Joint venturesare the likely mode of eight of the 14 represented companies. For example, Bychem intendsto invest US$4 million in paint production and Ewha Dyeing Ltd. looks likely to spend US$2million to build a fabric dyeing facility.

The others prefer going it alone, like D&J Trading,which plans to invest US$2 million in manufacturing clothes for export, while some intendto proceed with less than US$1 million.

Many Korean companies have counted on the commercialsection of the South Korean Consulate General in HCMC (Kotra) to look into the investmentenvironment in Vietnam since the end of last year, a Kotra official said.

An official at the HCMC Service of Planning and Investmentsaid the number of Korean enterprises keen on Vietnam was on the increase in recentmonths, especially to produce garments, footwear, software, and furniture for export.

"A business mission from Korea arrives in HCMC everytwo weeks on average. The main draw cards are the skilled yet inexpensive labor force andthe improved investment environment in Vietnam and particularly HCMC," said anofficial at Hepza, the agency which oversees the city's industrial parks and exportprocessing zones.

Earlier this month, Daegu deputy mayor for politicalaffairs Shyn Dong Soo +led a business delegation from the Korean city to HCMC, and many ofthe represented manufacturers plan to build textile and garment mills here.

"Garment exports from Vietnam will be subject tolower tariffs after the trade agreement with America comes into force. This encouragesKorean companies to set up factories in Vietnam producing goods for sale to the UnitedStates and other markets," Shyn said.

According to the General Department of Statistics, some370 foreign-invested projects with combined registered capital of US$2 billion werelicensed in Vietnam in the first ten months of this year. Korea was the second largestinvestment source with 58 projects capitalized at US$76 million, after Taiwan with US$171million.