President Yoon Suk-yeol's visit is seen as a significant development and a stepping stone for Vietnam and South Korea to pursue their ambition of achieving a trade turnover of 150 billion USD by 2030.
Meeting with the Vietnamese and South Korean business communities on the sidelines of his state visit to Vietnam last weekend, President Yoon Suk-yeol emphasized the need to "restore trade momentum" and "deepen horizontal cooperation between the two countries." He said this is the most urgent task at this time due to the global economic downturn.
According to the South Korean president, the answer to overcoming the crisis can be found in Vietnam – a center for supply chain restructuring and an emerging consumer market.
Trade cooperation between the two countries is also moving towards new sectors such as innovation, digital transformation, and high technology, in addition to traditional fields.
During his visit to Samsung's R&D center before concluding his trip to Vietnam, President Yoon stated that the two countries are key partners in research and development, according to the Korea Herald. He emphasized the importance of the bilateral relationship and pledged support for collaborative research efforts between the two sides, aiming to create value by combining the technological strengths of both South Korea and Vietnam.
The President of South Korea held a dialogue with 50 Vietnamese and Korean digital talents on the morning of June 24. Photo: VGP
Choi Sang-mok, Senior Advisor on Economic Affairs to the President's Office, viewed Yoon's visit as a significant development and a stepping stone for the two countries to pursue their ambition of achieving $150 billion in trade by 2030.
Last year, bilateral trade between the two countries reached $87.7 billion, making Vietnam South Korea's third-largest trading partner after China and the United States. Meanwhile, South Korea has also solidified its position as Vietnam's leading source of foreign direct investment.
During his trip accompanying President Yoon Suk-yeol, Mr. Chey Tea-won, Chairman of SK Group and Chairman of the Korea Chamber of Commerce and Industry (KCCI), also affirmed that Vietnam is considered a leading manufacturing hub and that they are betting their future on this market.
"Vietnam is the best place to invest due to its stability and efficiency in a complex geopolitical context," said the chairman of several chaebol (large family-owned conglomerates in South Korea).
Samsung Electronics Chairman Lee Jea-yong (left) and Hyundai Motor Chairman Chung Eui-sun (right) attend the Korea-Vietnam Business Forum on June 23. Photo: Yonhap
During President Yoon's visit, 111 Memorandums of Understanding (MOUs) were also signed between businesses of the two countries. Of these, 54 were in the fields of defense, consumer goods, healthcare, and food; 28 agreements concerned establishing supply chains and future cooperation; and the remainder related to technology.
The areas of agreement also fall within the group of investment areas of interest to Vietnam, such as innovation, digital transformation, and high technology. During his meeting with businesses, Prime Minister Pham Minh Chinh also clearly stated his request for Korean businesses to continue increasing investment in these areas. "I hope Korean businesses will continue to make breakthroughs so that together we can achieve results three to four times greater in the coming years," he said.
Attending these bilateral business meetings, Mr. Nguyen Anh Duc, General Director of Saigon Co.op and Chairman of the Vietnam Retailers Association, said this is a golden opportunity for cooperation, standing on the shoulders of giants. He noted the importance of leveraging South Korea's advanced technology and bringing goods to the global market. However, he also acknowledged that opportunities always come with challenges, requiring domestic businesses to be well-prepared, otherwise they risk losing their autonomy in their own market.
Besides the business collaborations between the two countries, at the macro level, Vietnamese and South Korean ministries and agencies have also signed several notable agreements, laying the groundwork for long-term cooperation.
The Vietnamese Ministry of Industry and Trade and the Korean Ministry of Trade, Industry and Energy have signed an MOU to establish Korea Plus in Vietnam and Vietnam Plus in Korea. This unit aims to monitor and promote the goal of expanding bilateral trade to US$150 billion by 2030.
"The two countries agreed to strengthen public-private consultation channels to address difficulties in import and export and the operations of Korean companies in Vietnam," the Korea Times quoted the country's foreign trade agency as saying.
Regarding supply chain cooperation, to leverage Vietnam's abundant resources and South Korea's high value-added technologies, the two sides will establish a Vietnam-Korea Key Mineral Supply Chain Center. Cooperation in exploration, research, and training between the two sides will help process Vietnam's key minerals into high value-added products. Conversely, South Korea will be assured of a stable and long-term supply chain.
In addition, the establishment of joint ventures between companies from the two countries will also be supported to build a stable and diversified supply chain.
Since establishing diplomatic relations in 1992, economic relations between Vietnam and South Korea have developed rapidly. The economic relationship between the two countries is also considered to extend beyond cooperation and trade agreements.
Duc Minh
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