiconductors, rechargeable battery packs and automobiles

11 Relaxation of rules and restrictions on foreign investment, improvement

of restrictive measures on foreign investment

Since 1997, Korea began to implement an active policy to attract foreign businesses and investments, relaxing rules and systems related to foreign investment, loosening restrictions on new industrial investment, researching and overcoming restrictions on foreign investment, reform of various types of measures that discourage foreign investment, as well as improve restrictions on foreign investment

Besides, the government not only designated individual independent foreign investment zones but also expanded the scope of the designation to the knowledge services industry In addition, they have improved the conditions for investing in non-profit legal entities, such as science, technology, academia, art, etc It has also streamlined and revised its high-tech portfolio, upgraded key industries, mainly in the high-tech sector, the new energy industry, and implemented tax breaks They have expanded the scope

of support to reduce location rents, from the manufacturing sector to new industries

In 2023, the Ministry of Trade, Industry and Energy extends support to the high-tech sector with the aim of increasing the attraction of foreign direct investment, supporting employment and R&D investment of foreign-invested companies, and expanding tax benefits and incentives to strategically and firmly attract businesses foreign-invested

12 Simplify regulations to facilitate foreign investors

As foreign investors still face many regulatory difficulties, the Foreign Investment Inspection Secretariat has introduced many achievements and examples of regulatory improvement

For example, issues such as the predictability of incentives such as cash assistance and taxes, overlapping licenses for imported banned substances, red tape burdens on R&D chemicals, hybrid and plug-in vehicle processes, and safety standards for domestic vehicles have eased

13 Regulatory improvements to the D8 business investor visa

Among the main items on the agenda, the Franco-Korean Chamber of Commerce and Industry was informed of regulatory improvements to the D8 corporate investor visa

The validity period of a D8 visa is usually one year, depending on the size of the investment, business performance and tax filing As a result, authorities have extended the one-year stay of the D-8-4 visa to two years for startup projects in 2023, excluding poor business performance

14 Amending the income tax act to extend the period of application

South Korea amended the Income Tax Act on December 23 last year to extend the period of special application of the single tax rate (19%) for foreign workers from 5 years to 20 years from the date of employment in Korea This is expected to have significant economic spillover effects, especially for foreign executives dispatched from the parent company

South Korea expands foreign investment benefits to entertainment facilities

The Ministry of Trade, Industry and Energy last year enacted and notified changes in the country's law to offer foreigners Investing in entertainment facilities like gyms, museums and musical theaters in Korea tax Incentives and rent discounts The move is seen to further bolster foreign investment in the country amidst the pandemic-induced slowdown South Korea has designated foreign investment zones, located Inside

designated state industrial sites, to attract capital from foreign firms with advanced technology to invest in the country

Under the amended rule, foreigners investing in entertainment facilities that have been newly designated as foreign investment zones will be offered 50 per cent state support The discount, however, will be a bit lower at 40 per cent for foreign investment zones

in Seoul and surrounding areas Basic infrastructures such as access road will be provided by the government

Other benefits for foreigners investing in specially designated investment zones include exemption from corporate tax and income tax for the next 7 years and then 50 per cent for another three years Foreigners investing in these desigriated zones will also be entitled to an extensive range of local tax exemption benefits such as acquisition tax South Korea company registration tax property tax, and composite land tax for a period ranging from eight to fifteen years

The Korean government's move to include entertainment activities is seen as part of its efforts to boost sliding foreign investment in the country However, critics argue that such a move could invite only entertainment facilities with state support instead of factories and advanced machinery and technologies that could bolster the country's industrial competitiveness

2.2 Thực tra ̣ng thu hút FDI của Hàn Quốc giai đoa ̣n 2016 - 2022 (PHONG) (đã cho vào slide)

Source: MacroTrends

Thu hút FDI của Hàn Quốc trải qua những biến động đáng kể từ năm 2016 đến năm

2022, nhưng xu hướng chung là tích cực Thu hút FDI của đất nước đạt giá trị cao nhất

là 18,03 tỷ USD vào năm 2022, phản ánh tốc độ tăng trưởng 49,1% so với năm 2016 Tuy nhiên, FDI đã giảm khoảng 32% trong năm 2018, điều này có thể là do căng thẳng thương mại Mỹ-Trung và hậu quả là kinh tế toàn cầu kinh tế không chắc chắn

Chính phủ Hàn Quốc đã và đang tích cực đẩy mạnh các chính sách nhằm thu hút thêm vốn đầu tư nước ngoài vào nước này Năm 2015, chính phủ đã công bố "Kế hoạch xúc tiến đầu tư nước ngoài", nhằm thu hút 20 tỷ USD vốn FDI hàng năm vào năm 2020 Kế hoạch này bao gồm các biện pháp như ưu đãi thuế, bãi bỏ quy định và thành lập các khu kinh tế tự do

Những chính sách này dường như đã góp phần làm tăng thu hút FDI từ năm 2016 đến

2017, với tốc độ tăng trưởng khoảng 48% Vào năm 2017, chính phủ đã ra mắt trang web "Invest KOREA", phục vụ như một điểm dừng chân cho các nhà đầu tư nước ngoài, cung cấp thông tin về các cơ hội, thủ tục và quy định đầu tư

Tuy nhiên, FDI đã giảm khoảng 32% trong năm 2018, điều này cho thấy thị trường FDI của Hàn Quốc dễ bị tổn thương trước các yếu tố bên ngoài, chẳng hạn như điều kiện

kinh tế toàn cầu và căng thẳng địa chính trị Căng thẳng thương mại Mỹ - Trung và bất

ổn kinh tế toàn cầu có thể là nguyên nhân khiến thu hút FDI năm 2018 giảm sút Thu hút FDI của Hàn Quốc duy trì ổn định tương đối trong năm 2019 và 2020, nhưng tăng lên vào năm 2021 và 2022 Chính phủ Hàn Quốc tiếp tục thúc đẩy các chính sách

để thu hút đầu tư nước ngoài, bao gồm mở rộng các khoản khuyến mãi thuế, đơn giản hóa thủ tục hành chính và thành lập một trung tâm dịch vụ đa năng cho nhà đầu tư nước ngoài

Ngoài ra, việc Hàn Quốc ứng phó thành công với đại dịch COVID-19 và tăng trưởng kinh tế mạnh mẽ của nước này có thể cũng góp phần làm tăng thu hút FDI trong năm

2021 và 2022 Đại dịch đã làm nổi bật thế mạnh của Hàn Quốc trong các ngành như công nghệ sinh học, thiết bị y tế và CNTT, mà có thể đã thu hút nhiều nhà đầu tư nước ngoài đến đất nước

Hơn nữa, những nỗ lực tích cực của Hàn Quốc nhằm thu hút thêm FDI trong ngành công nghệ cao cũng đã thành công Năm 2019, Hàn Quốc xếp thứ ba toàn cầu về số lượng đầu tư nước ngoài công nghệ cao mà nước này thu hút được, sau Hoa Kỳ và Trung Quốc Điều này một phần là do cơ sở hạ tầng công nghệ tiên tiến của Hàn Quốc, lực lượng lao động có tay nghề cao và sự hỗ trợ của chính phủ cho nghiên cứu và phát triển

Tóm lại, thu hút FDI của Hàn Quốc có những biến động đáng kể từ năm 2016 đến năm

2022, nhưng xu hướng chung là tích cực Sự gia tăng thu hút FDI trong năm 2021 và

2022 có thể là nhờ những nỗ lực tích cực của Chính phủ Hàn Quốc nhằm thu hút thêm đầu tư nước ngoài, cũng như việc Hàn Quốc ứng phó thành công với đại dịch COVID-

19 và tăng trưởng kinh tế mạnh mẽ Tuy nhiên, thị trường FDI của Hàn Quốc dễ bị tổn thương bởi các yếu tố bên ngoài và Hàn Quốc có thể cần tiếp tục thúc đẩy các chính sách thuận lợi để thu hút thêm đầu tư nước ngoài trong những năm tới

Korea's FDI attraction experienced significant fluctuations from 2016 to 2022, but the overall trend is positive The country's FDI attraction reached its highest value of

$18.03B in 2022, reflecting a growth rate of 49.1% from 2016 However, FDI fell by approximately 32% in 2018, which could be due to the US-China trade tensions and the resulting global economic uncertainty

The Korean government has been actively promoting policies to attract more foreign investment to the country In 2015, the government announced its "Foreign Investment Promotion Plan," which aimed to attract $20 billion in FDI annually by 2020 The plan included measures such as tax incentives, deregulation, and the establishment of free economic zones

These policies seem to have contributed to the increase in FDI attraction from 2016 to

2017, which reflected a growth rate of around 48% In 2017, the government launched the "Invest KOREA" website, which serves as a one-stop-shop for foreign investors, providing information on investment opportunities, procedures, and regulations

However, FDI fell by approximately 32% in 2018, which suggests that the Korean FDI market is vulnerable to external factors, such as global economic conditions and geopolitical tensions The US-China trade tensions and the resulting global economic uncertainty may have contributed to the decrease in FDI attraction in 2018

Korea's FDI attraction remained relatively stable in 2019 and 2020, but increased in

2021 and 2022 The Korean government continued to promote policies to attract more foreign investment, including the expansion of tax incentives, the simplification of administrative procedures, and the establishment of a one-stop service center for foreign investors

In addition, Korea's successful response to the COVID-19 pandemic and its robust economic growth may have also contributed to the increase in FDI attraction in 2021 and 2022 The pandemic has highlighted Korea's strength in industries such as biotechnology, medical equipment, and IT, which may have attracted more foreign investors to the country

Furthermore, Korea's active efforts to attract more FDI in the high-tech industry have also been successful In 2019, Korea ranked third globally in terms of the number of high-tech foreign investments it attracted, after the United States and China This was due in part to Korea's advanced technology infrastructure, highly skilled workforce, and government support for research and development

In conclusion, Korea's FDI attraction has experienced significant fluctuations from

2016 to 2022, but the overall trend is positive The increase in FDI attraction in 2021 and 2022 could be attributed to the Korean government's active efforts to attract more

foreign investment, as well as Korea's successful response to the COVID-19 pandemic and its robust economic growth However, the Korean FDI market is vulnerable to external factors, and Korea may need to continue promoting favorable policies to attract more foreign investment in the coming years

2.3 Những kết quả đa ̣t được và khó khăn, ha ̣n chế - Achievements and limitations

2.3.1 Kết quả đa ̣t được - Achievements

The Korean government does not develop specific policies and orientations for enterprises to invest abroad, but lets the market automatically regulate investment and business activities of the private sector In order to encourage and support foreign investment focusing on small and medium-sized enterprises (SMEs), the Korean government has developed four major policy groups to support businesses:

(1) Financial support, mainly through the Import-Export Bank of Korea, Korea Eximbank;

(2) Support loans up to 90% of the total registered investment capital for small and medium enterprises; The State Export Insurance Corporation guarantees direct and indirect investments;

(3) Tax support and promotion of agreements on double taxation avoidance and investment protection;

(4) Support for investment promotion through Korea Trade and Investment Promotion Agency (KOTRA) mainly providing information and carry out investment promotion activities to support small and medium enterprises and loosen and simplify regulations

on registration of offshore investments

In addition, the Korean Cultural Wave (KOREAN WAVE) is also deployed strategically and systematically, not only promoting Korean culture, generate revenue

directly for participating organizations and individuals, but indirectly build a positive image of Korea, thereby promoting trade and investment, especially in consumer and electronic products (terminal products) in developing countries

At the same time, the Korean Government also directly supports domestic companies and corporations in accessing fields such as atomic energy - energy, high-speed railway, large-scale transport infrastructure, defense equipment, aviation - space (but in a new field, Korea is still relatively less competitive and less experienced than previous countries such as France, Germany, Japan, USA ) in overseas markets through political advocacy, combining ODA with private investment… to support enterprises to export technology abroad, putting Korea on par with the group of leading countries, going ahead

The South Korean government takes retaining established investors seriously, as reinvestments accounted for nearly 60% of total investments in recent years

In terms of trade policy, South Korea has embarked on a multi-track strategy that embraces multilateral liberalization at the World Trade Organisation and regional free-trade agreements (FTAs) Already, South Korea has inked agreements with the US, Association of South-east Asian Nations (ASEAN) countries and the EU In a report by the Korea Institute of International Economic Policy, the South Korea-US FTA is projected to increase the country's real GDP by 2% and exports by 5% in the long term

South Korea is proud to boast a list of success stories Scania, a Sweden-based truck producer, has invested in South Korea for three decades and has expressed confidence about doing business in the country Scania president and managing director Kjell Ortengren says: “South Korea has been a good country for us to invest in, offering a stable environment where regulations don’t change overnight.”

Large Korean enterprises such as Samsung, Hyundai, LG, Kumho Asiana, GS, Lotteria have also become enterprises with significant contributions to Vietnam's