Stepping up Vietnam - South Korea Cooperation

The recent Vietnam - South Korea Cooperation Forum has proved the prospect of all-inclusive cooperation between Vietnam and South Korea. The forum was held in Hanoi by the Vietnam Chamber of Commerce and Industry (VCCI), the Foreign Investment Agency (FIA), the South Korean Embassy in Vietnam, and Korea Chamber of Commerce and Industry (KCCI). This was also a preparatory step for an official State visit to South Korea by Vietnamese President Truong Tan Sang, which was scheduled to take place in November with a series of new cooperation framework agreements.

 

As of September 2011, South Korea was the largest foreign investor in Vietnam with 2,831 projects with a total registered capital of US$23.3 billion and more than 2,500 companies operating in the Southeast Asian nation. South Korea is becoming a time-honoured strategic partner of Vietnam. Its companies mainly focus on high-tech, food processing and urban development fields which are strongly encouraged by Vietnam. Many first-rate South Korean brands like Samsung, Orion, Kangnam and Posco are doing very successful business in Vietnam.

 

VCCI President Vu Tien Loc said Vietnam and South Korea have a very good relationship, not just in economic aspect. Many South Koreans have considered Vietnam their second beloved home. Prince Ly Long Tuong of the Ly Dynasty (10-13^th centuries) settled in Korea and the Ly family here has made much contribution to Korean economic development. With abiding passion developed throughout history, we trust that the two countries will cooperate for mutual benefit in the future. Specially, in the current context of global economic slowdown, business communities of the two countries should rely on each other to get through this tough time.

Mr Seung-Yeon KIM, President of Hanwha Group, said at the forum that although South Korean direct investment in Vietnam is quite large, the current two-way trade turnover is incommensurate with potentials and prospects of the bilateral investment cooperation.

 

Mr Dang Huy Dong, Deputy Minister of Planning and Investment, stressed that South Korea is very successful in public-private partnership (PPP) model, citing that many subways and big infrastructure projects have been built in the PPP model. Seoul has built the Subway No. 9, which is now serving 256,000 passengers a day and is expected to serve 760,000 passengers a day in 2013. Nearly 1,000 South Koreans have been trained to operate and serve on this route. Vietnam hopes South Korea will share experience in this issue.

 

At the forum, many experts expressed their opinions about PPP. For the time being, the PPP formula is 30 to 70. This is proven to optimise investment efficiency and provide high-quality public services. It benefits both the State and citizens because it takes advantage of private financial resources and management while it still ensures benefits to citizens. This model is particularly good for a country like Vietnam where there is a very high demand for infrastructure development but the State Budget and loans are limited. PPP can function as a leverage for private financial resources and expertise to get involved in improving quality and expanding coverage of infrastructure services in Vietnam in the coming time. Road and bridge projects in Vietnam like National Road 5B and North - South Highway all need supports and cooperation from South Korean companies.

 

At the forum, many Vietnamese companies hoped leading South Korean companies like Hyundai will attract satellite companies to Vietnam. South Korea is also a leading country in high-quality human resource development and specially globe-wide brand development strategies. These experiences are also valuable for Vietnam.

 

South Korea calls Vietnam a kinship-connecting country. This shows the close and strong relationship of the two countries. Besides, I believe in our two-way long-term cooperation direction. South Korea defines that Vietnam is a long-term strategic and important partner in investment cooperation. In the future, the two governments need to elevate the nice bilateral relationship.

 

As global economic slowdown persists, companies need to join hands closely together to pass through the tough time. I believe that we can always find out opportunities for development in risks. We very much want to learn product supply chain development from South Korean companies. Besides, we also sought opportunities of investment cooperation with South Korean enterprises through this forum. We are now carrying out mining, steel production and urban development.