Vingroup stocks traded higher on Thursday after South Korea’s chips-to-energy conglomerate SK Group agreed to buy 6.1 percent of the Vietnamese firm for US$1 billion as it expands its investments in the Southeast Asian country.

Vietnam has one of the region’s fastest-growing economies, backed by robust exports and foreign investment.

Last year, SK bought 9.5 percent of Vietnam’s second-biggest conglomerate Masan Group Corp for $470 million.

SK Group announced in a statement on Thursday that it will actively seek new business opportunities in Vietnam as a strategic investor in conglomerate Vingroup.

“Vingroup and SK Group intend to enter into future joint strategic investments that will leverage each party’s expertise and enhance both groups’ abilities to serve the Vietnamese market and the region,” both companies said in a statement.

Vingroup stocks rose by 1.39 percent to VND116,000 (US$4.97) on Thursday after the announcement.

Stocks of its housing arm Vinhomes also improved by 1.2 percent to VND87,000 ($3.72).

SK Group is one of the largest conglomerates in South Korea, ranking 84th in the 2018 Fortune’s Global 500 list of the world’s largest companies.

Vingroup, once a real estate and retail conglomerate, has grown to become Vietnam’s largest listed firm with a market capitalization of more than $16 billion.

The company recently launched its first smartphones and cars, and is looking to make a foray into artificial intelligence.

The transaction is subject to regulatory approvals.

Credit Suisse acted as Vingroup’s sole advisor for the deal.

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