A majority of South Korean companies with plans to expand business in overseas emerging markets this year picked Vietnam as the best target, a survey showed Thursday.
Of the 537 local firms polled, 49 percent responded that they have plans to develop their businesses in the Southeast Asian nation this year, according to the survey conducted by the Korea International Trade Association (KITA).
The firms surveyed could make five selections from a list of 32 countries with annual growth of more than 3 percent in the last three years, per capita growth domestic product of at least
US$1,500 and populations of over 15 million. Brazil, Russia, India and China were not included.
Indonesia and Thailand were the second and third most preferred markets at 37.4 percent and 30 percent, respectively, followed by Malaysia at 28.5 percent and Turkey at 20.7 percent, the survey showed.
Among the top 15 most popular business destinations of the year, seven were countries in East Asia, while three were in Eurasia and two were in the Middle East, according to the KITA survey. The remaining three were countries in South America, Eastern Europe and Africa.
More than 53 percent of the South Korean companies polled said they are aiming for the local consumer market in the named countries, while 25.3 percent answered that the targeted markets will be used as a base to gain footholds in other economies nearby.
Another 24.8 percent said they will use the countries as a production base, and 22.2 percent said the expansion is to utilize the merits of existing free trade agreements. (Yonhap)
