Vietnam-S Korea $150 bln trade target feasible by 2030: Kocham

Vietnam and South Korea's target of increasing bilateral trade turnover to $100 billion by 2025 and $150 billion by 2030 is completely feasible, according to Choi Bundo, chairman of the Korean Chamber of Commerce in Vietnam (Kocham).

Bilateral trade value is constantly increasing, from $2 billion in 2000 to $79.4 billion in 2023. Both countries are each other's third largest trade partners.

Bundo said he highly appreciated Prime Minister Pham Minh Chinh's visit to South Korea from June 30 to July 3, saying it had been a success.

The visit helped to promote the business activities of 10,000 South Korean enterprises in Vietnam, and facilitated the establishment of industrial complexes investing in new energy and renewable industries, cutting-edge technology, and artificial intelligence, he told the government's news portal in an interview.

During the visit, the prime minister and the Vietnamese business delegation met with representatives of major South Korean corporations such as Samsung, Hyundai, and LG.

Promoting business activities

Vietnam has introduced policies such as reducing value added tax and extending tax payment deadlines for companies facing difficulties due to the global economic recession. In addition, to promote the tourism industry, the country has officially waived visas for 45 days for citizens of some countries entering Vietnam under visa exemption regulations, said Bundo.

In particular, Vietnam has made efforts to increase transparency in administrative procedures for investment licensing and institutional regulations in many other fields by applying online registration procedures on the National Public Service Portal. These measures help positively promote investors' business activities in Vietnam. The country has successfully signed and implemented 16 free trade agreements with bilateral and multilateral trade partners, including the Vietnam-South Korea Free Trade Agreement (VKFTA), he added.

The chairman expressed his hope that, in the context of South Korean investors expanding their business activities in Vietnam, Vietnamese authorities will further strengthen institutional support following changes in the investment environment, such as investment licensing applications within the framework of the agreement signed between the two countries that need to be resolved more actively and quickly.

In addition, Vietnam needs to strengthen the reform of work permit procedures for young Korean workers who want to stay in Vietnam to work, temporary residence cards, customs procedures, and value added tax refund regulations.

According to Bundo, many South Korean businesses are looking to Vietnam to expand their investments in industries related to new energy and renewable energy. Kocham has about 500 members operating in the textile, footwear, and handbag industries.

He said he hoped that the Vietnamese government will proactively strengthen measures to support the process of granting necessary licenses for South Korean businesses to implement green transformation projects according to international market requirements.

South Korea is a leading investor in Vietnam, with total accumulated registered capital of $87 billion. In the first half of this year, direct investment from South Korea increased 15.8% year-on-year to reach $1.41 billion, ranking fourth among 84 economies investing in Vietnam.

From Jan-May, bilateral trade rose 8.9% year-on-year to $32 billion, with Vietnam incurring a deficit of $11.5 billion, up 5.5%, according to the Ministry of Industry and Trade.