According to experts, Vietnam is a place where Korean enterprises are deeply involved in the supply chain, while enhancing cooperation in emerging industries.
According to The Korea Times , the state visit of South Korean President Yoon Suk-yeol to Vietnam was accompanied by an economic delegation of 205 people, including leaders of five leading Korean corporations and six major economic organizations.
Companies and businesses in many fields such as retail, finance, law, healthcare, information technology and service sectors...
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Some important members of the Korean economic delegation (from left to right: Samsung Electronics Chairman Lee Jae-yong; SK Group Chairman Chey Tae-won; Hyundai Motor Group Executive Chairman Chung Euisun; and LG Group Chairman Koo Kwang-mo). Photo: The Korea Times. |
The three-day visit is expected by Korean businesses to be an opportunity to expand cooperation with Vietnamese businesses into new areas such as supply chain; minerals; new and renewable energy; science and innovative technology; smart cities...
At the same time, it is an opportunity to help Korea reduce its dependence on the Chinese economy, avoiding instability from competition between China and the US related to supply chains and other issues.
Increase presence
Industry officials expect the heads of major South Korean business groups such as Samsung Electronics Chairman Lee Jae-yong; SK Group Chairman Chey Tae-won; Hyundai Motor Group Executive Chairman Chung Eui-sun; and LG Group Chairman Koo Kwang-mo to announce new investments that will open up greater opportunities for future cooperation between the two countries.
Chairman Lee Jae-yong is expected to be more active as Vietnam is a key business destination for Samsung. Samsung Electronics produces nearly half of its Galaxy smartphones at factories in Bac Ninh, Thai Nguyen and Ho Chi Minh City.
The importance of cooperation is further emphasized when Galaxy smartphones contribute about one-fifth of Vietnam's total export turnover.
SK Group is also investing heavily in Vietnam, seeing good growth potential. The group established SK Southeast Asia Investment Corp. in 2018. Notable deals include buying a 9.5% stake (equivalent to 470 million USD ) in Masan Group or investing 1 billion USD in Vingroup.
Hyundai Group has brought about significant changes in the Southeast Asian and Middle Eastern markets, where Japanese companies previously held large market shares, especially Toyota's dominance. And Vietnam is one of the key countries in this field.
In 2017, Hyundai Motor established a joint venture with Thanh Cong Group in Ninh Binh Province, Hyundai Thanh Cong Motor Vietnam (HTMV). The company's models have held the top position in sales until 2021. Hyundai Motor and Kia plan to produce four more models in the second half of this year at HTMV Plant 1 and 2, aiming to enter the Vietnamese electric vehicle market.
Meanwhile, LG Group entered the Vietnamese market in 1995 and has been steadily increasing its investment under the leadership of Chairman Koo Kwang-mo. In 2015, LG integrated its manufacturing plants in Hung Yen and Hai Phong into the LG Hai Phong Technology Complex, positioning it as a global manufacturing hub.
The company plans to invest $1.5 billion by 2028 to establish and expand its production lines. LG currently operates a total of 12 subsidiaries in Vietnam, including LG Electronics; LG Display; LG Innotek; LG CNS; LG Chemical LG International... with a production scale of $12 billion last year, these companies account for about 3% of Vietnam's GDP.
"Vietnam is not only one of the top three trading partners along with the US and China, but also a country where Korean businesses participate in the supply chain, while strengthening cooperation in emerging industries and technological advancements," a Korean official in the industry added.
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South Korean President Yoon Suk Yeol (right) talks with participants at the Vietnam-Korea trade fair. Photo: Yonhap. |
Wide open economic cooperation opportunities
According to Yonhap , during his visit to Vietnam, President Yoon Suk Yeol visited the booths of K-Industry Showcase, where he experienced products from major Korean companies as part of the Vietnam - Korea trade fair.
The K-Industry Showcase event allows Vietnamese consumers to learn about bilateral economic cooperation with more than 8,800 Korean companies employing more than 700,000 workers in Vietnam, contributing about 30% of the Southeast Asian country's export turnover.
The exchange event is also an opportunity to promote the export of goods made in Korea to Vietnam, including electronics, automobiles, home appliances, cultural content, agricultural and aquatic products.
It is known that the booths of K-Industry Showcase gathered 100 small and medium enterprises, Korean startups and more than 200 representatives of Vietnamese consumers to visit and learn. Here, 400 direct consultations took place between the two sides.
Commercial contracts estimated to be worth up to $100 million are expected to be signed over the next three years. For short-term agreements of one year, the economic value is estimated at around $40 million .
Also related to the bilateral cooperation between Vietnamese and Korean enterprises, Hyundai CEO Chung Ki-sun recently visited Hyundai - Vietnam Shipbuilding Co., Ltd. (HVS).
Mr. Chung visited the factory in Khanh Hoa to check the shipbuilding progress and encourage the spirit of executives and employees.
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