Strengthening Cooperation between VCCI and Bucheon CCI, Korea

At the meeting, Dr Doan Duy Khuong said that Vietnam has always attached great importance to developing the cooperation with South Korea. In particular, VCCI is ready to cooperate with chambers of commerce of other countries for mutual development.

 

Mr Sung Man Cho said that many Korean investors are considering Vietnam an ideal destination for investment with great potential. Mr Sung Man Cho also thanked the Government of Vietnam and the VCCI for creating the most favourable conditions for Korean investors in Vietnam and believed that thanks to the efforts of two countries, cooperation between Vietnam and South Korea would be markedly enhanced.

 

Under the Joint Declaration on Comprehensive Partnership, Vietnam and South Korea agreed to expand exchanges between government officials and political leaders of the two countries, to increase the volume of trade and investment, to strengthen cooperation in engineering, industry, resources, information technology, energy. Also exchanges between the two countries in the fields of culture, arts, journalism, academia, sport and tourism and youth exchange are enhanced. Bilateral cooperation within the framework of ASEAN + 3, APEC, ASEM, the United Nations and the WTO are strengthened.

 

According to statistics by the VCCI, since the establishment of diplomatic relations, so far, two-way trade and investment between the two countries has increased by 54 times and 100 times, respectively, compared to the original start. Currently, there are about 2,700 Korean enterprises investing in Vietnam and attracting hundreds of thousands of Vietnamese labourers.

 

In 2011, South Korea officially passed Japan to become the 2nd largest market in the world to supply goods to Vietnamese market (just behind China). However, in trade with this market, the trade balance of Vietnam still suffers big deficit, accounting for US$6.63 billion in the last year. In 2013, South Korea was the third largest trading partner of Vietnam; and Vietnam was the sixth largest export market of South Korea.

 

In the first nine months of this year, Vietnam exported to and imported from South Korea US$5.1 billion and approximately US$15.6 billion, respectively. Both countries aim to bring bilateral trade to US$70 billion by 2020 and are actively promoting the signing of the Vietnam - Korea Free Trade Agreement to further promote two-way trade.

 

The main import items of Vietnam from South Korea in recent years include computers, electronic products, machinery parts, fabrics, telephone, fuel, raw material for textiles and footwear , machinery spare parts, petroleum and gas, iron and steel, completely-built-up vehicles, components and auto parts, plastic materials.

 

The main export items of Vietnam to South Korea include textiles, crude oil, vehicles and spare parts, marine products, wood and wood products, etc.

 

Also in the first nine months of this year, South Korean firms have become the largest investor in Vietnam with US$3.55 billion of newly granted and increased investment capital. If accumulated, the number has reached over US$33.4 billion, ranking second (after Japan) in the countries and territories investing in Vietnam. Particularly, Samsung Group has invested more than US$6.85 billion in the construction of cell phones and components factories in Bac Ninh and Thai Nguyen. The Group is also planning the investment in a series of other major projects other in Ho Chi Minh City, Ha Tinh, etc.

 

Investment projects of Korea to Vietnam focus on a number of areas including processing industry, fabrication industry, high technology complex, real estate, food and beverage services, construction and telecommunications.

 

Reportedly, the VCCI signed a cooperation agreement with the Korea Chamber of Commerce and Industry in 1991. In particular, the two sides agreed to establish a Committee for Economic Cooperation between Vietnam and South Korea. Chairman of the Vietnam division is VCCI Vice President Hoang Van Dung. The two sides have held 10 meetings so far.

 

In addition, under the approval of the Government of Vietnam, to promote trade, investment, tourism relations in order to create a dialogue exchanges between the business communities of the two countries, in 2011, the VCCI established Vietnam - South Korea Business Forum. The forum is the official channel for the business communities of the two countries to provide feedback to the Governments in order to create increasingly favourable business environment and cooperation framework.

 

VCCI President Vu Tien Loc is also the Chairman of the Vietnam - Korean Friendship Association, which was established on November 3, 1994. The association is responsible for providing Vietnamese people with information on the history, cultural life and achievements in national construction of the Korean people and introducing to the Korean people about Vietnamese history, culture and life, serving a bridge in economic, science and technology cooperation and cultural exchanges between the two peoples.