10:18:42 AM | 7/26/2024
Mr. Luu Trung Thai, Chairman of the Board of Directors of Military Commercial Joint Stock Bank (MB), emphasized MB's readiness to establish a strong digital platform. This platform aims to enhance seamless chain interactions and broaden opportunities for the South Korean business community to explore investment prospects in Vietnam.
Mr. Luu Trung Thai, Chairman of the Board of Directors of MB, delivers a speech at the Vietnam-Korea Business Forum in Seoul
In early July 2024, within the framework of Prime Minister Pham Minh Chinh's official visit to South Korea, nearly 350 South Korean firms and 180 Vietnamese companies and officials participated in the Vietnam-Korea Business Forum.
At the forum, delegates were briefed on Vietnam’s developmental landscape, its potential and strengths, key development priorities, and strategies for attracting investments. Discussions also encompassed the bilateral relations between Vietnam and South Korea, focusing on investment, trade dynamics, and the business potential and advantages South Korean enterprises can leverage in the Vietnamese market.
“Before doing business, we must be friends”
As one of the four main speakers at the forum, Thai gave a speech on “Digital transformation in the financial industry”, focusing on three main contents: Economy, Green Economy and Circular Economy.
Offering insights from a Vietnamese business perspective on investment opportunities for South Korean companies, he emphasized the importance of two main factors for fostering swift cooperation.
Firstly, he highlighted the significance of trust and collaboration, echoing the Korean proverb: “Before doing business, we must be friends.” Secondly, he underscored the need to develop value chains amidst the current shift of manufacturing trends away from China to other nations.
"We stand ready to collaborate and facilitate introductions to trusted partners in Vietnam," he affirmed.
In addition, in an interview with the Korea Herald on July 2 in Seoul, Thai said that when South Korean businesses come to invest in Vietnam and send their personnel to live and work in Vietnam, the guaranteed delivery of care services for them will also help them do better business. Therefore, from August 2024, MB will launch the Korean language on its banking application to deliver a more convenient experience to the Korean community in Vietnam.
“Vietnamese banks have yet to offer dedicated services for Koreans residing in Vietnam, leading them to rely on Korean bank branches. Recognizing the increasing presence of Korean citizens and businesses in Vietnam, starting from August, MB will introduce a banking application in Korean, aiming to provide tailored services specifically for the Korean community,” he said.
The “handshake” between MB and POSCO International
During the Vietnam-Korea Business Forum, Prime Minister Pham Minh Chinh attended the signing of a strategic cooperation agreement between Military Commercial Joint Stock Bank (MB) and POSCO International. The forum also facilitated an extensive working session where Prime Minister Pham Minh Chinh, accompanied by senior Vietnamese officials and a delegation from MB led by Chairman Luu Trung Thai, engaged in discussions with the Chairman of POSCO Group.
Prime Minister Pham Minh Chinh highly appreciated POSCO Group’s investment and business activities in Vietnam through the effective operations of its member companies. He also welcomed the group to expand its investment and operations in Vietnam towards green development, circular economy and digital economy.
At the meeting, POSCO CEO Chang In Hwa said that POSCO is a Top 5 business in South Korea in steel, energy, trade, electric vehicle (EV) battery material manufacturing. In 2023, its revenue reached US$59 billion. In Vietnam, POSCO established four steel branches, with a total investment fund of US$1.8 billion. The group seeks to further expand its cooperation and investment in Vietnam in new fields, convert the specialized port that POSCO is using in Vietnam into a commercial port, and get an investment license for an LNG-fired power plant in Vietnam.
Sharing more about the signing of the strategic cooperation with POSCO, Chairman Thai stated that the cooperation not only shows the ability to convince South Korean “giants” but also continues to open up many opportunities for cooperation, business and investment for MB and other partners of the two countries.
Representatives of MB and POSCO at the signing of the strategic cooperation agreement
Maximizing support for Korean investors in Vietnam
Previously, at a press briefing on MB's approach to accompanying and supporting South Korean investors in Vietnam, MB’s Vice Chairman Vu Thanh Trung said that providing products and services to enable the biggest success for FDI firms, including Koreans in Vietnam, plays a very important role in MB's business policy orientations.
“To bring success to South Korean FDI firms, especially in Vietnam, MB has developed many product and service packages as well as platforms to help them achieve their investment and business success in Vietnam. On the business side, we are building very strong digital applications/platforms powered by cutting-edge technologies to enable them to manage their investment activities in Vietnam well. Insightful reporting and analysis systems are available on digital platforms for businesses,” Trung added.
In addition, MB hopes to cooperate with South Korean credit institutions to expand the QR code payment system in Vietnam.
“If we connect the upcoming MBBank App for Koreans with Korean banks, Koreans in Vietnam will be able to use our QR code system through their banking applications. We are currently looking for partners,” he said.
By Le Hien, Vietnam Business Forum