Vietnam and South Korea expect bilateral trade to soar to $100 billion in 2023 from $78.1 billion last year, then to $150 billion by 2030, the Vietnamese government said.
The economic goals were agreed during a telephone call between Vietnamese Prime Minister Pham Minh Chinh and his Korean counterpart Han Duck-soo late on Tuesday, according to the Vietnamese government portal.
A significant economic partner to Vietnam, South Korea is also a leading source of foreign direct investment (FDI). Korean giant Samsung Group has to date channeled more than $20 billion into the Southeast Asia country, 28 times higher than its initial commitment.
The sum includes another $841 million licensed on June 27 for Samsung Electronics HCMC CE Complex in Ho Chi Minh City. The facility is Samsung Electronics Co.’s second largest manufacturing site worldwide for TV screens and home electronics, after the largest in Mexico.
Vietnam has solidified its position as the biggest production base of Samsung Electronics globally, with about 60% of Samsung smartphones made in the nation currently.
During their Tuesday talks, the Korean and Vietnamese government heads agreed to seek ways to narrow the gap in bilateral trade, the portal said.
The two Asian economies’ 2021 two-way trade value of $78.1 billion increased by 18.3% from 2020, according to Vietnamese customs figures. Of this, Vietnam’s shipments were worth $21.9 billion and imports valued at $56.2 billion, resulting in a trade deficit of more than $34 billion. The main imports include electronics, machinery, metals, plastics, fabrics, and fuels.
Vietnam encourages Korean businesses to expand investment in Vietnam, with priority given to digital technology, electronics, renewable energy, infrastructure development and other development areas, the government portal said.