Korean Investment in Vietnam Expected to Be More Diverse, Grow in Quantity and Quality

The Korea-Vietnam Business Summit is scheduled for November 8 - 9 in Quang Nam Province. Ahead of the event, Vietnam Business Forum has conducted an interview with Mr. Kim Ki Joon, Regional Director General for South East Asia & Oceania, the Korea Trade-Investment Promotion Agency (KOTRA), with respect to Vietnam-Korea trade and investment relations. Lan Anh reports.

Could you please tell us about Vietnam’s current investment and business environment? What are the opportunities for Korean businesses when investing in Vietnam?

There is no doubt that the enhancement of market access and establishment of favorable trade and investment environment has bolstered Korean investors` interests in Vietnam. It can be confirmed not only by the increased number of projects or amount invested, but also by the expanded sectors of investment.

It is clear that the pace of Korean companies’ entry into Vietnam will become faster, and is expected that investments will grow both in terms of quantity and quality. In Korea, there are many companies with abundant capital, high technical skills and strong management abilities attempting to explore new markets, and they are especially paying attention to Vietnam.

As mentioned above, Vietnam has great potential as a major partner with abundant natural materials, labor and especially growing GVC in every industry. If Vietnamese government continues to improve its business environment, I believe Korean companies’ investment in Vietnam will be more diverse and advanced in the future.

How would you comment on the trend of Korean investors moving away from China and other countries in Southeast Asia into Vietnam in recent years?

Recently, as Vietnam has become strategic cooperation partner and a major export market in the global economy, not only manufacturing companies but also various industries in Korea including distribution and service sectors are paying attention to Vietnam.
Business and investment environment in Vietnam is continuously improved, along with the effort of Vietnam government such as administrative reform, simplification of investment procedures, support for start-ups, and enterprise innovation. Also, in recent years, Vietnamese government has actively participated in trade agreements, thereby creating a more favorable trade environment for foreign investors as well as expanding opportunities to participate in the global value chain through Vietnam. This is one of many factors that increase the movement of Korean companies in other countries, including China into Vietnam.

In your opinion, to support businesses of both sides, which cooperation area should the two Governments give the first priority?

Vietnam has recorded an average annual economic growth rate of 6-7% based on a population of 97 million. Last year, it achieved the highest growth rate of 7.08% in 10 years and recorded even growth rates in each industry. It seems that business opportunities are emerging in every industry in Vietnam. However, especially, Vietnamese government has strongly announced policies on high value-added technologies such as 4th industrial revolution and ICT field.
Korean companies, as one of the best countries in IT and high technology field, with excellent technology, can be a good partner of Vietnam by joint projects and technology cooperation. Not only the ongoing projects such as VKIST and smart city construction plans, also, two governments should come up with ways to achieve strategic cooperation in the ICT field.

In the coming time, will KOTRA have any practical solutions and actions to connect and support enterprises of both sides?

In Vietnam, KOTRA serves various support programs based on three trade offices located in Hanoi, Ho Chi Minh and Da Nang to promote trade and investment between the two countries.

In particular, on November 8-9, in collaboration with the Vietnam Chamber of Commerce and Industry (VCCI), the Korea - South & Southeast Asia Business Coalition will hold the ‘Korea-Vietnam Business Summit’ in Quang Nam Province, central Vietnam.

More than 500 people from both countries will participate in the event, consisting of consultation sessions and business forum including Prime Minister Nguyen Xuan Phuc's special speeches, as well as a business meeting for cooperation between Korean and Vietnamese companies.

Especially, we invited Start-ups from Vietnam and Korea so that they could make new momentum to drive the future of two countries with their creativity and passion.

We expect that this event would be an opportunity for Vietnam and Korean companies to diversify FDI in the north and south by introducing Vietnam`s mid-regional development and foreign investment plans.

Thank you very much!