This is the statement made by Minister of Finance Ho Duc Phoc at the Investment Promotion Conference in South Korea with the theme “Vietnam – Investment Destination” held in Seoul, South Korea on March 7, 2024.
The conference attracted nearly 300 businesses from South Korea and Vietnam, including financial institutions, banks, investment funds, securities companies, and businesses from both countries.
 Minister of Finance Ho Duc Phoc speaking at the conference
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Recognizing achievements in economic growth
In his welcome speech at the conference, Kim Yong Jae, Standing Member of the Financial Supervisory Commission of South Korea (FSC), stated that since the establishment of diplomatic relations in 1992, Vietnam and South Korea have become indispensable partners in all fields. Currently, there are around 9,000 South Korean businesses operating in Vietnam, and South Korea has become the largest investor in Vietnam. The two countries also rank among the top 3 trading partners of each other.
In the financial sector, Vietnam is the second country in the world where South Korean financial institutions, including banks, insurance companies, and securities firms, are present, with a total of 46 organizations.
“Vietnam has achieved remarkable economic growth over a long period of time. The average annual growth rate of Vietnam in the past 20 years is 6.29%, and recently Vietnam has recorded high economic growth rates amidst a global economic slowdown. I believe this economic growth is the result of the efforts of the Vietnamese government and people, combined with the decisive investment of international businesses,” said Kim Yong Jae.
Vietnam is an attractive investment destination
In his speech at the conference, Minister of Finance Ho Duc Phoc welcomed the delegates, businesses, and investors attending the Investment Promotion Conference in South Korea.
“The participation of numerous businesses and investors is a clear testament to the efforts of the Vietnamese government in creating a favorable and attractive investment and business environment for foreign businesses and investors, especially those from South Korea. I believe this conference will open up even greater opportunities for cooperation and prosperous development between the two countries, as well as between businesses and investors from both countries, especially in the financial market,” said Minister Ho Duc Phoc.
The Minister also emphasized that in the course of more than 30 years of establishing diplomatic relations, the Vietnam – South Korea relationship has made remarkable progress with important milestones, from Comprehensive Partner in 2001 to Strategic Partner in 2009, and Comprehensive Strategic Partner in 2022.
In 2023, economic, trade, and investment relations between Vietnam and South Korea continued to develop positively.
Vietnam is South Korea’s 3rd largest trading partner, with a bilateral trade turnover of nearly 80 billion USD in 2023, of which South Korea had a trade surplus of 27.55 billion USD. The total investment capital from South Korea into Vietnam has reached about 90 billion USD, making South Korea the top investor in Vietnam with 9,863 projects and over 8,000 South Korean businesses operating in Vietnam. In 2023, Vietnam also welcomed more than 3.5 million South Korean tourists and currently has about 180,000 South Koreans living and working in Vietnam.
“We can fully trust the goal of increasing the bilateral trade turnover to 150 billion USD by 2030 in a balanced and sustainable manner,” Minister Ho Duc Phoc expressed his confidence.
To achieve this goal, within its supervision scope, the Ministry of Finance of Vietnam yearly cooperates with the South Korean Embassy to organize policy dialogue conferences in the financial sector to exchange, listen, resolve difficulties, and provide the most favorable conditions for South Korean businesses and investors in Vietnam.
At the conference, Minister Ho Duc Phoc further informed that in recent years, despite being heavily impacted by the global economic recession, Vietnam’s economy has maintained good growth momentum and has been a bright spot in attracting direct and indirect capital inflows globally. In 2023, major economic balances in Vietnam continued to be stable, with impressive figures: Vietnam’s GDP grew by 5.05%, and it is expected to achieve about 6-6.5% growth in 2024. Vietnam’s per capita GDP reached 4,284.5 USD, an increase of 160 USD compared to 2022.
Compared to other economies in the world, Vietnam has effectively controlled inflation, with a modest increase of 3.25%, lower than the target of 4.5%.
Reputable international organizations have recognized the achievements and prospects of Vietnam’s economy. Fitch Ratings upgraded Vietnam’s long-term national credit rating to BB+ (from BB), with a “Stable” outlook, and Vietnam is one of only two out of 62 countries in Asia-Pacific that were upgraded. By the end of 2023, public debt accounted for about 37% of GDP, much lower than the ceiling of 60% set by the National Assembly.
The Ministry of Finance delegation attending the signing ceremony of MOU between SSC and the Investment Association of South Korea
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Vietnam is determined to upgrade the securities market
Regarding the Vietnam financial market, Minister Ho Duc Phoc affirmed that the Vietnamese government attaches great importance and closely directs efforts to consolidate and promptly address difficulties and obstacles in order to achieve stable, healthy, and sustainable development goals.
In particular, for the stock market, although it is still relatively young, it has been growing at a relatively fast pace. The Vietnam stock market has played an active role as an important long-term capital channel for the economy and an attractive investment destination for domestic and foreign investors. The market structure and legal framework continue to be improved.
As of the end of February 2024, the market capitalization of stocks reached nearly 270 billion USD, equivalent to nearly 63% of GDP. The entire market has over 1,600 listed and registered stocks, certificates, and funds. The number of investors has grown rapidly, reaching 7.4 million securities accounts, equivalent to 7.2% of the population, surpassing the set target.
Most recently, at the 2024 Stock Market Development Conference held on February 28, Prime Minister Pham Minh Chinh affirmed: “Vietnam will continue to develop a transparent, open, safe, efficient, comprehensive, integrated, and sustainable stock market, ensuring the legitimate rights and interests of participating entities. The government is determined to upgrade the Vietnam stock market from a frontier market to an emerging market, with the spirit of ‘saying is doing, commitment is implementation, having measurable products and results to attract strong investment flows both domestically and internationally’.”
“I hope that after this conference, businesses from both countries will have more ideas and new cooperation projects to deepen economic cooperation, as well as the comprehensive strategic partnership between Vietnam and South Korea. The Ministry of Finance of Vietnam, on our part, is committed to accompanying and facilitating the search of opportunities for investment and cooperation by our partners, businesses, and investors from both countries to achieve the highest efficiency. We welcome South Korean businesses and investors to increase new investments and expand investment scales in Vietnam, to further enhance the effectiveness of cooperation and investment, and together achieve success and triumph,” emphasized Minister Ho Duc Phoc.
