Korean firms eye Vietnam's AI, energy growth
The Hanoi Times -- Vietnam is actively addressing legal challenges, including many issues raised by South Korean businesses.
South Korean firms are looking to increase investment in artificial intelligence (AI), semiconductors, and green energy, supporting Vietnam's emergence as a global investment hub while driving sustainable economic growth and innovation.
Ko Tae Yeon, Chairman of the Korean Business Association in Vietnam (KoCham), made the statement on March 4 at a dialogue chaired by Prime Minister Pham Minh Chinh and attended by 35 major South Korean companies including Samsung, LG, SK, Hyundai Thanh Cong, Hyosung, CJ, and Lotte.
Prime Minister Pham Minh Chinh and South Korean businesses at the event. Photos: VGP
At the event, South Korean companies presented investment opportunities and proposals in various sectors, including semiconductors and high technology (Samsung, LG, Hana Mircon Vina), green energy (SK, Hanwha, Asong), high-tech industries such as automotive, LNG and electric vehicle batteries (Hyundai Thanh Cong, Posco), biotechnology and advanced materials (Hyosung), and services and logistics (CJ, Lotte).
Na Ki Hong, CEO of Samsung Vietnam, said that countries see the development of the semiconductor and AI industries as directly related to national security.
"They are preparing various support policies at the government level," he said, stressing that Vietnam is also following this trend and is considering various incentive mechanisms, including the development of the Law on Digital Technology Industry, which is being drafted by the Ministry of Science and Technology.
Samsung and many foreign investors are interested in this issue, Na Ki Hong said.
The CEO of Samsung Vietnam also urged the government to prioritize incentive mechanisms to allow high-tech enterprises to make investment decisions with confidence.
KoCham Chairman Ko Tae Yeon emphasized Vietnam's important position and role in global supply chains, as well as its strong cooperation with South Korea. According to a recent survey conducted by KoCham, 82% of South Korean businesses believe that the Vietnamese government responds effectively to external fluctuations. These businesses express confidence in Vietnam's diplomatic capabilities and FDI support policies in the coming period.
He hoped that South Korean companies would participate in Vietnam's major projects, such as the North-South high-speed railway and nuclear energy initiatives, especially in design, production, and training of personnel.
Last year, South Korean companies invested US$7 billion in Vietnam, an increase of 37.5% from 2023. This brought the cumulative FDI from South Korea to $92 billion. About 10,000 South Korean companies operate in Vietnam, creating more than 900,000 jobs and contributing significantly to the country's socio-economic development.
KoCham has joined several companies in calling for increased policy support for high-tech industries, investment funds, simplified import-export procedures, modernized logistics systems, and improved import taxes and VAT refunds.
At the event, Prime Minister Pham Minh Chinh said that Vietnam is actively addressing legal challenges, including many issues raised by South Korean companies.
Prime Minister Pham Minh Chinh delivers his speech.
He emphasized the importance of developing strategic infrastructure in transportation, logistics, energy, digital and social sectors to meet growing economic demands while ensuring sustainable development and climate resilience.
The Prime Minister affirmed that to make it easier for international investors, including those from South Korea, to successfully develop and invest in Vietnam, the Vietnamese Government is committed to improving the investment and business environment.
Chinh encouraged South Korean investors to work closely with the Vietnamese government and local businesses to increase investment in new technologies, high-tech sectors, and clean industries.
He also called on companies to share their expertise to strengthen the startup ecosystem by supporting venture capital funds, connecting startups from both countries, working with Vietnam's innovation centers, and establishing research and development (R&D) centers.
In particular, the Prime Minister highlighted strategic areas such as innovation, the semiconductor industry, AI, renewable energy, digital finance, biotechnology, smart manufacturing, and the digital economy - areas where both sides have considerable potential for mutual support and long-term development.
