Vietnam-South Korea investment and cooperation strengthened

Deputy Prime Minister Le Minh Khai and Deputy Minister of Planning and Investment Tran Quoc Phuong

On March 10, 2023, in Hanoi, the second ministerial dialogue on economic cooperation between Vietnam and South Korea took place under the co-chairing of Vietnamese Deputy Prime Minister Le Minh Khai, and South Korean Deputy Prime Minister Kyungho Choo.

DPM Khai said that after more than 30 years of diplomatic relations, the cooperation between the two countries has seen remarkable development in many fields.

At present, South Korea is the leading foreign investor in Vietnam with the total accumulated investment capital of $81.3 billion; ranking second in development cooperation, tourism, labour ($3.75 billion); and ranking third in trade value ($86.4 billion. They have carried out various cooperation activities in the fields of finance - banking, infrastructure, transportation, IT, science and technology, agriculture, forestry and fishery, education and training, and culture.

"The two countries are also important partners with active contributions to regional and international forums and multilateral cooperation frameworks," DPM Khai said.

He also said that the international and regional situation was complicated and unpredictable. "A scientific and technological revolution is taking place at an unprecedented speed and is an inevitable trend that forces countries to grasp and act if they do not want to be left behind. This requires us to be wise to take the right steps and decisions, to enable the two economies to keep up with the general developments of the world and region," he said.

South Korean Deputy Prime Minister Choo Kyungho

South Korean DPM Kyungho confirmed that the favourable conditions of investment in Vietnam had attracted South Korean investors. They have contributed significantly to the development of Vietnam, as well as maintaining the leading position of South Korean investors in the Asean country.

"Going forward, the Korean government will continue cooperating with the Vietnamese government to help South Korean businesses expand their investment in Vietnam, especially in building eco-friendly infrastructure; clean energy development; finance; agriculture; medical; digital, and cultural sectors," said DPM Kyungho. "Vietnam is a global manufacturing hub with a favourable investment environment and an abundant young workforce. So, large South Korean enterprises investing in Vietnam have built their value chains in the region."

However, in the context of global volatility, the governments of the two countries should cooperate for sustainable development, expanding their supply chains and cooperation, while finding out opportunities to improve bilateral cooperation.

DPM Kyungho said that South Korea would like to accompany Vietnam in the context of significant changes all over the world. "The combination of Vietnam's potential and Korea's sci-tech will help the two countries develop sustainably," he said.

Strengthening Vietnam-South Korea investment and cooperation

At the meeting, Deputy Minister of Planning and Investment Tran Quoc Phuong presented Vietnam's official development assistance (ODA) policy and South Korea's priority areas for using ODA.

He emphasised enhancing cooperation between South Korea and Vietnam using the Economic Development Promotion Fund, discussing the use of syndicated capital from the Economic Development Cooperation Fund and Economic Development Promotion Fund.

The Vietnamese government has also approved the policy to attract, manage and use ODA and concessional loans of foreign donors for the 2021-2025 period.

The two countries have proposed, discussed, and agreed on cooperation contents in five fields: trade; energy and infrastructure construction; development cooperation; IT - communication and investment; health and labour.

The two DPMs signing the minutes of the meeting

After the meeting, the two DPMs agreed to carry on exporting goods to each other based on Vietnam-South Korea Free Trade Agreement to the target of $100 billion this year, and $150 billion by 2030.

The two sides pointed out solutions to remove obstacles that South Korean investors are facing in Vietnam, as well as boost South Korean investment into prioritised sectors of Vietnam like ICT, green energy, infrastructure, smart urban, and logistics.

The two DPMs signed the minutes of the second deputy prime minister's dialogue on economic cooperation between Vietnam and South Korea, and witnessed the signing of the Loan Agreement for the renovation project of Hoa Duyet - Thanh Luyen, and Hanoi - Ho Chi Minh City Railway.

Previously, in December 2022, the two countries levelled up the relationship to a Comprehensive Strategic Partnership.

Vietnam-South Korea forum takes peek at upcoming trade prospects Based on the 30-year journey of companionship between the two countries since the establishment of diplomatic relations, the Vietnam-South Korea Economic Cooperation Forum opened up opportunities for leaders and businesses of the two sides to discuss cooperation in the coming years.

Trade between Vietnam and Korea surges by $9 billion According to the Ministry of Industry and Trade (MoIT), bilateral trade between Vietnam and South Korea in 2022 exceeded about $87 billion, nearly $9 billion more than the previous year's total of $78.1 billion.