Over 90 pct of Korean firms in Vietnam not to cut spending: survey

By Nam Kwang-sik
SEOUL, Jan. 14 (Yonhap) -- More than nine out of 10 South Korean companies
operating in Vietnam say they are not considering cutting investments in the
country over the next two years, a poll showed Wednesday.

According to the poll, 93.5 percent of companies in the Southeast Asian country
said they would invest more or maintain the status quo, while only 4.5 percent
said they would reduce spending.
Of the companies surveyed, 2 percent said they plan to leave Vietnam.
The poll of 400 South Korean companies operating in Vietnam was taken in November
of last year by the Korea Chamber of Commerce and Industry (KCCI).
Regarding business conditions in Vietnam, 44 percent of respondents said the
country's economic conditions for this year would worsen, while 31 percent said
they would take a turn for the better.
According to the survey, 39.3 percent of the companies polled predicted sales in
Vietnam would rise this year, while 28.7 percent expected a decline.
Among the respondents, 17.7 percent said their biggest difficulty would be rising
labor costs and higher prices, while 14.7 percent said it would be the country's
unpredictable administrative process.
"The global economic downturn cast a bleak outlook on the Vietnamese economy this
year, but the Vietnamese market has strong growth potential," the chamber said.
"South Korean companies should approach the market there with a view to the long
term in a bid to win lucrative business opportunities."
ksnam@yna.co.kr
(END)