Korean Group Wants to Maintain Aircraft for Vietnam
Báo Thanh niên•01/07/2024
Mr. Jung In-Sub, CEO of Hanwha Aerospace, said that the group has invested in a facility to produce aircraft engine components for global customers at Hoa Lac High-Tech Park ( Hanoi ).
On the morning of July 1, within the framework of his official visit to Korea, Prime Minister Pham Minh Chinh and leaders of ministries and sectors had a breakfast discussion with large Korean enterprises investing in Vietnam.
Prime Minister and leaders of ministries and branches meet with Korean businesses
NORTH JAPAN
Sharing with the Prime Minister, Mr. Jung In-Sub, CEO of Hanwha Aerospace, said that the group has invested in a factory to produce aircraft engines and components for global customers in Hoa Lac High-Tech Park (Hanoi). Hanwha Aero Engines was invested with a total capital of 200 million USD and plans to expand the investment to 260 million USD on a total area of nearly 97,000 m2 in Hoa Lac to produce aircraft engine components and components. In 2023, the company will achieve revenue of about 140 million USD (more than 3,400 billion VND). The CEO of Hanwha Aerospace wants to expand its scale of operations and participate in the aircraft repair and maintenance chain. "Vietnam currently has a large demand but airlines have to go abroad to countries like the US or Singapore for maintenance," said Mr. Jung In-Sub. In response, Prime Minister Pham Minh Chinh welcomed Hanwha Aerospace's idea of participating in aircraft maintenance and said that the group could cooperate with major Vietnamese airlines such as Vietnam Airlines and Vietjet Air. "Vietnam is developing its aviation economy, its aircraft fleet is growing, and the need for maintenance is huge. In addition, we are building new airports such as Long Thanh, Chu Lai, and expanding Noi Bai...", the Prime Minister informed.
Leaders of Korean corporations share many wishes for investment cooperation
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At the seminar, Mr. Huh Yong-soo, Chairman of GS Energy Company, said that he had invested in the Long An power plant with a scale of 3 billion USD. In 2021, the company was granted an investment certificate and by September 2023, a pre-feasibility report had been prepared. Expressing his hope that this project will be launched as soon as possible and provide electricity to Vietnam according to the 8th electricity plan, Mr. Yong-soo hoped that the Prime Minister and Vietnamese agencies would provide legal support. Mr. Jung Yeo-nin, Chairman of Doosan Enerbility - a group with investment projects in Quang Ngai, said that he is ready to participate in wind power and gas power projects in Vietnam, provide equipment for power plants, develop wind turbines, and contribute to Vietnam's new energy industry. Hoping to receive attention from the Government on policy mechanisms, Mr. Jung Yeo-nin said that he is ready to transfer training of specialized human resources in the electricity sector. Regarding heavy industrial production, Mr. Lee Kye-In, Chairman of Posco International - a company with a project to produce 2.3 million tons of steel in Vietnam - said that it has successfully participated in the Mong Duong 1 thermal power plant project. Posco is also preparing to invest in the Quynh Lap LNG thermal power project in Nghe An (capacity of 1,500 MW), making a significant contribution to the development of the locality. The group also wants to participate in rare earth projects in Vietnam.
Prime Minister Pham Minh Chinh emphasized promoting new cooperation between businesses of the two countries.
NORTH JAPAN
A Korean shipbuilding giant, Hyundai Mipo, said it is investing heavily in this field in Vietnam. According to Mr. Kim Hyung-Kwan, CEO of Hyundai Mipo, this company is applying technology, especially green technology, to help the shipbuilding industry become more sustainable. Hyundai Mipo also wants to extend the land use period of Vinashin's shipyard by 20 years. At the same time, it hopes that the Government will improve infrastructure and upgrade energy so that ships can use new generation fuels such as LNG. Informing large Korean enterprises in the infrastructure and energy sector, Minister of Industry and Trade Nguyen Hong Dien said that in 2023, the Prime Minister approved 4 national energy plans and is continuing to perfect policy mechanisms. "Energy is a potential sector of Vietnam with the demand for power capacity doubling at present by 2030 with about 150,000 MW, and by 2050 it will be 8 times the current capacity. The current demand for energy attraction is extremely large," Minister Dien affirmed. To facilitate investors, the Government and the Prime Minister have directed 6 solutions, including a competitive electricity retail mechanism; from July 1, the direct electricity purchase and sale mechanism will take effect. In addition, continue to perfect the rooftop solar power mechanism; review and adjust updated electricity prices...
Promoting "new horizons of cooperation"
Regarding the proposal of Korean financial enterprises wishing to participate in the equitization process of Vietnamese enterprises, especially in the banking sector, Finance Minister Ho Duc Phoc said that the Vietnamese Government has always been consistent in its policy of equality between domestic and foreign enterprises in all economic sectors, including equitization. Mr. Phoc also cited the success of Korean securities companies in Vietnam. The Vietnamese stock market is growing rapidly, about 15% per year, with market capitalization accounting for about 75% of GDP.
"We will together promote new cooperation horizons on the basis of comprehensive cooperation between Vietnam and Korea in the future, striving for a trade turnover of 100 billion USD by 2025." - Prime Minister Pham Minh Chinh
Wishing Korean investors to participate in the securities sector, according to Minister Phoc, the Korean group Hana has successfully invested in BIDV and BIDV's securities company. "We will take note of the opinions of businesses and will promptly remove difficulties, as well as design policies on taxes and customs, creating favorable conditions for businesses," said Minister Phoc. Deputy Governor of the State Bank Pham Thanh Ha also affirmed that the common view is to create conditions for both Vietnamese and foreign banks. The Korean banking system is relatively open compared to Vietnam, and the fact that Korean banks have expanded many branches in Vietnam shows their efficiency in operations. Informing more about the leaders of large Korean enterprises, Prime Minister Pham Minh Chinh said that as a maritime country with a developed maritime economy, Vietnam has a great demand for the shipbuilding industry. Welcoming businesses to cooperate in building shipyards in Vietnam with different ship sizes, the Prime Minister also suggested that Korean businesses participate in the inland waterway sector in the Mekong Delta.
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