PM urges Korean businesses to boost connectivity with Vietnamese firms

July 31, 2022 - 10:43
Prime Minister Phạm Minh Chính has called on the Republic of Korea (RoK)’s enterprises to increase investment in Việt Nam and boost connectivity with local firms so that Việt Nam can soon become a hub in regional and global value chains.
PM Phạm Minh Chính meets representatives of Korean associations and businesses in Việt Nam. — VNA/VNS Photo Dương Giang

HÀ NỘI — Prime Minister Phạm Minh Chính has called on enterprises in the Republic of Korea (RoK) to increase investment in Việt Nam and boost connectivity with local firms so that Việt Nam can soon become a hub in regional and global value chains.

He made the appeal while addressing a dialogue with the RoK’s Ambassador Park Noh-wan and representatives of Korean associations and businesses in Hà Nội on July 30.

The RoK, the largest FDI partner in Việt Nam at present, is investing in 9,383 projects worth over US$79.8 billion in 19 of the 21 economic sectors and 59 of the 63 localities nationwide. Việt Nam is also the RoK’s biggest economic partner in ASEAN, with 30 per cent of the RoK investment in the bloc channelled into Việt Nam.

Besides, the Northeast Asian country is the third largest trade partner of Việt Nam, following China and the US. Bilateral trade is equivalent to 50 per cent of the RoK’s total trade with ASEAN, the PM noted.

The RoK is a leading partner of Việt Nam in most areas while Việt Nam plays an important role in ASEAN and East Asia, he stressed, adding that investing in Việt Nam also means accessing the ASEAN market with a combined population of over 600 million. The two sides are working to ratify the Regional Comprehensive Economic Partnership (RCEP) and striving for $100 billion in bilateral trade by 2023 and $150 billion by 2030.

The Party and State of Việt Nam always create the best possible conditions for Korean enterprises, as well as those from around the world, to make long-term investments in the spirit of equality, common development, mutual benefit and social responsibility, he affirmed.

PM Chính said Việt Nam hopes to welcome more cooperation and investment projects from the RoK in the areas related to high technology, innovation, research and development such as digital technology, electronics, renewable energy and infrastructure development.

He voiced his hope that Korean businesses will strengthen connectivity with and help Vietnamese firms take part in supply chains to help Việt Nam soon become a hub in regional and global value chains.

Regarding trade, he asked for increasing policy dialogue under the Việt Nam - Korea Free Trade Agreement (VKFTA), resolving trade imbalance, and creating conditions for Việt Nam’s strong exports like agricultural and fishery products to enter the Korean market.

In terms of industrial development, the PM said a priority of Việt Nam is to develop industries with high technological content, especially key technologies of the Fourth Industrial Revolution, while attracting investment into the manufacturing sector so as to make a breakthrough in forming new production capacity linked with science - technology, innovation, and digital transformation, which are also the fields the RoK is strong in.

At the dialogue, he also recommended stronger cooperation in energy development, noting that Việt Nam is encouraging the development of clean and renewable energy to realise the commitments made at the 26th UN Climate Change Conference (COP26).

At the dialogue, the RoK Ambassador and the Korean business community in Việt Nam presented 33 proposals to Việt Nam's ministries, sectors, agencies and localities.

The proposals are related to tax incentives, power planning and electricity market, incentives for investment in renewable energy, pandemic response, procedures in various business and labour matters, along with difficulties in the implementation of some specific projects.

In September 2021, the PM held a dialogue with Korean businesses to learn about difficulties and obstacles facing them and also listen to their initiatives and proposals for institutional, policy and administrative procedure reforms in order to facilitate production and business activities.

So far, 25 of the 29 recommendations and proposals raised at that event have been handled, especially those related to COVID-19 prevention and control and business facilitation. Authorities of Việt Nam are working to deal with the four remaining, according to the Government leader.

Ambassador Park noted the dialogue last September has given more strength to companies that were struggling with the pandemic’s impacts, and they have received practical assistance.

He cited some economists as predicting that Việt Nam can easily attain a growth rate of at least 6 per cent this year, sustain macro-economic and exchange rate stability, and boost export - import growth even amid global economic uncertainties and disrupted global supply chains.

The diplomat attributed those achievements to the country’s stability and the Government’s effective governance, which is highly valued by the RoK Government and businesses. — VNS