Vietnam – South Korea relations are built on high level of mutual trust, and the two countries share similarities in culture and history, according to South Korea Ambassador to Vietnam Kim Do Hyon.
Overview of the conference. Source: Ngoc Thuy.
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Meanwhile, the ongoing trade friction between the US and China has triggered an investment inflow to Vietnam, Kim stated, requiring Vietnam to have flexible economic and financial policies in place to grasp this opportunity.
Kim expected Vietnam to maintain supporting policies and create favorable conditions for foreign financial organizations investing in Vietnam.
The South Korean ambassador believed Vietnam has huge potential and advantages in fintech, and noted that South Korean companies are suitable partners for Vietnam in developing fintech and applying new technologies of the Fourth Industrial Revolution.
At the conference, Deputy Finance Minister Tran Xuan Ha said after 25 years of establishing diplomatic ties, the Vietnam-South Korea relations are growing strongly.
As of present, South Korea is Vietnam’s second largest trading partner, and Vietnam is South Korea’s fourth biggest one. Bilateral trade turnover in 2018 reached US$65.7 billion, of which Vietnam’s exports to Korea amounted to US$18.2 billion, up 22.8% year-on-year and imports US$47.5 billion, up 1% year-on-year.
Top investor
Notably, South Korea remained Vietnam’s top investor, posting annual registered capital of FDI in range of US$7 – US$9 billion over the last five years, Ha said.
According to Ha, South Korea is one of Vietnam’s major donors with total 55 loan agreements to date worth US$2 billion.
Ha informed more than 6,600 South Korean investors and six securities companies are participating in Vietnam’s stock market.
“South Korea remained top in terms of investment in Vietnam’s stock market,” said Ha.
In the insurance sector, companies such as Hanwha Life, Mirae, Samsung Vina, Seoul Guarantee, among others, have contributed positively to the development of Vietnam’s insurance market, Ha continued.
Vietnam is also an ideal investment destination for multinational companies, including South Korean conglomerates such as Samsung, LG or Lotte. Over the last 30 years, Vietnam has received 27,000 foreign invested projects with registered capital of over US$335 billion, of which US$185 billion has been disbursed.
“Foreign invested companies have become an indispensable part of Vietnam’s economy,” Ha stressed.
In the coming time, Vietnam continues to reforming legal framework and stabilizing macro-economy, while pushing forward with global economic integration, Ha added.
Nguyen Kim Anh, deputy governor of the State Bank of Vietnam (SBV), said South Korea has the most banks among others countries operating in Vietnam, consisting of two wholly-owned banks, eight foreign bank branches, six representative offices and two finance leasing companies.
Deputy Chairman of the National Financial Supervisory Commission Ha Huy Tuan urged South Korean investors to take advantage of Vietnam’s ongoing privatization process, banking sector’s restructuring, and the surge of fintech in Vietnam.
“Fintech is a viable option to realize financial inclusion in Vietnam, mainly thanks to the country’s young population, adequate internet infrastructure and growing middle-class,” Tuan said.
