During his official visit to the RoK from June 30 to July 3, Prime Minister Pham Minh Chinh attended the Vietnam-RoK Business Forum, held by the Ministry of Trade, Industry, and Energy of the RoK and the Korea Chamber of Commerce and Industry (KCCI), in collaboration with the Ministry of Planning and Investment of Vietnam and Vietnamese Embassy in the RoK.
Dozens of cooperation agreements signed
At the event, Prime Minister Pham Minh Chinh and representatives of ministries and sectors from both sides signed 23 cooperation agreements between Vietnamese localities, units, and enterprises, and their RoK partners in fields including investment, trade, energy transition, biotechnology, industrial park construction, semiconductor technology, pharmaceuticals, aviation, logistics, information technology, and mechanics.
In particular, Sovico Group and Hyosung Group aim to promote cooperation on research, investment, and sustainable development, and to develop and invest in data centres, financial technology, renewable energy, finance, smart cities, logistics, and other real estate business fields. The Vietnam Pharmaceutical Corporation (Vinapharm) and Celltrion Pharmaceutical Group signed a memorandum of understanding to establish a company to produce biopharmaceutical and pharmaceutical products in Vietnam, for the Vietnamese market and other markets. Additionally, MHGroup Joint Stock Company and UNISCAN Co., Ltd. signed a memorandum of understanding worth up to 600 million USD within five years.
Notably, at the forum, the Bac Ninh Provincial People's Committee awarded an adjusted investment certificate for a project to produce, assemble, and test semiconductor materials and equipment for investor Amkor Technology Singapore Holding PTE.LTD at Yen Phong II-C Industrial Park, with an additional capital of over 1.07 billion USD. In addition, the Bac Ninh Provincial People's Committee also signed a memorandum of understanding with the Korea Land & Housing Corporation, on the development of the Southeast urban area of Bac Ninh City in the province of the same name, continuing the urban growth partnership programme based on the cooperation between the governments of the RoK and Vietnam.
Assessing the recent capital flow from the RoK into Vietnam, Vice Chairman of the Korea Chamber of Commerce in Vietnam (Korcham) Hong Sun, said that the challenging global economic outlook, with prolonged conflict between Russia and Ukraine and high inflation, especially in Europe and the US, etc., have made Korean investors cautious when seeking investment opportunities in Vietnam.
Especially, with the upgrade of relations to a comprehensive strategic partnership in 2022, Vietnam-RoK investment cooperation has entered a new era, marked by an explosion of projects in supply chain development and high technology.
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People are interested in the RoK’s consumer products at an exhibition on industrial goods. (Photo: NAM HAI) |
Opportunities to increase FDI inflows into Vietnam
According to Hong Sun, PM Pham Minh Chinh’s official visit to the RoK held significant importance, as it presented a valuable opportunity for both sides to exchange opinions and discuss key issues in promoting investment and trade relations, especially in resolving difficulties and obstacles to create favourable conditions for foreign businesses, including the RoK enterprises, to invest and operate in Vietnam. Notably, the Prime Minister also hosted meetings with leaders of several leading economic conglomerates in the RoK, which have already made substantial investments in Vietnam and are preparing expansion plans in various fields.
During his meeting with the Prime Minister, Shin Dong-bin, Chairman of Lotte Group, stated that Lotte began its business investment in Vietnam in 1996, and the Group's revenue in Vietnam had reached 6.7 billion USD by 2018. Furthermore, Lotte commenced the construction of the Thu Thiem Smart City in September 2022 and is investing in the Lotte Mall Tay Ho complex project in Hanoi. "We believe that Vietnam will continue to grow strongly, becoming a highlight of the global economy, and the two countries will develop a 'win-win' economic relationship. Therefore, we look forward to opportunities to invest in large-scale projects in Vietnam."
Meanwhile, Lee Jae Yong, Chairman of Samsung Group, mentioned that Samsung currently has 310 Vietnamese companies as partners in its production chain. Additionally, Samsung employs 2,500 engineers and researchers at its Research and Development (R&D) Centre in Hanoi, including a department for artificial intelligence research in languages other than Vietnamese.
Lee Jae Yong affirmed, that as the largest foreign investor and the largest exporter in Vietnam, Samsung is committed to accompanying Vietnam in sustainable development, in the spirit of "harmonised interests, shared risks", that Prime Minister Pham Minh Chinh has frequently mentioned. "Samsung plans to make significant investments in the next three years to turn its factory in Vietnam into the largest display module production hub of the group worldwide."
Similarly, Cho Hyun-joon, Chairman of Hyosung Group, noted that since 2007, the Group has invested nearly 5.1 billion USD in Vietnam, with eight companies and one branch. To date, the Group's total workforce in Vietnam is approximately 9,000 employees, with 2023 revenue reaching 3.5 billion USD. Chairman Cho Hyun-joon emphasised that Hyosung places its future over the next 100 years in Vietnam, with a data centre in Ho Chi Minh City, utilising the most modern and advanced technologies.
Regarding Vietnam, Prime Minister Pham Minh Chinh affirmed that Vietnam always welcomes and desires leading RoK corporations to continue expanding investment and cooperation, based on a "global, comprehensive, and people-centred" approach, aiming for a bilateral trade turnover of 100 billion USD by 2025 and 150 billion USD by 2030.
“Vietnam always encourages Korean enterprises to expand investment cooperation in areas of the RoK’s strengths and of Vietnam’s high demand and priority, especially in important and emerging fields, such as the digital economy, green economy, circular economy, sharing economy, and emerging industries like semiconductors, artificial intelligence, hydrogen, and cultural-entertainment industries”, noted the Prime Minister.
He also expressed his desire and confidence that with a spirit of mutual listening and understanding, shared vision and action, mutual efforts and benefits, mutual victory and development, and "harmonised interests, shared risks”, Vietnamese and RoK investors and enterprises will make greater contributions to the bilateral relationship and the development of both countries, as well as the increasingly improved lives of the people from both nations.
At the same time, the Prime Minister instructed Vietnam’s ministries, sectors, and localities to seriously consider the opinions and recommendations on attracting investment, improving the business environment, and enhancing competitiveness, towards creatively and effectively applying the insights into Vietnam’s development practices. "The Vietnamese Government is committed to always listening, accompanying, supporting, and creating all favourable conditions for foreign investors in general, and the RoK investors in particular, to conduct business in Vietnam in a convenient, effective and sustainable manner”, added the Prime Minister.
