Many Korean enterprises consider Vietnam a 'stronghold' for research and production in the region.

03/04/2025 17:25

The discussion with 35 large Korean corporations and enterprises such as Samsung, LG, SK, Hyundai, Hyosung, Lotte... was chaired by Prime Minister Pham Minh Chinh - Photo: VGP/Nhat Bac

This is the opinion of representatives of Korean enterprises at a discussion with 35 large Korean corporations and enterprises, such as Samsung, LG, SK, Hyundai Thanh Cong, Hyosung, Lotte... chaired by Prime Minister Pham Minh Chinh on March 4 in Hanoi. This is the 5th meeting between Government leaders and foreign business communities in the past week.

Trust the Government to respond effectively to fluctuations

Mr. Ko Tae Yeon, Chairman of the Korean Chamber of Commerce in Vietnam (KoCham) assessed that Vietnam has an important position and role in the global supply chain and a strong cooperative relationship with Korea.

According to KoCham representative, attracting FDI investment in the fields of semiconductors, artificial intelligence (AI), and green energy will help Vietnam become a leading country in the high-tech field.

KoCham representative expressed: Korean enterprises are ready to cooperate to promote these fields in the coming time. Korean enterprises wish to contribute to the development of Vietnam in the journey to become a global investment center, develop a sustainable green economy and innovate.

According to a survey by KoCham, 82% of Korean enterprises believe that the Vietnamese Government is effective in responding to external fluctuations. They have faith in Vietnam's diplomatic capacity and FDI support policies in the coming time.

In 2024, Korean enterprises will invest 7 billion USD, an increase of 37.5% compared to 2023, bringing the country's accumulated FDI capital in Vietnam to 92 billion USD. Currently, there are about 10,000 Korean companies operating in Vietnam, creating more than 900,000 jobs.

KoCham Chairman Ko Tae Yeon said that Korean enterprises can participate in everything from design, manufacturing to human resource training in key projects such as the North-South high-speed railway, nuclear power...

The participation of leading Korean corporations such as Samsung, LG, SK, Hyundai, etc. is creating important marks in the development of the Vietnamese economy. These enterprises not only bring large investment capital but also contribute to technology transfer, promoting the high-tech and semiconductor industry in Vietnam.

Samsung is one of the leading corporations with strategic investments in Bac Ninh, Thai Nguyen and Ho Chi Minh City, contributing to making Vietnam an important manufacturing center in the region. LG is not far behind when continuing to expand its electronics manufacturing plants in Hai Phong.

Many Korean enterprises investing in Vietnam produce export goods for the global market, including the large market of the United States. These enterprises are quite concerned about the adjustments of tax and trade policies of the United States. Therefore, enterprises propose that the Vietnamese Government support to resolve tax issues when exporting, especially to the United States market.

Mr. Na Ki Hong, General Director of Samsung Vietnam, said that countries consider the development of the semiconductor and artificial intelligence industries as issues directly related to national security.

Vietnam has "prepared many diverse support policies at the Government level" and is in the process of considering diverse incentive mechanisms, including the development of the Digital Technology Industry Law. Vietnam proposes to develop a substantive incentive mechanism so that high-tech enterprises can confidently make investment decisions.

Mr. Moon Byong Heon, General Director of LG Electronics Vietnam Hai Phong Co., Ltd.: proposed proactive measures in responding to the reciprocal tax policy from the US Government - Photo: VGP/Nhat Bac

LG Group also continues to expand its electronics manufacturing plants in Hai Phong and has also asked the Vietnamese Government to help resolve tariff issues when exporting to the United States. An important highlight is that semiconductor corporations such as SK, Hanwha and Cho Wang Sek are placing high expectations on the development of the semiconductor industry in Vietnam.

Proposing support policies to continue expanding investment

At the seminar, representatives of a number of enterprises made recommendations related to increasing policy support for high-tech industries, investment funds, simplifying import-export procedures, modernizing the logistics system, import tax, VAT refund...

Business representatives said that the Vietnamese Government needs to have attractive incentive policies, especially in the import of high-tech equipment, reducing barriers related to customs procedures and import taxes.

In addition, Korean enterprises are also interested in improving infrastructure and logistics in Vietnam. Lotte has invested heavily in real estate and commercial projects such as Lotte Mall Hanoi, helping to promote tourism and create more jobs for thousands of Vietnamese workers.

The representative of this Group wants to be allowed to increase the land use term of the project to "have a solid foundation for long-term development" in Vietnam.

Posco Group, with extensive experience in the steel industry, is building cooperation projects with Vietnamese enterprises to transfer modern steel production technology, thereby improving product quality and reducing production costs.

Korean companies not only invest in infrastructure and production technology, but also focus on human resource development and professional training. Moreover, these companies often coordinate with local partners to build strong supply chains, thereby promoting the entire economic ecosystem in the region.

Korean enterprises also pay attention to the Vietnamese Government's policy of moving towards green energy and sustainable development.

Accordingly, in addition to focusing on technology and production, Korean enterprises also aim to develop clean energy in Vietnam. Mr. Han Michael Won, Chief Representative of SK INC Representative Office in Hanoi, said: Realizing the problem of electricity supply when enterprises continuously expand investment in Vietnam, SK Group has invested and is operating a 131MW solar power plant in Ninh Thuan, 150 MW of offshore wind power in Tien Giang (Western region), 756 MW of onshore wind power... and this Group has plans to expand more renewable energy projects.

In addition, SK Group also expanded indirect investment through private enterprises in Vietnam. By the end of 2024, the investment capital for these enterprises had reached about 2 billion USD in many industries such as: Logistics, consumer goods production....

"With our investments, we are determined to contribute to the sustainable development of Vietnam, participate in providing stable energy, SKGroup hopes to have support to participate in further development in Vietnam," said a representative of SKGroup.

Korean enterprises expect to turn Vietnam into a research "base", so they also asked the Government to consider diverse preferential mechanisms, especially in the Digital Technology Law that Vietnam is building.

Representatives of some Korean enterprises shared: Building incentive mechanisms for enterprises investing in high-tech research is very necessary. Because this field has high research investment costs and many potential risks of failure. Therefore, enterprises really need incentive mechanisms to create a legal corridor to support enterprises on this issue.

Mr. Shin Byung Chul, CEO of Hanwha Energy Corporation Vietnam Co., Ltd. Hanwha also committed to investing heavily in LNG power, especially the Hai Long gas power project worth 2.3 billion USD in Quang Tri. The group hopes that the Vietnamese Government will support in ensuring the licensing progress, as well as providing preferential policies on electricity output consumption.

Hyundai Group is expanding automobile production in Ninh Binh and aims to make Vietnam an automobile export center in the ASEAN region. This will not only help increase the localization rate but also create many job opportunities and promote the development of the supporting industry. Mr. Lee Gi Baek, Chairman of the Board of Directors of Hyundai Thanh Cong Vietnam Automobile Joint Stock Company, shared that the Group mainly supplies domestically produced and assembled cars to the Vietnamese market. Unlike many "competitors" with high import rates, the Group wants to boost production in Vietnam and plans to expand car exports to other countries such as Thailand, Myanmar, Peru, etc.

"Businesses hope to have preferential policies to support production expansion and increase automobile export output in Vietnam, improve competitiveness for the automobile industry, facilitate export promotion to contribute to promoting Vietnam's economic growth," a representative of Hyundai Thanh Cong Vietnam suggested.

Source: https://baochinhphu.vn/nhieu-dn-han-quoc-coi-viet-nam-la-cu-diem-nghien-cuu-va-san-xuat-trong-khu-vuc-102250304165310951.htm