Vietnam considers S.Korean business community strategic partner for economic restructuring

Vietnam considers the South Korean business community a strategic partner for economic restructuring and innovation towards greater growth quality and national competitiveness, according to Deputy Prime Minister Trinh Dinh Dung.

Deputy Prime Minister Trinh Dinh Dung (r) and Joo Hyung-chul (l), chair of the Special Committee for South Korea’s New Southern Policy. Source: VGP

The future of the Vietnam – South Korea relations relies on vision, self-motivation and dynamism of two countries’ enterprises, Dung said at the Vietnam – South Korea business summit held on November 9 at the Chu Lai Economic Zone in the central province of Quang Nam.

The event was jointly chaired by Dung and Joo Hyung-chul, chair of the Special Committee for South Korea’s New Southern Policy, along with the attendance of over 250 major South Korean companies and Vietnamese peers.

Dung said the Vietnam – South Korea relationship is at its peak, thanks to the friendship and joint efforts from the two governments and citizens from each country.

South Korea remains Vietnam’s top investors with 8,190 projects with combined registered capital of US$65.7 billion, making significant contributions to Vietnam’s core economic sectors such as electronics, energy, automobile, construction, services, among others.

Additionally, South Korea is also one of Vietnam’s major trade partners with bilateral trade turnover of US$65.8 billion in 2018, and US$44 billion in the first eight months of 2019.

“Vietnam welcomes South Korea’s New Southern Policy with a focus on the people and peace that promotes prosperity, in which Vietnam is considered a key partner,” Dung said.

In the context of the Fourth Industrial Revolution, Vietnam is transforming itself into a digital economy and pushing for greater innovation and development of the business community.

Dung, however, acknowledged Vietnam needs to go a long path to become a modern and industrialized country.

“Vietnam wants to be an active player in the Industry 4.0 and hopes South Korean companies develop products of the IR4.0 in Vietnam,” Dung stressed.

According to Dung, Vietnam is aware of the importance of foreign investment to the country’s development. Therefore, the country is focusing on perfecting the legal framework and improving the infrastructure system and quality human resources, paving the way for mobilizing capital for development, particularly from foreign sources.

Vietnam expects to further improve the relations with South Korea by connecting advantages and potential from each country, while encouraging more investment in the fields of manufacturing, supporting industries, hi-tech farming, renewable energy, smart city, health, privatization of state-owned enterprises, among others.

In terms of trade, Vietnam looks for more balancing trade with the goal of taking bilateral trade to US$100 billion by 2020.