Vietnam is ready to offer business incentives for South Korean companies that invest in the nation’s sustainable development and digital transformation projects, Vietnamese Ambassador to Korea Nguyen Vu Tung said at the Eurasian Economic and Cultural Forum hosted by The Korea Herald on Wednesday.

Delivering the opening remarks at the forum’s third weekly gathering, the ambassador stressed that Vietnam is committed to further improving the nation’s business environment for global companies since a new foreign investment law, called the Private-Public Partnership Investment Law, took effect this year.

“There is enough potential for investments in areas of digital transformation, sustainable development, new energy, infrastructure projects, connecting airports and smart city,” he said, citing LG Display’s $4.65 billion investment in its production facilities in Haiphong and GS Energy’s $3 billion LNG power plant in Long An province as this year’s key investments made by Korean companies.

Due to the recent megadeals, Korea has become the second-largest investor in Vietnam this year after Singapore.

The ambassador said the Regional Comprehensive Economic Partnership, a new free trade pact among Asia-Pacific nations, and other investor-friendly measures have greatly boosted trade between Korea and Vietnam, with more potential lying ahead.

He said Vietnam aims to foster infra-, people- and system-focused investments with approved standards on the environment, quality and effectiveness that can be developed through research, partnerships with Vietnamese companies and investments in digital economy projects.

Tung advised Korean companies to take part in numerous projects with the help of the provincial government and the private-public partnership model.

“Vietnam is increasing consumers’ competitiveness and middle-class purchasing capacity. Vietnamese consumers prefer the quality of Korean products due to the outcome of mutual cooperation between the Vietnamese government and Korea’s economic policies,” Tung said.

Tung also shed light on tourism, human resources and the expatriate community as the key factors that have led Korean investment in Vietnam. He applauded Korea’s New Deal policy that focuses on green and digital sectors, expressing hope for furthering bilateral ties in those fields.

The weekly Eurasian Economic and Cultural Forum aims to share and enhance knowledge of the international community here and expand business networks. The forum brings diplomats, CEOs and experts from Europe and Asia together to build ideas for cultural and business transformations, and to seek collaboration in pursuing shared interests and goals.