MB committed to supporting South Korean businesses

Earlier this month, during Prime Minister Pham Minh Chinh's official visit to South Korea, nearly 350 Korean businesses and 180 Vietnamese companies, along with leaders from various ministries, attended the Vietnam-Korea Business Forum.

At the forum, participants were briefed on Vietnam's development landscape, strengths, investment priorities, and the status of Vietnam-Korea relations. Discussions centred around investment and trade opportunities, the advantages of Korean businesses, and prospects in the Vietnamese market.

Be friends first, then do business

As one of the four keynote speakers, Thai delivered a presentation on Digital Transformation in the Financial Industry, focusing on macroeconomics, green economy, and circular economy. He emphasised two key factors for successful cooperation.

"First, trust and collaboration are crucial, as the Korean saying goes, 'be friends first, then do business.' Second, developing a value business chain is essential, especially with the shift of production from China to other countries. We are ready to cooperate and identify reliable partners from Vietnam," he said

In an interview with The Korea Herald on July 2 in Seoul, Thai highlighted the importance of providing tailored services to Korean personnel living and working in Vietnam.

This, he noted, would help South Korean businesses operate more effectively in Vietnam. Consequently, starting from August 2024, MB will introduce Korean language support on its banking app to offer a more convenient experience for the South Korean community in Vietnam.

"Vietnamese banks have not yet provided specialised services for Koreans living in Vietnam, forcing them to rely on branches of Korean banks. Recognising the increasing number of Korean citizens and companies entering Vietnam, MB will launch banking services in South Korean from August to better cater to the South Korean community," Thai said.

The collaboration between MB and South Korean businesses is expected to strengthen the bilateral relationship between Vietnam and South Korea. This partnership is anticipated to bring substantial value to both parties and reinforce the positive diplomatic ties between the two nations.

In July 2023, Vietnam and South Korea celebrated 30 years of diplomatic relations and signed a free trade agreement (FTA), further promoting strong and comprehensive cooperation across various sectors, including politics, economy, investment, and high technology.

Luu Trung Thai, chairman of MB

Strategic partnership between MB and Posco International

At the forum, under the witness of PM Chinh, MB and Posco International signed a strategic cooperation agreement. The Prime Minister, along with senior Vietnamese leaders and an MB delegation led by the bank's chairman Luu Trung Thai, also held an in-depth meeting with the chairman of Posco Group.

PM Chinh praised the group's investment activities in Vietnam, highlighting the effective operations of its subsidiaries. He welcomed its plans to expand its investments and operations in Vietnam, particularly in green development, promoting a circular economy and digital economy.

"Posco's effective operations and their plans for green development and a circular economy are highly commendable," said Chinh. "We look forward to their continued investment in Vietnam's burgeoning digital economy."

During the meeting, In Hwa Chang, CEO of Posco, highlighted that the company is among the top five companies in South Korea in steel, energy, trade, and electric vehicle battery materials.

"In 2023, our revenue reached $59 billion," said Chang.

"In Vietnam, we have established four steel branches with a total investment of $1.8 billion. We aim to expand our cooperation and investment in new sectors in Vietnam, including converting our specialised port into a commercial port and investing in an LNG power plant.”

Meanwhile, Thai of MB said that the strategic cooperation with Posco not only demonstrated MB's ability to collaborate with major South Korean companies but also opened up numerous opportunities for investment and business collaboration for MB and its partners.

"This partnership highlights our capacity to attract and work with leading Korean firms, paving the way for future business ventures," he said.

In a separate interview with the press, Vu Thanh Trung, vice chairman of MB, discussed the bank's strategy to support Korean enterprises investing in Vietnam.

"Providing comprehensive products and services to ensure the success of foreign invested enterprises, particularly South Korean businesses, is crucial to MB's business policy," Trung said.

"To ensure the success of Korean companies in Vietnam, MB has developed a wide range of products, services, and advanced digital platforms to help businesses manage their investments effectively. Our robust digital applications and platforms, equipped with cutting-edge technology, allow businesses to oversee their investment activities comprehensively. Detailed reporting and analysis systems are fully integrated into these digital platforms."

MB also aims to collaborate with Korean financial institutions to expand the QR payment system in Vietnam.

"If we can link the upcoming MBBank app for Koreans with Korean banks, Koreans in Vietnam will be able to use our QR payment system through their banking apps. We are actively seeking partners for this initiative," Trung added.

Vietnam still a magnet for South Korean investors Vietnam remains a magnet for major South Korean investors, and a basis for them to reach out globally, nearly 10 years after a major free trade deal between the pair materialised.

South Korean groups invited to expand further in Vietnam Vietnam is set to welcome bigger investments from South Korea following an official visit by a Vietnamese top leader to this East Asian nation, where both countries have made fresh commitments to boost their trade and investment ties.