Korea plans transfer of 167 technologies to Vietnam

illustration photo

The Department of Heavy Industry under the Ministry of Industry and Trade (MoIT) just published a list of 167 technologies to be transferred from South Korea to Vietnamese businesses as part of a co-operative framework for the supporting industries between the MoIT and its Korean counterpart the Korea Ministry of Commerce, Industry and Energy.

The technology transfer will include notable technologies such as processing antibacterial polyester, automatic variable transmissions for automobiles, and improving the capacity of substrate in microchips, to name only a few.

South Korea is one of Vietnam’s most important trade partners and investors. Over the last two decades, two-way turnover between the two countries has swelled from $500 million in 1992 to $27.3 billion in 2013.

Last year South Korea took the position of Vietnam’s third largest trading partner while Vietnam was Korea’s sixth largest importer. A highlight of the trade relations between Vietnam and Korea is the export-import structure, which is said to compliment both sides.

For instance, Korea exports machinery and equipment as well as raw textile and footwear materials to Vietnam, while it imports Vietnamese seafood, textiles, footwear, furniture and agricultural products.

The two countries are striving to reach the goal of completing the negotiation of a free trade agreement (FTA) by the end of 2014. This FTA is expected to help spur the bilateral trade turnover.

Over the last nine months Korea led foreign direct investment into Vietnam with thetotal committed capital of $3.6 billion. Experts have assessed that the country will retain its leading position as Vietnam’s leading foreign investor this year as Korean authorities have positively assessed Vietnam’s investment environment.