Korean enterprises want to cooperate in technology transfer with Vietnamese enterprises

Not only simply investing in building factories, Korean enterprises want to cooperate in joint ventures and transfer technology with Vietnamese enterprises.

The information was given at a press conference at noon on November 21 on the sidelines of the Vietnam - Korea Investment Cooperation Forum 2024.

Press conference of Vietnam - Korea Investment Cooperation Forum 2024: "Trust and cooperation: Sustainable development strategy for small and medium enterprises"

Mr. Kim Ki Mun - Chairman of the Korean Association of Small and Medium Enterprises - said that currently, Vietnam and Korea are two important trade partners, in the Top 3 of each other's export markets. 90% of Korean enterprises entering Vietnam are small and medium enterprises.

In recent times, Korean enterprises have proactively come to Vietnam to build factories and invest in production. However, in the future, Korean enterprises also want to cooperate in joint ventures, transfer technology and production experience to Vietnamese enterprises. Korean small and medium enterprises are ready to cooperate with Vietnamese small and medium enterprises.

According to Mr. Kim Ki Mun, Korea is very strong in exporting to foreign markets. This year, Korea exported about 700 billion USD abroad and surpassed Italy, France, Japan and became one of the 5 largest exporting countries in the world. Korean products in the fields of food, cosmetics as well as in many other consumer goods industries have large export volumes in the world, so it is difficult to talk about investing in a specific field. Based on many aspects and fields, Korean enterprises will continue to expand their investment abroad to produce and export their products.

“Investment expansion depends on many changes in the actual situation, however, at present, Korean enterprises are very eager to invest in Vietnam. The cultural similarities between the two countries are the factors that make Koreans feel very secure when investing in Vietnam,” Mr. Kim Ki Mun informed.

On the side of the Vietnam Association of Small and Medium Enterprises, Mr. Nguyen Van Than - Chairman of the Association said that in Vietnam, small and medium enterprises account for 97% of the total number of enterprises, annually contributing more than 40% of GDP and 60% of the labor force. In Korea, small and medium enterprises account for 99%, annually contributing 46% of GDP and 81% of the labor force. Thus, it can be said that small and medium enterprises in our two countries play a very important role in the socio-economic development of the country.

According to Mr. Nguyen Van Than, the Vietnamese market is currently attracting many Korean enterprises, becoming the third largest export market of Korea after China and the US. Favorable factors such as a young and abundant labor force, many free trade agreements (FTAs) that bring tariff advantages, preferential policies to attract investors and cultural similarities between the two countries are creating favorable conditions for Korean enterprises, especially small and medium enterprises, to expand their operations in Vietnam.

In recent years, Korea has always been the leading investor in Vietnam. As of June 2024, the total direct investment capital from Korea in Vietnam has reached nearly 87.5 billion USD with more than 10,000 investment projects, accounting for 25% of the total number of projects and more than 18% of the total registered FDI capital in Vietnam.

“Not only simply investing in building factories, we also hope that Korean businesses want to cooperate in joint ventures and transfer technology with Vietnamese businesses,” said Mr. Than.

At the press conference, sharing about the potential for cooperation between small and medium enterprises of the two countries in the field of semiconductor industry, Mr. Kim Ki Mun noted: “Semiconductor is a core industry, affecting national competitiveness. Attracting investment in the semiconductor industry is different from other industries. Therefore, there needs to be negotiations and agreements between governments, not only Korea or Vietnam but also the US and other countries. Without a foundation of government support, it is difficult for private enterprises to be proactive in this field.”

Referring to the issue of attracting foreign investment, Mr. Than said that currently, the number of Korean enterprises investing in Vietnam is very large, but on the contrary, the number of Vietnamese investors in Korea is still very small. The reason may be that Vietnam's investment environment has more attractive opportunities than Korea's. Or it may be that the capacity of Vietnamese enterprises investing in Korea is still weak. Therefore, the Vietnam - Korea Investment Cooperation Forum wants to attract enterprises, especially small and medium enterprises of the two countries to meet, exchange, share products, share technology and working methods with each other. Because if private enterprises connect on their own, it will take a lot of time and effort.

Regarding the issue of the semiconductor industry, according to Mr. Nguyen Van Than, Korea has many strengths in semiconductor microchips. We want to work with the General Department of Vocational Training to send young Vietnamese people to Korea to study and then return to work in Vietnam instead of going abroad.

Regarding the theme of the Vietnam - Korea Investment Cooperation Forum 2024 "Trust and Cooperation: Sustainable Development Strategy for Small and Medium Enterprises", Mr. Nguyen Van Than hopes that the Forum will be an important step in promoting bilateral cooperation, strengthening connections between the business communities of the two countries, contributing to the overall development of the economy and sustainable growth for small and medium enterprises of Korea as well as Vietnam.

“The 2024 Vietnam - Korea Investment Cooperation Forum focuses on promoting direct cooperation opportunities through B2B sessions connecting small and medium-sized enterprises of the two countries. This will be an important opportunity for Vietnamese and Korean enterprises to directly exchange, seek strategic partners, expand markets and cooperate in investment, thereby creating a solid foundation for long-term and sustainable development between the two sides,” said Mr. Nguyen Van Than.

It is known that within the framework of the Forum, there will be a signing ceremony of 5 memorandums of understanding (MOUs) between Vietnamese and Korean business associations, along with 10 memorandums of cooperation between businesses of the two countries, focusing on areas such as smart technology, production, product distribution and human resource training.

Source: https://congthuong.vn/doanh-nghiep-han-quoc-muon-hop-tac-chuyen-giao-cong-nghe-voi-doanh-nghiep-viet-360117.html