Vietnam, Korea toward New High of Cooperation

The Vietnam Chamber of Commerce and Industry (VCCI) and the Quang Nam Provincial People’s Committee co-hosted the “Vietnam - Korea Business Summit” in Nui Thanh district, Quang Nam province, on November 9, 2019.

This summit aimed to reach agreement on cooperation policies and orientations in innovative startups and technology between the two countries.

Trade value target at US$70 billion by 2020

Spurred by efforts of the two governments and business communities, the Vietnam - Korea relationship has robustly developed in many fields, especially economics, trade and investment.

VCCI President Vu Tien Loc affirmed that Korea has become one of the most important partners of Vietnam in many fields. Specifically, the country surpassed Japan, Singapore and Taiwan (China) to become the largest foreign investor in Vietnam with a total registered capital of US$65.7 billion as of September 2019. Vietnam is the fourth largest foreign investment partner of Korea after the United States, China and Hong Kong (China).

In particular, Korean investment projects in Vietnam are diverse, ranging from processing, manufacturing, electronics and energy industries to transport, logistics, real estate, wholesaling, retailing and tourism. Most major Korean corporations have been present in Vietnam, including Samsung, Hyundai, LG, POSCO, SK, Lotte and Kumho-Asiana.

In addition, Korea is Vietnam's important development partner and currently the second largest bilateral ODA donor for Vietnam.

On trade, Korea also outstripped Japan to become the second largest market for Vietnam after China. The value jumped from US$500 million in 1992 when the two countries established diplomatic relations to over US$65.8 billion in 2018. Key imports include electronic devices and components, telephones, computers, machinery and parts, apparels, and agricultural products.

Meanwhile, Korea is currently the fourth largest export market of Vietnam (after China, the United States and Japan). Vietnam - Korea Free Trade Agreement (KVFTA) helped improve the legal framework and trade policy enforcement, speed up economic restructuring, especially the business environment and competitiveness of the two economies, create new driving force to realize the goals of raising bilateral trade to US$70 billion by 2020 and achieve a balanced trade.

Providing best conditions for Korean investors

VCCI President Vu Tien Loc hopes that more than 250 Korean companies attending the summit will have investment projects in Quang Nam province to shape more industrial complexes like Truong Hai because local people are famously hospitable, industrious and innovative.

At the event, Mr. Kwon Pyung Oh, President, Chief Executive Office of the Korea Trade and Investment Promotion Agency (KOTRA), said that the bilateral trade value already reached US$68 billion a year. Now, more than 8,000 Korean companies are doing business in Vietnam. To realize the target of US$120 billion of trade value in 2020, the two countries need to join hands together, he added.

“With the purpose of building a modern industrial nation, Vietnam is seen as a rising golden dragon. The world industrial center is tending to shift to ASEAN, and Vietnam now has a great advantage. Our two countries will grow, integrate and compete with developing countries in the world,” he noted.

Speaking at the summit, Vietnamese Deputy Prime Minister Trinh Dinh Dung highly appreciated VCCI's initiative in collaboration with the Business Association of Korea - South Asia and Korea - ASEAN, KOTRA, the Quang Nam Provincial People’s Committee and related agencies to open this workshop.

He noted that this is an important event and a valuable opportunity for the governments and business communities of the two countries to exchange and share views, prospects and opportunities for development cooperation in the new phase, to promote and deepen the bilateral strategic cooperation partnership.

The future of Vietnam - Korea cooperation depends on the vision, willpower, creativity and dynamism of Vietnamese and Korean entrepreneurs, he assessed, adding that the two business communities will continue to share new ideas and creative solutions, support startup projects, boost their internal potential and strengths to become a vanguard force in economic cooperation and connectivity, thus helping strengthen and deepen the Vietnam - Korea strategic cooperation partnership.

Deputy Prime Minister Trinh Dinh Dung emphasized, “The Vietnamese government always facilitates Korean investors and enables Vietnamese and Korean businesses to forge effective cooperation, investment and business. We always see the success of Korean businesses as our own.”

PV