Advancing Comprehensive Investment Cooperation and Sustainable Development

10:26:50 AM | 7/8/2024

Prime Minister Pham Minh Chinh successfully concluded his visit to the Republic of Korea, marking the inception of new direction in bilateral investment cooperation.

Prime Minister Pham Minh Chinh witnesses the signing of cooperation agreements between businesses from the two countries

During his official visit to Korea from June 30 to July 3, 2024, Prime Minister Pham Minh Chinh engaged in important discussions with President Yoon Suk Yeol, Prime Minister Han Duck-soo, Speaker of the National Assembly Woo Won-shik, and prominent Korean business figures. This visit not only strengthened bilateral ties but also catalyzed investment prospects, particularly in key industries.

Vietnam - Potential investment destination for Korean businesses

Korea is currently the largest foreign investor in Vietnam, with US$90 billion of investment capital, 9,863 projects and over 8,000 companies.

Korean investment projects are engaged in many fields, from industrial production and infrastructure construction to information technology and services. This has created hundreds of thousands of jobs for Vietnamese workers and contributed significantly to Vietnam's economic development.

Korean President Yoon Suk Yeol affirmed that Vietnam is a potential investment destination for Korean businesses, stressing that the country not only has a favorable business environment but also has young, abundant and qualified human resources. This creates ideal conditions for Korean businesses to invest and develop in Vietnam.

During a meeting with Prime Minister Chinh, President Yoon expressed his delight that the two-way relationship has been increasingly strengthened and developed. He emphasized that Prime Minister Chinh's visit has made an important contribution to promoting the effectiveness of the action program for implementation of the comprehensive strategic partnership upgraded in December 2022.

The two leaders agreed that reinforcing economic cooperation, especially in investment, will be a key factor in achieving the bilateral trade target of US$100 billion by 2025 and US$150 billion by 2030.

Vietnamese Prime Minister Pham Minh Chinh and his Korean counterpart Han Duck-soo witness the signing of MoU on Korea's non-refundable aid to Vietnam between Vietnamese Ministry of Planning and Investment and Korean Ministry of Foreign Affairs 

Many leading Korean firms seek to expand investment in Vietnam

During the visit, six prominent Korean corporations signaled their commitment to expanding investments in Vietnam, thereby injecting significant momentum into bilateral economic cooperation. These corporations are poised to seize abundant opportunities in sectors such as semiconductors, digital transformation, green technologies, and biotechnology, among others.

Given closer Vietnam-Korea relationship, many leading Korean corporations have expressed their desire to expand investment in Vietnam. They not only aim to broaden their presence but also want to contribute to Vietnam's sustainable development with high-tech and green projects.

Samsung is one of the largest investment corporations in Vietnam, with over US$17 billion of registered investment capital. The firm is currently operating two mobile phone factories in Bac Ninh and Thai Nguyen and plays an important part in Vietnam's export value. This group plans to expand investment in component manufacturing and digital transformation.

LG has also invested over US$5 billion in Vietnam, mainly for electronic equipment and household appliance manufacturing projects in Hai Phong City. The group is considering production expansion and investing in renewable energy and sustainable development.

Hyundai is already present in Vietnam with auto assembly and component manufacturing projects. With up to US$1.5 billion of investment capital, Hyundai plans to enlarge production and transfer advanced technology to Vietnamese partners while investing in developing smart transportation infrastructure.

SK Group, one of Korea's largest conglomerates, has invested about US$2 billion in many fields in Vietnam, including energy, chemicals and information technology. SK Group is looking for new investment opportunities in biotechnology and artificial intelligence (AI).

Lotte Group has invested more than US$3 billion in real estate, retail and service projects in Vietnam. Lotte plans to expand its commercial center system and develop smart city projects in the coming time.

Kepco (Korea Electric Power Corporation) has invested some US$1 billion in energy projects in Vietnam. The firm is considering investment expansion in renewable energy projects such as wind power and solar power to support Vietnam’s transition to green energy.

Prime Minister Chinh's successful visit will open up many new prospects for cooperation between Vietnam and Korea. The Vietnamese government is committed to facilitating investment projects of Korean businesses, especially in semiconductors, digital transformation, green transformation and biotechnology among other industries. This cooperation not only brings economic benefits but also helps promote sustainable development and improve the welfare of the two countries' peoples.

By Giang Tu, Vietnam Business Forum