DIALOGUE ON INVESTMENT PROMOTION BETWEEN KOREAN BUSINESSES AND AUTHORITIES IN SOUTH VIETNAM IN THE NEW NORMAL

On the afternoon of December 14, 2021 in Binh Duong, the Foreign Investment Agency – Ministry of Planning and Investment coordinated with the People’s Committee of Binh Duong province and the Consulate General of Korea in Ho Chi Minh City to organize a meeting ” Dialogue on Investment Promotion between Korean enterprises and Authorities in South Vietnam in the New Normal”. The dialogue was held both in person and online.

Attending the Dialogue as representatives of Vietnam included Mr. Do Nhat Hoang – Director of Foreign Investment Department; Mr. Vu Van Chung – Deputy Director of the Department of Foreign Investment; Ms. Tran Thi Hai Yen – Director of Investment Promotion Center – South Vietnam.

On the Korean side, there were the attendance of Mr. Kim Kwan Mook – General Director of Korea Trade – Investment Promotion Agency in Ho Chi Minh City (KOTRA); Mr. Son Young Il – Chairman of Korea Chamber of Commerce & Industry in Ho Chi Minh City(KOCHAM).

With presence of Heads of local Departments from the provinces of Binh Duong, Vinh Long, Ninh Thuan, and Ba Ria-Vung Tau, as well as representatives from Korean and Vietnamese enterprises.

In the opening remarks, Mr. Do Nhat Hoang – Director of the Foreign Investment Department – stated that since the establishment of diplomatic relations in 1992, the two countries have built many legal frameworks, including the Vietnam Free Trade Agreement – Korea (VKFTA), and both countries have been members of the Regional Comprehensive Economic Partnership (RCEP). These are the pillars upon which the two nations’ trade and investment relations will be formed in a mutually beneficial and complementary manner. Korea is Vietnam’s greatest investment partner, second largest tourism and bilateral development cooperation partner, and third largest economic partner, according to this basis.

On the one hand, Korea is the largest FDI partner in Vietnam as of November 20, 2021, with $74 billion registered to invest. The processing and manufacturing industries received the most investment, totaling up to 54 billion USD. On the other hand, Vietnam is Korea’s most important economic partner in ASEAN, accounting for 30% of Korean investment in the region.

Vietnam has been identified as a key partner in Korea’s New Policy, which aims to promote common prosperity, people, and peace. Vietnam values cooperation relations with Korea, particularly in the fields of economy, investment, and trade; considers the Korean business community as a key strategic partner in the process of economic restructuring, innovation, creativity, knowledge-based economy development, growth quality improvement, and national competitiveness.

As an governmental unit that supports and promotes foreign investment, the Department of Foreign Investment and Heads of localities are willing to openly discuss the topics that the investors take interest in and committing to accompany and support investors, and create favorable conditions for Korean investors to make successful, sustainable and long-term investments in Vietnam.

Mr. Kim Kwan Mook, General Director of the Korea Trade – Investment Promotion Agency in Ho Chi Minh City, shared at the seminar that the trade and investment relationship between the two countries, Vietnam and South Korea, has developed remarkably since the early 2000s, when Korean businesses began entering the Vietnamese market. Until now, large corporations such as Samsung and Hyosung, as well as approximately 8,000 Korean enterprises, have invested in Vietnam. Korea has currently risen to the top of the list of countries investing in Vietnam. Many businesses are currently undergoing difficulties as a result of the Covid-19 pandemic. However, thus far, the two countries’ trade and investment relationships have been formed and developed on the basis of mutual benefits. As a result, he anticipates that investment from Korean companies in Vietnam will continue to grow rapidly in the coming years. He also believes that today’s dialogue would enable Korean enterprises considering investing in Vietnam obtain a better insight of the investment environment in some of the country’s key southern regions in the light of a rapidly changing global business environment.

Representatives from Ninh Thuan, Binh Duong, and Vinh Long localities who attended the seminar all expressed a desire to assist in connecting and introducing Korean businesses and investors to explore investment opportunities in the province, particularly in industries and fields in which the locality excels; create favorable conditions for promoting local products into the Korean market; maintain and develop traditional friendship relations, and promote the province’s potentials. The provinces are committed to welcoming Korean investors seeking collaboration and creating all favorable conditions in terms of preferential policies as well as open and speedy investment procedures.

Mr. Vu Van Chung, Deputy Director of the Department of Foreign Investment, concluded the diaogue by saying, “The dialogue took place in a very meaningful context because the Chairman of the National Assembly and the Vietnamese Delegation is paying a visit to a Korea in a meantime.” The official visit to Korea marked an important milestone in the 30th anniversary of diplomatic relations, establishing a new framework for the future and generating new driving force to the two countries’ relations. The dialogue is also an ideal opportunity for us to discuss and propose solutions to encourage Korean investment in Vietnam, thereby contributing to the future development of economic relations between the two countries.

Trung tâm Xúc tiến đầu tư phía Nam

Phòng Thông tin Tư liệu