Korean conglomerates interested in expanding investments in Việt Nam

July 03, 2024 - 14:19
Major corporations want to expand investments in Việt Nam. During meetings with Prime Minister Phạm Minh Chính on July 3 in Seoul, leaders of many Korean businesses such as CJ, POSCO, Daewoo E&C and LG Display, expressed their desire to increase their operations.
Prime Minister Pham Minh Chinh receives Sohn Kyung-shik, Chairman of CJ Group. — VNA Photos Dương Giang

HÀ NỘI — Prime Minister Phạm Minh Chính met with leaders of several Korean conglomerates in Seoul on Wednesday (July 3), with the businesses all expressing their desire to expand investments in Việt Nam.

In a meeting with Chairman of CJ Group Sohn Kyung-shik, PM Chính learned about the company’s diverse multinational operations in food, biotechnology, retail and culture. CJ entered the Vietnamese market in 1998 and currently operates 24 subsidiaries in the country with a 2023 revenue of US$1.4 billion.

Sohn said the group intends to continue channelling capital into Việt Nam, particularly in food exports, logistics and cultural industries.

PM Chính encouraged the company to expand its investment in Việt Nam and to consider the country a strategic market, particularly in the areas of food processing, entertainment services and biotechnology. He also called on CJ Group to integrate more Vietnamese goods into its global supply chain.

Chính recommended the company increase its exchange of expertise and training programmes to assist Vietnamese farmers in livestock development, emphasising the need to establish quality standards and traceability systems for livestock products, and to facilitate the exchange of livestock experts between the two countries.

The PM assured that the Vietnamese government will support CJ Group in investing, building and developing projects in Việt Nam effectively and successfully, contributing to the country's goals of green growth and sustainable development.

Prime Minister Phạm Minh Chính receives Chairman of POSCO Holdings Chang In-hwa.

Also meeting the PM, CEO of POSCO Holdings Chang In-hwa who said that the Korean firm, specialising in steel, energy and electric vehicle battery materials, has already established four branches in Việt Nam with a total investment capital of $1.8 billion. POSCO is interested in converting its dedicated port in the Southeast Asian nation into a commercial one and hopes to receive the greenlight to invest in an LNG power plant in the country.

Highlighting Việt Nam’s focus on high-value industries like semiconductors, AI, big data and biotechnology, the PM said the Government welcomes the conglomerate’s investments that utilise modern technology, ensure environmental protection and align with Việt Nam's development plans and priorities.

At their meeting, Chairman & CEO of the Korea Development Bank (KDB) Kang Seog-hoon told PM Chính it plans to increase investments in Việt Nam in strategic sectors such as high-tech industries, innovation, infrastructure and green growth. With a network in 25 countries, the Korean state-owned policy bank has supported Korean conglomerates investing in Việt Nam and collaborated with the Vietnamese Ministry of Finance to assist the Vietnam Development Bank (VDB) in developing its sustainable strategies.

The Government leader encouraged KDB to continue supporting Korean enterprises’ operations in Việt Nam and providing credit support for Vietnamese SMEs, particularly in green finance, infrastructure and high technology.

Prime Minister Phạm Minh Chính receives Jeong Cheol-dong, President/CEO at LG Display Co Ltd.

At his reception for CEO of LG Display Jeong Cheol-dong, PM Chinh praised the company's effectiveness and substantial investments in Việt Nam, totalling over $5 billion so far.

He urged them to enhance the localisation of its products in the country to include more Vietnamese firms in its supply chain, and establish R&D centres.

The Vietnamese Government is committed to providing stable electricity, quality manpower and incentives for LG's projects, he stated.

Jeong told PM Chính that LG wants to step up its investment in Việt Nam in both traditional and new areas.

Hosting a reception for Chairman of Daewoo E&C and Chairman of the Korea Housing Builders Association Jung Won Ju, PM Chính highlighted thatinvestment in new urban areas will be a long-term strategy of Việt Nam. He asked the corporation to engage in green urban development projects in the country, join social welfare activities and contribute to promoting the cooperation between Việt Nam and the RoK.

Kim, for his part, said his enterprise established its representative office in Việt Nam in June 1991 and the Daewoo E&C Vina in 2017 with a total investment of $1.3 billion.

The company has operated in the areas of investment and development of many projects in the country, with the Starlake new urban area in Hà Nội being a standout, he said, adding Daewoo E&C Vina is planning to build a second urban area in Thái Bình province.

At a working session with President and CEO at GS E&C Huh Yoon-hong, PM Chính acknowledged the group’s contributions to as well as successful investment and business activities in Việt Nam and encouraged its plan to invest in Vietnamese high-tech start-ups.

Việt Nam is completing a master plan for HCM Minh City and legal regulations related to site clearance, infrastructure investment and realty, which he said is a good condition for the group to roll out its projects there.

PM Chính said the Vietnamese Government will accompany and support the group to effectively branch out its realty and infrastructure development projects, helping Việt Nam firm up its green growth and sustainable development goals.

He also expressed his hope that it will join social welfare work in Việt Nam, including poverty alleviation and removal of temporary housing.

According to Huh, GS E&C has 24 branches and representative offices in 18 countries, has run the key business areas of investment, construction of new urban areas, civil infrastructure, petrochemical refinery plants, hospitals and schools and environmental pollution treatment plants.

In addition to the projects being carried out in Việt Nam such as Nhà Bè new urban area, Long Bình and Thủ Thiêm urban areas and Bến Thành – Suối Tiên metro line, the group wants to engage in the others on developing smart urban areas, with the key being an IT area for the semiconductor sector and high-tech startups.

The Vietnamese Government leader also had a working session with Vice Chairman and CEO of Celltrion Inc Kim Hi Hyoung, during which he spoke highly of the group’s effective business in the biopharmaceuticals in the RoK, as well as its contributions to COVID-19 treatment medicine production.

Pharmaceuticals is a priority for development in Việt Nam, which has a technology and high-quality human resources shortfall, he said, adding he welcomed Celltrion’s plan to cooperate and transfer technology to the Vietnam Pharmaceutical Corporation (Vinapharm).

The Vietnamese Government supports and stands ready to create a favourable legal corridor for both domestic and foreign firms, including Celltrion, to carry out business in an effective, successful and sustainable manner in the country, he said.

Kim said the Southeast Asian region has huge potential for the development of the biopharmaceuticals and the corporation wants to establish a branch in Việt Nam. It is willing to support Vinapharm in technology transfer and production links, while also wishing to promote its products in Việt Nam via the distribution system of Vinapharm. — VNS