[THE INVESTOR] South Korean firms are yet make adequate profits on their investments in Vietnam, a trade report noted on July 20.

South Korean companies invested an aggregate total of US$15 billion in Vietnam as of the end of last year, the third-largest amount in a foreign country, according to the Korea Trade-investment Promotion Agency. The rate of operating profit was 2.3 percent and net profit 0.6 percent, falling short of the 3.4 percent average for operating income and 2.6 percent for net income among Asian firms doing business in Vietnam.

The report said corporate performance may improve once the Regional Comprehensive Economic Partnership is concluded this year as planned.

The mega deal between 10 member states of the Association of Southeast Asian Nations plus South Korea, China, Japan, India, Australia and New Zealand would create an economic bloc accounting for half of the world’s population and nearly 30 percent of the global trade and output.

The KOTRA report said the RCEP’s benefit for South Korea is that it can import intermediate goods at a cheaper price from among different countries and export finished products to countries like Vietnam. Such process would create added value for South Korean exporters, the report said.

(theinvestor@heraldcorp.com)