Korean firms predict bright industrial future for Vietnam

LG is one of the most prominent South Korean brands in VietnamPhoto: Le Toan

Leaders of major South Korean industrial groups including Kumho Asiana, Lotte, Chamvit, Samsung and SK Telecom told Vietnam’s National Assembly Chairman Nguyen Sinh Hung, during his July 21-24 official visit to South Korea, that they would continue investing in Vietnam, and asked Vietnam to continue providing favourable investment incentives.

Samsung president Kim Jae-kwon said his group’s committed investment into Vietnam would turn the country into the world’s biggest maker of phones and cameras. Samsung has already invested $2.5 billion in a mobile phone manufacturing factory in Bac Ninh province and the electronics giant recently began construction on a $2 billion high-tech complex in Thai Nguyen province.

SK Telecom president Lee Suk-chae said his group had made good preparations for its investment in high-end resorts and hotels in Quang Ninh and Hoa Binh provinces.

Pledging Vietnam would create the best investment incentives for all foreign investors, Hung also proposed that they continue investing in Vietnam’s infrastructure, aviation, transportation, tyre manufacturing, construction and service sectors. He also asked them to improve workforce training and transfer new technologies to Vietnam.

During his meeting with Prime Minister Chung Hong-won, Hung proposed that the South Korean government further encourage and facilitate more enterprises to invest in Vietnam.

The two leaders agreed to boost negotiations on the Vietnam-South Korea Free Trade Agreement to raise bilateral trade turnover to $30 billion in 2015, up from over $21 billion last year. The leaders also agreed to further cement co-operation in economics, labour, culture, education and training, and tourism.

Hung and President Park Geun-hye agreed to continue the exchange of high-ranking delegations. Hye suggested the two sides make it easier for their enterprises to expand production and investment.

Hung and South Korea’s National Assembly Speaker Kang Chang-Hee agreed to further tighten legislative and juridical co-operation. To this end, the two sides also signed a co-operation deal between the two legislative bodies, and an agreement between the Vietnam National Assembly Office and South Korea National Assembly Secretariat.

Vietnam and South Korea forged a strategic partnership in 2009. South Korea is Vietnam’s fourth largest foreign investor, with more than 3,200 projects valued at over $25 billion. It is also Vietnam’s second largest bilateral donor of official development assistance (ODA), with over $200 million last year.

Last week also saw Hung’s official visit to Myanmar during July 24-26. He and Khin Aung Myint, Speaker of the Upper House of the Myanmar Parliament, agreed on strengthening co-operation in legislative, supervisory and diplomatic activities.

The leaders clinched a co-operation deal between the two legislative bodies, providing an important legal framework for bilateral activities.

Hung suggested to Myanmar’s President U Thein Sein that Vietnam wanted the Myanmar government to provide more favourable conditions to Vietnamese investors eyeing Myanmar’s telecommunications, ship building, minerals, finance and banking, agriculture and fishery sectors.

Sein said Myanmar wanted to further develop co-operation with Vietnam.

As of this June, 23 Vietnamese enterprises have been licensed for operation in Myanmar, largely focusing on finance and banking, industry, telecommunications, pharmaceuticals, property and hotel sectors. Five Vietnamese projects have been licensed in Myanmar, worth some $600 million.