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ChineseThe Korea Trade-Investment Promotion Agency (KOTRA) aims to lay the groundwork for cooperation with Vietnam in sectors such as energy, environment, healthcare, and smart agriculture.
Expanding Trade Promotion Activities
On July 16, KOTRA, under the Ministry of Trade, Industry, and Energy of South Korea (MOTIE), hosted the "2024 Vietnam-Korea Plus Partnership Week" in Ho Chi Minh City. The event comes as bilateral relations between Vietnam and South Korea were upgraded to a "Comprehensive Strategic Partnership" following high-level agreements during the Vietnamese President's state visit to South Korea in December 2022.
Focusing on smart and environmentally friendly industries like energy, environment, healthcare, and smart agriculture, KOTRA is fostering the foundation for future Vietnam-South Korea economic cooperation. Lee Ji Hyung, Director of Economic and Trade Cooperation at KOTRA, stated that this year's Partnership Week includes key activities such as B2B trade matchmaking for smart industry enterprises, conferences introducing promising ODA (Official Development Assistance) and PPP (Public-Private Partnership) projects in southern Vietnam, and more.
The B2B matchmaking activities for the smart industry attracted over 70 South Korean businesses and approximately 150 Vietnamese enterprises, including those from northern and central provinces. On July 17, a conference presenting ODA and PPP projects in southern Vietnam was held. Six project investors, including government agencies and state organizations in Ho Chi Minh City and neighboring provinces, introduced dozens of projects of interest to South Korean contractors and investors. Notable participants included major corporations such as Dohwa Engineering, Hyundai E&C, Kumho E&C, Posco E&C, Samsung (Samsung SDS, Samsung E&A), and Taihan Cable & Solution.
Enhancing the Investment Environment
Vietnam and South Korea have established diverse cooperation frameworks, spanning multiple sectors and levels, including multilateral and bilateral mechanisms such as the Asia-Pacific Economic Cooperation (APEC), Asia-Europe Meeting (ASEM), Mekong-Korea Cooperation, ASEAN-Korea Cooperation, ASEAN+3, ASEAN Regional Forum (ARF), East Asia Summit (EAS), and various Vietnam-Korea dialogues in diplomacy, security, and defense.
Do Nhat Hoang, Director of Vietnam's Foreign Investment Agency, highlighted that economic, trade, and investment cooperation are cornerstones of bilateral relations. South Korea remains Vietnam's largest foreign direct investment (FDI) partner, the second-largest bilateral ODA provider, and the third-largest trade partner.
As of June 2024, South Korea’s cumulative FDI in Vietnam reached nearly $87.5 billion across over 10,000 projects, with the manufacturing and processing industries accounting for three-quarters of the registered capital and nearly half of the projects.
In development cooperation, Vietnam continues to be a priority recipient of South Korea’s ODA, representing about 20% of its total aid. Key areas for ODA include urban transport infrastructure, education and training, environment, clean energy, and IT. In June 2023, the two countries signed a $2 billion cooperation agreement for 2023-2030, focusing on large-scale infrastructure and transportation projects. By the end of 2023, South Korea’s grant aid to Vietnam through KOICA totaled approximately $600 million, while concessional loans through the EDCF amounted to nearly $2.6 billion.
Impressive Trade Growth
Bilateral trade has grown dramatically from $500 million in 1992, the first year of diplomatic relations, to $87 billion in 2022 and $76 billion in 2023. In the first half of 2024 alone, trade reached nearly $39 billion. Both nations are targeting $150 billion in trade turnover by 2030.
Additionally, since the post-COVID-19 period in 2022, South Korea has surpassed China as the leading source of tourists to Vietnam and is the third-largest market for Vietnamese labor exports.
"To attract FDI, Vietnam has consistently maintained macroeconomic stability, reformed its institutions, improved the investment environment, and enhanced infrastructure. Vietnam also prioritizes foreign investments that link with domestic enterprises to foster mutual growth," noted Do Nhat Hoang.
For any questions or comments, please contact:
OTIS AND PARTNERS LAW FIRM
Office address: 2nd Floor, CT3 Building, Yen Hoa Park View Urban Area, No. 3 Vu Pham Ham Street, Yen Hoa Ward, Cau Giay District, Hanoi
Email: [email protected]
Hotline: (+84)987748111
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