PM urges Korean businesses to boost connectivity with Vietnamese firms

PM Pham Minh Chinh greets representatives of the RoK's associations and businesses at the dialogue in Hanoi on July 30. (Photo: VNA)

Hanoi – Prime Minister Pham Minh Chinh has called on the Republic of Korea (RoK)’s enterprises to increase investment in Vietnam and boost connectivity with local firms so that Vietnam can soon become a hub in regional and global value chains.

He made the appeal while addressing a dialogue with the RoK’s Ambassador Park Noh-wan and representatives of Korean associations and businesses in Hanoi on July 30.

The RoK, the largest FDI partner in Vietnam at present, is investing in 9,383 projects worth over 79.8 billion USD in 19 of the 21 economic sectors and 59 of the 63 localities nationwide. Vietnam is also the RoK’s biggest economic partner in ASEAN, with 30% of the RoK investment in the bloc channelled into Vietnam.

Besides, the Northeast Asian country is the third largest trade partner of Vietnam, following China and the US. Bilateral trade is equivalent to 50% of the RoK’s total trade with ASEAN, the PM noted.

The RoK is a leading partner of Vietnam in most areas while Vietnam plays an important role in ASEAN and East Asia, he stressed, adding that investing in Vietnam also means accessing the ASEAN market with a combined population of over 600 million. The two sides are working to ratify the Regional Comprehensive Economic Partnership (RCEP) and striving for 100 billion USD in bilateral trade by 2023 and 150 billion USD by 2030.

The Party and State of Vietnam always create the best possible conditions for Korean enterprises, as well as those from around the world, to make long-term investment in the spirit of equality, common development, mutual benefit and social responsibility, he affirmed.

PM Chinh said Vietnam hopes to welcome more cooperation and investment projects from the RoK in the areas related to high technology, innovation, research and development such as digital technology, electronics, renewable energy and infrastructure development.

He voiced his hope that Korean businesses will strengthen connectivity with and help Vietnamese firms take part in supply chains to help Vietnam soon become a hub in regional and global value chains.

Regarding trade, he asked for increasing policy dialogue under the Vietnam - Korea Free Trade Agreement (VKFTA), resolving trade imbalance, and creating conditions for Vietnam’s strong exports like agricultural and fishery products to enter the Korean market.

In terms of industrial development, the PM said a priority of Vietnam is to develop industries with high technological content, especially key technologies of the Fourth Industrial Revolution, while attracting investment into the manufacturing sector so as to make a breakthrough in forming new production capacity linked with science - technology, innovation, and digital transformation, which are also the fields the RoK is strong at.

He also recommended stronger cooperation in energy development, noting that Vietnam is encouraging the development of clean and renewable energy to realise the commitments made at the 26th UN Climate Change Conference (COP26).

At the dialogue, the RoK Ambassador and the Korean business community in Vietnam presented 33 proposals to Vietnam's ministries, sectors, agencies and localities.

The proposals are related to tax incentives, power planning and electricity market, incentives for investment in renewable energy, pandemic response, procedures in various business and labour matters, along with difficulties in the implementation of certain projects.