Many Opportunities Open Up for Korean Enterprises

9:22:22 AM | 7/14/2021

The Vietnam - Korea Business Forum was recently co-organized by the Vietnam Chamber of Commerce and Industry (VCCI) and the Korea International Trade Association (KITA). The forum focused its discussions on telecommunications, information technology, energy, and educational cooperation, to promote further development of the Vietnam - Korea cooperation relationship.

Taking place in the context of the COVID-19 pandemic affecting the economy and business community, the forum shows the interest in business and investment cooperation between Vietnam and Korea.

Speaking at the event, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) Hoang Quang Phong emphasized, Korea has always been the most important partner of Vietnam. In 2020, Korea was Vietnam's third-largest trading partner with two-way trade turnover of US$66 billion. Specifically, Korea has always been the leader in foreign direct investment in Vietnam with the participation of the major Korean corporations. By the end of 2020, Korea had more than 8,900 valid projects in Vietnam, with a total registered investment capital of about US$70.65 billion, ranking first among 139 countries and territories investing in Vietnam in terms of both total registered investment capital and total investment projects in Vietnam.

The Vietnamese government has given many incentives and favorable conditions for foreign enterprises in Vietnam during the past years. Despite the difficulties caused by COVID-19, Vietnam is supporting experts from Korea and other countries (countries that have basically controlled COVID-19) to enter Vietnam to ensure the normal operation of factories and FDI projects in Vietnam.

VCCI Vice President Hoang Quang Phong said Vietnam will work tirelessly to institutionalize the essential movement of people and businesses while enhancing infrastructure development and connectivity in the region and expressed the belief that with the bilateral efforts, the bilateral cooperation will become stronger with many encouraging results.

“We hope that the two sides can further strengthen online business connection activities, contributing to maintaining and promoting the global supply chain; enhancing technology transfer and technical assistance from Korea in general industries in Vietnam, thereby creating competitiveness for Vietnamese enterprises," emphasized Vice President Hoang Quang Phong.

In response, former Korean Minister of Trade Bark Taeho said that many opportunities are opening up for Korean businesses in Vietnam. In particular, with the possession of many bilateral and multilateral FTAs ​​such as EVFTA, RCEP and CPTPP, and being one of the few economies with positive growth despite being affected by the COVID-19 pandemic, Vietnam promises to continue to be a high potential market for investors in the coming time.

Mr. Bark Taeho also added that many Korean companies are tending to move to Vietnam due to the advantages of labor as well as the impact of U.S.-China tensions. Therefore, the bilateral investment cooperation will have the potential to further expand and develop in many fields.

At the same time, toward the goal of bilateral trade turnover reaching US$100 billion by 2023, Mr. Bark Taeho said that the two sides need to work together to solve difficulties related to the goods distribution and transportation, build support programs to better connect and cooperate with small and medium enterprises.

“Korea will make efforts to support Vietnamese enterprises to develop human resources, especially in training skilled workers,” emphasized Mr. Bark Taeho.

Highly appreciating the views of Mr. Bark Taeho, Mr. Phong made some specific proposals to encourage and further promote business cooperation between Vietnam and Korea in the coming time. Specifically, it needs to promote the application of digital technology, focus on cooperation in the development of telecommunications infrastructure including mobile broadband infrastructure in Vietnam, and develop cooperation in e-commerce. In the field of energy, the two countries are requested to enhance information exchange and promote investment of Korean enterprises in the development of power plants and renewable energy. In education, the two countries need to further strengthen cooperation in student exchange, jointly develop teaching methods and advanced educational technology, applying the achievements of the industrial revolution 4.0 such as artificial intelligence and big data, especially in foreign language training, training high-tech workers according to the needs of Korean businesses in Vietnam. Besides, online business connection activities are hoped to strengthen, contributing to maintaining and promoting the global supply chain; enhancing technology transfer and technical assistance from Korea in general industries in Vietnam, thereby creating competitiveness for Vietnamese enterprises.

VCCI Vice President Hoang Quang Phong pledged that VCCI is ready to cooperate with the Korean business community for the development of bilateral trade and investment cooperation.

By Giang Tu, Vietnam Business Forum