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Envoy: Korean companies can open plants in Azerbaijan

Oil&Gas Materials 6 December 2016 13:06 (UTC +04:00)
Korean companies are ready to cooperate in building petrochemical plants in Azerbaijan.
Envoy: Korean companies can open plants in Azerbaijan

Baku, Azerbaijan, Dec. 6

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Korean companies are ready to cooperate in building petrochemical plants in Azerbaijan, said Korea’s Extraordinary and Plenipotentiary Ambassador to Azerbaijan Kim Chang-gyu.

The ambassador made the remarks during his meeting with a delegation led by President of Caspian Energy International Media Group Natalya Aliyeva.

Speaking about the energy cooperation, Kim Chang-gyu said that the attention should be paid to petrochemistry, because the Korean industry is very competitive in that field.

“We do not produce any oil or gas in our country, but we are producing a huge amount of petrochemical products and export them to foreign countries,” noted the ambassador. “Actually, petrochemical products are number one export products of our country. So, we can cooperate in this area.”

Currently, the Korean company is building a fertilizer plant in Sumgait.

Assessing the ongoing economic reforms in Azerbaijan, the diplomat said that the “diversification of industries is very important, if a country wants to have a strong economy”.

“Korea is a very advanced country in each of the industrial areas. We are strong in petrochemistry, manufacture, high technology, ICT, medical service. Since the Government of Azerbaijan is committed to diversifying and improving the national economy, we are ready to share our experience and our technology”, noted Kim Chang-gyu designating five areas as the fields of strategic cooperation between the two countries: medical service, ICT, petrochemistry, tourism and transportation.

He also said that many Korean brands are doing business in Azerbaijan.

“They have their offices here, but still have not opened their factories in Azerbaijan. The car market and mobile phones market are not very large in Azerbaijan. Therefore, it is not easy for Korean companies to set up their factories here”, he said. “But if we consider the entire Caucasian market, including Georgia, the south of Russia and the west of Central Asia, I think it might be possible to open large production facilities here.”

Kim Chang-gyu added that Samsung and Hyundai will still be hesitating whether to open a factory here or not.

The ambassador believes that in order to attract Korean investments in Azerbaijan, “the Government of Azerbaijan should provide more incentives to the Korean companies in terms of tax, customs clearance and administrative procedures”.

According to the high-ranking diplomat, free trade agreements like those the Republic of Korea has with the United States will be required to enable the Korean companies have more opportunities to expand their business in Azerbaijan.

“Only when Korean investors are confident of their business success, they come”, said Kim Chang-gyu.

He noted that the business environment of Azerbaijan has improved notably since when the Azerbaijani government started the reforms, but still there is much work to be done in this regard.

“I highly appreciate the efforts of the Government of Azerbaijan aimed at improving the business environment here. It achieved much success in this area and already secured some foreign investment flows into the country,” said the ambassador. “I believe that as long as the reforms continue, many more foreign companies will invest their money in Azerbaijan.”

The diplomat went on to say that the Republic of Korea is very active in sharing its experience and technologies in the ICT sector with other countries.

In particular, he said, “Azerbaijan is a very important country in the cooperation within the ICT industry”.

Ambassador Kim Chang-gyu noted that many Korean delegations will visit Azerbaijan in 2017, because next year Korea and Azerbaijan are marking the 25th anniversary of the bilateral diplomatic relations.

On this occasion it is planned to hold joint events, including cultural, political, economic and scientific events, he added.

The diplomat also said that the talks are now ongoing with AZAL to launch a direct flight between the two countries.

“We are suggesting two options. The first option is a direct flight through Bishkek, because Bishkek is situated on the straight line from here to Seoul, and also through Ulaanbaatar, Mongolia”, added Kim Chang-gyu.

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