Vietnam, Korean firms see high potential for collaboration in IT/semiconductors: survey

Semiconductors is one of the most promising areas for future cooperation between Vietnamese and Korean firms. (Photo: VNA)

Seoul – Entrepreneurs of Vietnam and the Republic of Korea (RoK) have defined information technology and semiconductors as the most promising areas for future economic cooperation between the two countries, according to a recent survey conducted by the Korea Chamber of Commerce and Industry (KCCI).

The survey results were released to business leaders on August 1. The survey was carried out directly at the RoK - Vietnam Business Forum held on July 1 as part of Vietnamese Prime Minister Pham Minh Chinh’s visit to the RoK.

Accordingly, following IT and semiconductors, 22.3 per cent of Korean firms selected green energy as the second most promising area, while 20.4 per cent of Vietnamese respondents chose finance and fintech.

Regarding sectors offering the highest value in the current bilateral economic cooperation, 45.5 per cent of Korean and 42.6 per cent of Vietnamese businesses defined “electrical and electronics” as the leading field.

The RoK side also ranked distribution-logistics, apparel-textiles, and automotive-steel-metals at 11.6 per cent, 11.1 per cent, 10.6 per cent, respectively. Meanwhile, machinery and equipment were selected by 17.6 per cent of participating Vietnamese companies, followed by apparel-textiles, with 16.2 per cent.

The survey also showed that 42.3 per cent and 29.1 per cent of Korean companies saw the expansion of investment, trade, and supply chain stability as positive impacts of the Vietnam-RoK economic cooperation on their national economies. Meanwhile, 41.2 per cent of Vietnamese firms chose job creation and 27.9 per cent mentioned industrial restructuring.

When asked about the benefits of the collaboration for their companies, the RoK side selected reduced production costs (39.7 per cent), supply chain stability (25.9 per cent), and new business opportunities and market expansion (21.2 per cent). Meanwhile, 35.3 per cent of Vietnamese groups highlighted technology development as the greatest benefit.

The KCCI noted that Korean companies invest in Vietnam to reduce costs and stabilise their supply chains, with expectations to further expand investment and trade at the national level. On the other hand, Vietnamese firms hope to enhance domestic industrial structure by improving technological capabilities and exploring new business activities through collaboration with Korean partners.

Regarding the governments' focus for broadening economic cooperation, Korean businesses expressed a desire for the Vietnamese government to expand investment incentives (39.2 per cent) and ease restrictive regulations (32.8 per cent). Vietnamese enterprises, meanwhile, suggested that the Korean government should widen opportunities for finding business partners (44.1 per cent) and expand investment incentives (22.1 per cent).

KCCI Vice Chairman Park Il-joon stated that based on more detailed results of future surveys, the chamber plans to connect with its office in Vietnam and relevant agencies to explore specific projects aimed at stepping up economic engagement between the two countries.

South Korea to invest $7 billion in AI by 2027 South Korea will invest almost $7 billion in artificial intelligence by 2027 in an effort to become a global leader in cutting-edge semiconductors, President Yoon Suk Yeol said Tuesday.

A strengthened high-tech workforce for semiconductors Vietnam has plenty of work to do if it wants to become a true global hub for semiconductor manufacturing. Dr. Quan Le, principal investigator for the Semiconductor Workforce Development Research Grant under Fulbright University Vietnam, covered the potential for Vietnam and how to reach it with VIR’s Vy Vy.

Vietnam welcomes Indian interest in hi-tech and semiconductor sectors The Vietnamese government opens its arms to Indian entrepreneurs and businesses to invest in high-technology, semiconductors, and digital technology, according to Deputy Minister of Information and Communications Bui Hoang Phuong.

Inflows picking up the pace for semiconductors Semiconductors are heating up foreign investment inflows into Vietnam, and capturing a larger proportion of the total.

Appetite for high-growth stocks linked to semiconductors, AI and digital assets Investors are scouting for high-growth stocks related to semiconductors and AI as well as acquiring digital assets, heard a recent panel discussion about investment opportunities in H2.

The microchip allure for big players Vietnam boasts some strategic advantages that can lure some of the biggest economies to invest in its industrial hubs. Manager Ly Nguyen and associate Tu Nguyen of the Tony Blair Institute Vietnam pore over the investment preferences of European and the US investors in industrial parks for semiconductors.