PM urges Korean businesses to expand investments in key areas

Việt Nam has always encouraged Korean businesses to expand investment cooperation in areas where the RoK has strengths and Việt Nam has high demand, said Prime Minister Phạm Minh Chính, emphasising that even more investment would be welcomed.

Prime Minister Phạm Minh Chính delivers a speech at the forum. - VNA/VNS Photo

The country has put a priority in sectors such as technology, electronics, semiconductors and artificial intelligence (AI), along with infrastructure construction, renewable energy and new energies, biotechnology, innovation, high-quality human resource training and cultural industry, said the Prime Minister.

Prime Minister Chính was speaking at a Vietnam-Republic of Korea (RoK) Business Forum in Seoul on Monday, held as part of his official visit to the RoK. The forum attracted 500 delegates from ministries, sectors, agencies and companies from both countries.

PM Chính emphasised that after establishing diplomatic relations for more than three decades, the bilateral relationship is now at its best. The friendly, trustworthy and practical cooperation between Việt Nam and the RoK has been developing fruitfully on the basis of sharing common values and strategic interests.

Currently, the RoK holds the prime position in direct investment in Việt Nam, and is second in terms of development cooperation and tourism, and third in labour and trade cooperations. There are about 300,000 Vietnamese people working, studying and living in the RoK, while the Korean community in Việt Nam numbers around 200,000.

PM Chính said that in addition to the two countries’ long-lasting relations and their governments’ support, the business communities of Việt Nam and the RoK have also greatly contributed to the achievements.

PM Chính said that Việt Nam-RoK relations were at a "mature" stage after more than 30 years.

Bilateral relations were developing well in all fields but were particularly positive in economic, trade and investment terms, a bright spot and an important pillar in the relationship between the two countries.

In 2023, two-way trade turnover will reach US$76 billion. RoK is Việt Nam's third largest trading partner (after only China and the United States), Việt Nam's third largest export market (after the United States and China) and Việt Nam's second largest import market (after China).

PM Pham Minh Chinh and delegates at the forum - photo: VNA/VNS

According to the government leader, Việt Nam knows that the foreign-investment plays a key role in its economy. Việt Nam wants to attract selective foreign investments, connect the foreign direct investment (FDI) sector and domestic economic sector, promote public-private partnerships to develop the green economy, digital economy, circular economy and knowledge-based economy.

Chính also called on Korean businesses to continue supporting Việt Nam in finance, infrastructure development, institutional improvement, high-quality human resources training and governance, along with joining in social security activities and assisting people with difficult circumstances and those affected by natural disasters as well as local residents in remote, border and island areas.

The PM also hoped that Korean businesses will help Vietnamese enterprises to better participate in value chains of Korean firms and the world.

The relationship between South Korea and Việt Nam has become closer than ever, spanning 32 years.

PM Chính emphasised Việt Nam's commitment to improving its business investment environment through a comprehensive approach. This includes enhancing competitiveness and implementing three strategic breakthroughs: institutional improvement, infrastructure development and human resource training supported by science, technology and innovation.

Administrative reform, particularly in simplifying procedures, is a key focus. The Government aims to refine policies and mechanisms to alleviate barriers in production and business operations, thereby reducing compliance and logistics costs. The overarching goal is to create a more favourable environment for both citizens and businesses.

The Prime Minister reassured the forum that Việt Nam provides a secure setting for investment and business operations, highlighting political and social stability, safety and fairness in business dealings. Despite challenges, the emphasis remains on identifying and collectively resolving issues to foster growth and development.

Vietnamese and RoK companies will make greater contributions to the relations between the two countries, serving the growth of both countries and bringing about a better life for the people.

Also speaking at the forum, Korean Minister of Trade, Industry and Energy, Ahn Duk-geun, emphasised that the two countries are entering an important new phase.

The minister stated the need to prepare for the next 30 years of the Korea-Việt Nam relationship. It aims to continue reaching $100 billion in trade turnover by 2025 and $150 billion by 2030, expanding the scope of cooperation, including large-scale infrastructure projects, establishing a stable supply network, including for mineral resources as well as promoting cooperation on climate change response and energy conversion. In addition, RoK will offer support for Việt Nam's nuclear power research and development

At the conference the PM also witnessed the exchanges of 23 cooperation agreements between ministries, agencies, localities and businesses of the two countries in the fields of investment, trade, energy transition, biotechnology, industrial park construction, the semiconductor industry, medicine and pharmacy, aviation, logistics, information technology and mechanical engineering.