Vietnam and South Korea agreed on Friday to make joint efforts to almost double bilateral trade to $150 billion by 2030 and deepen their multi-faceted cooperation.
Three memorandums of understanding (MoUs) on stronger bilateral industry relationships were signed after a summit between South Korean President Yoon Suk Yeol and his Vietnamese counterpart Vo Van Thuong in Hanoi, according to South Korea’s Ministry of Trade, Industry and Energy.
The Vietnamese and South Korean trade ministries agreed to set up a "PLUS" task force of the respective nation, to be led by director-level officials, which will be in charge of exchanging information on trade and industry circumstances, helping address problems their companies face, and exploring new business opportunities.
The two nations held a major business forum later in the day, with the participation of Vietnamese Prime Minister Pham Minh Chinh and the South Korean President, who is on a three-day state visit to Vietnam starting Thursday. Yoon is being accompanied by a 205-strong Korean business mission.
The major delegation includes Samsung Electronics executive chairman Lee Jae-yong, SK Group chairman Chey Tae-won, Hyundai Motor Group executive chairman Euisun Chung, LG Group chairman Koo Kwang-mo, Lotte Group chairman Shin Dong-bin, and other top Korean business figures.
The forum was held for the governments and companies of the two countries to forge stronger partnerships and explore more business opportunities.
A total of 109 MoUs and two contracts were signed during the forum on technology development, investment, and supply chains in a wide range of industries, including defense, electric vehicles, nuclear power generation, travel, food and bio fields, according to South Korea’s Ministry of Trade, Industry and Energy.
Top Korean business figures said at the event that they consider Vietnam a production hub.
Hyosung Group chairman Cho Hyun Joo said Hyosung wants to make Vietnam a hub for its sustainable growth. Cho added his group has invested $3.5 billion in Vietnam, with presence in Hanoi, Ho Chi Minh City, and the southern provinces of Dong Nai, Ba Ria-Vung Tau with more than 9,000 employees in total.
Cho said the group, a leading power transformer manufacturer, wants to develop major high-technology projects and expand to information technology in Vietnam, and has plans to take in 10,000 more workers.
LG Group chairman Koo told the forum that LG has selected Vietnam as a large-scale production base. It started investing in Vietnam in 1995 and will continue to increase its investment capital.
LG said last December it had plans to channel another $4 billion into Vietnam, where it has invested about $5.3 billion by the end of 2022.
SK Group chairman Chey said Vietnam is a promising market for growth. SK continues to scale up in the country, including $1.3 billion planned for renewable energy.
Small and medium-sized enterprises from Korea also want to promote investment in this market, home to 100 million people. A Federation of Korean Industry representative said FKI sees Vietnam as a strategic partner and wants to promote cooperation in such fields as high technology and semiconducting.
Cha Yol Koo, president of the Korea International Trade Association (KITA), suggested the two countries should boost cooperation in exploring mineral resources, such as rare earths. He added the Korean business community in Vietnam expects the Vietnamese government to make appropriate adjustments to taxes, regulations and policies to help them operate stably in the country.
Vietnam’s Prime Minister Chinh said around 9,000 Korean companies are present in the Vietnamese market with total investment capital of up to $82 billion. Based on this, bilateral trade ties will further grow.
Chinh said he expected Korean businesses to grow more strongly and think about more investments in entertainment and culture.
As for proposals from the Korean business community, the Vietnamese PM pledged that the government would work out suitable measures based on real conditions.
As part of the business forum, the Export-Import Bank of Korea (Korea Eximbank) signed an MoU with Vietnam’s VinaCapital Group and Korean company GS Energy to finance an LNG-to-power project worth more than $3 billion in southern Vietnam’s Long An province. A joint venture between VinaCapital and GS Energy will develop the 3-gigawatt complex.