Vietnam encourages Korean enterprises to expand investment cooperation

Deputy Prime Minister Nguyen Hoa Binh affirmed that the Vietnamese Government always encourages Korean enterprises to expand investment cooperation in areas where Korea has strengths and Vietnam has high demand and priority, such as: high technology, electronics, semiconductors, artificial intelligence...

Permanent Deputy Prime Minister Nguyen Hoa Binh spoke at the event.

Together towards a common goal

Speaking at the Vietnam-Korea Investment Cooperation Forum 2024 on November 21, Permanent Deputy Prime Minister Nguyen Hoa Binh highly appreciated the achievements of cooperation between the two countries over the past three decades. He emphasized that the economic relationship between Vietnam and Korea has become an important pillar in diplomatic relations, opening up opportunities for deeper cooperation in areas such as high technology, trade, and investment.

The Deputy Prime Minister affirmed that Vietnam and the Republic of Korea are moving towards a common goal of building a comprehensive strategic relationship. Vietnam is currently the largest economic partner of the Republic of Korea in the ASEAN region and one of the three largest economic partners of the Republic of Korea globally. Developing cooperation in the fields of trade and investment has become a highlight of this relationship, with total bilateral trade turnover reaching over 87 billion USD and expected to exceed 100 billion USD in the coming years.

One of the important factors that helps enhance cooperation between the two countries is the active support from the two governments, as well as the strong participation of the business community. The Deputy Prime Minister said that Vietnam especially welcomes and encourages Korean enterprises to expand their investment in areas that Vietnam has high demand for, such as high technology, semiconductors, artificial intelligence (AI), renewable energy, and innovation.

In addition, the Deputy Prime Minister mentioned enhancing cooperation between small and medium-sized enterprises (SMEs) of the two countries as one of the strategic focuses. Korean SMEs have a lot of experience in developing and building global brands, and this will be a great opportunity for Vietnamese SMEs to increase their participation in the global value chain, especially in industries such as processing, manufacturing, and information technology.

Deputy Prime Minister Nguyen Hoa Binh also made strong commitments from the Vietnamese Government to ensure a favorable and stable investment environment for foreign investors, especially Korean enterprises. The Deputy Prime Minister put forward the principles of "3 guarantees" and "3 together" in the cooperative relationship between the two countries. These "3 guarantees" include: ensuring that the foreign-invested economic sector is always an important part of the Vietnamese economy; ensuring the legitimate rights and interests of investors; and ensuring political and policy stability. Along with that, Vietnam is committed to improving the investment environment, minimizing administrative procedures and creating a transparent and fair business environment.

Extensive cooperation between businesses of the two countries will contribute to the establishment of Research and Development (R&D) Centers in Vietnam. This will be an opportunity for Vietnam to become a strategic destination for high-tech research and development projects, especially in areas such as renewable energy, artificial intelligence, and biotechnology.

In addition, Vietnam also hopes to continue attracting Korean businesses to invest in industries with strong growth potential, such as new energy (hydrogen), infrastructure construction, and development of smart urban areas...

Permanent Deputy Prime Minister Nguyen Hoa Binh took a souvenir photo with the Organizing Committee and guests attending the Forum.

Many Korean businesses want to cooperate with Vietnamese businesses

Appreciating the Vietnam Association of Small and Medium Enterprises and the Korea Association of Small and Medium Enterprises for coordinating with the Ministry of Planning and Investment of Vietnam and the Ministry of SMEs and Startups of Korea to organize the Forum, the Permanent Deputy Prime Minister emphasized that in order to achieve success in the Vietnam-Korea cooperation relationship, in addition to the fundamental factor of the good friendship between the two countries and peoples, the support and attention of the two governments, it is necessary to mention the contribution and consensus of the business communities of both sides.

The Vietnamese Government highly appreciates the business activities and contributions of Korean enterprises in Vietnam, especially the recent strong shift from simple processing sectors to high-tech industries, energy projects, finance-banking, high-quality services... These will continue to be very potential opportunities to promote cooperation between the business communities of the two countries.

Sharing at the forum, Mr. Kim Ki Mun - Chairman of the Korean Small and Medium Enterprises Association 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.

This year, South 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 many other consumer goods industries have large export volumes in the world. "Expanding investment depends on many changes in the actual situation, however, at the present time, Korean businesses are very eager to invest in Vietnam. The cultural similarities between the two countries are a factor that makes Koreans very confident when investing in Vietnam," Mr. Kim Ki Mun informed.

According to Mr. Nguyen Van Than, Chairman of the Vietnam Association of Small and Medium Enterprises, the flow of Korean investment capital into Vietnam is very large. There are currently more than 10,000 Korean investors in Vietnam, 90% of which are small and medium enterprises, with a total capital of about 87 billion USD. However, in the opposite direction, there are still very few Vietnamese investors in Korea.

“First, Vietnam’s investment environment is more attractive than Korea’s. Second, the capacity of Vietnamese enterprises to invest in Korea is still weak. The Vietnam-Korea Investment Cooperation Forum wants to bring small and medium-sized enterprises of the two countries together. If we let private enterprises connect on their own, it will take a lot of time and effort,” Mr. Than explained.

The forum is not only an exchange event between businesses but also an opportunity for associations and businesses of the two countries to connect and seek long-term cooperation opportunities. According to Mr. Than, organizing such forums every year will help maintain and develop cooperative relationships, creating solid steps forward in promoting bilateral investment.

This year’s forum witnessed the signing of 14 cooperation documents between associations and enterprises of the two countries, the exhibition of products of nearly 30 enterprises, and networking activities for more than 500 delegates. These results are a testament to the strong and effective cooperation between the two countries, and at the same time create an important foundation to promote the investment relationship between Vietnam and Korea in the future.

Source: https://thoibaonganhang.vn/viet-nam-khuyen-khich-doanh-nghiep-han-quoc-mo-rong-hop-tac-dau-tu-158022.html