Wide door for Vietnam to receive billions of dollars from South Korea

President Yoon Suk-yeol's visit is considered a significant development as well as a premise for Vietnam and South Korea to pursue the ambition of reaching a trade turnover of 150 billion USD by 2030.

Meeting with the Vietnamese and Korean business communities on the sidelines of his state visit to Vietnam last weekend, President Yoon Suk-yeol stressed the need to "restore trade momentum" and "deepen horizontal cooperation between the two countries." He said this was the most urgent task at the moment due to the global economic recession.

According to the South Korean President, the answer for the country to overcome 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 a visit to Samsung's R&D Center before concluding his visit to Vietnam, President Yoon said 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 to support research cooperation efforts between the two sides, aiming to create value by combining the technological strengths of both Korea and Vietnam.

South Korean President talks with 50 Vietnamese-Korean digital talents on the morning of June 24. Photo: VGP

Mr. Choi Sang-mok, Senior Economic Affairs Advisor of the Presidential Office, said that Mr. Yoon's visit is considered a significant development as well as a premise for the two countries to pursue the ambition of achieving trade turnover of 150 billion USD by 2030.

Last year, bilateral trade between the two countries was $87.7 billion, making Vietnam South Korea’s third-largest trading partner after China and the United States. Meanwhile, South Korea has also consolidated its position as Vietnam’s top source of foreign direct investment.

Mr. Chey Tea-won, Chairman of SK Group and Chairman of the Korea Chamber of Commerce and Industry (KCCI), during his trip accompanying President Yoon Suk-yeol, also affirmed that he considers Vietnam a leading production base and bets on the future in this market.

"Vietnam is the best place to invest thanks to its stability and efficiency in a complex geopolitical context," said the chairman of many chaebols (large family-owned corporations in Korea).

Samsung Electronics Chairman Lee Jae-yong (left) and Hyundai Motor Chairman Chung Eui-sun (right) attend the Korea-Vietnam Business Forum on June 23. Photo: Yonhap

111 memorandums of understanding (MOUs) were also signed during President Yoon’s visit. Of these, 54 were in the fields of defense, consumer goods, health care, and food; 28 were on establishing supply chains and future cooperation; and the rest were related to the technology sector.

The agreed fields are also among the investment groups that Vietnam is interested in, such as innovation, digital transformation, and high technology. Prime Minister Pham Minh Chinh, in a meeting with businesses, also made clear his request for Korean businesses to continue increasing their investment in these areas. "I hope Korean businesses will continue to make breakthroughs to achieve 3-4 times more results together in the coming years," he said.

Attending the business meetings between the two countries this time, Mr. Nguyen Anh Duc, General Director of Saigon Co.op, Chairman of the Vietnam Retailers Association, said that this is a golden opportunity for cooperation, standing on the shoulders of giants. In particular, he noted the need to take advantage of Korea's advanced technology as well as bring goods to the world. However, he also recognized that opportunities will always come with challenges, requiring domestic businesses to be well prepared or they will lose their autonomy at home.

Besides the business competition between the two countries, at the macro level, the ministries and branches of Vietnam and Korea also have some notable agreements, creating the premise for long-term cooperation.

The Vietnamese Ministry of Industry and Trade and the Korean Ministry of Trade, Industry and Energy have signed a Memorandum of Understanding (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 150 billion USD by 2030.

"The two countries agreed to strengthen public-private consultation channels to resolve difficulties in import-export and operations of Korean companies in Vietnam," Korea Times quoted the country's foreign trade agency as saying.

Regarding supply chain cooperation, to take advantage of Vietnam’s abundant resources and high value-added technologies from Korea, the two sides will establish the Vietnam-Korea Critical 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. In return, Korea will be guaranteed a stable and long-term supply chain.

In addition, the establishment of joint ventures between companies of the two countries will also be supported to build a stable and diversified supply chain.

Since the establishment of diplomatic relations in 1992, Vietnam-Korea economic relations have developed rapidly. The economic relationship between the two countries is also assessed to go beyond cooperation and trade agreements.

Duc Minh

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