On March 07, 2024, in Seoul, the capital city of South Korea, the Ministry of Finance and the State Securities Commission hosted an investment promotion conference with the theme “Vietnam – An investment destination.” The Minister of Finance, Ho Duc Phoc, attended and presided over the conference.
AIMING TO RAISE BILATERAL TRADE TURNOVER TO $250 BILLION
In his opening remarks, Minister of Finance Ho Duc Phoc stated that after more than 30 years of establishing diplomatic relations, this year marks the second year Vietnam and South Korea have implemented the comprehensive strategic partnership.
It can be said that the relationship between Vietnam and South Korea is developing strong, substantive, and entering the best phase in history. The two countries have truly become each other’s top important partners.
The recent high-level exchanges between the leaders of the two countries have not only strengthened the political trust between the two countries but also greatly contributed to promoting cooperation in areas such as trade, investment, culture, tourism, people-to-people exchanges, and enhanced cooperation in international and regional forums on issues of mutual concern.
During the years, despite the challenges and difficulties of the global economy, Vietnam has emerged as a country with a solid and stable economic growth prospect, with controlled inflation. In 2023, the GDP growth for the whole year reached 5.05%, and it is estimated to grow around 6-6.5% in 2024. The overall macroeconomic balances are increasingly sustainable.
In implementing the strategy for socio-economic development, Vietnam continues to focus on three strategic breakthroughs, including improving and enhancing institutional quality, comprehensive human resource development, and completing synchronized economic infrastructure. To achieve these goals, Vietnam needs to mobilize both domestic and foreign resources, from foreign direct and indirect investment to the development of capital markets and stock markets, green and circular economies, and boosting digital transformation.
In this regard, the Minister of Finance affirmed that the investment promotion conference aims to create a substantive dialogue channel for Korean businesses and investors to better understand the innovation policy and determination of the Vietnamese Government, and most importantly, to reinforce the Korean investor’s confidence in the development potential of the Vietnamese market.
“The Vietnamese Ministry of Finance commits to accompany and facilitate the two countries’ businesses in moving towards the goal of raising bilateral trade turnover to $150 billion by 2030 in a balanced and sustainable manner. South Korea continues to be the leading country in terms of foreign direct investment and indirect investment in Vietnam. Vietnam welcomes new investments and the expansion of investment scale from Korean businesses in Vietnam,” emphasized the Minister.
Mr. Kim Yong-Jae, a standing member of the Financial Supervisory Committee of South Korea, committed to continue accompanying, enhancing cooperation, and sharing experience with Vietnam’s regulatory authorities, further promoting investment activities between businesses of the two countries.
ATTRACTING KOREAN INVESTMENT IN VIETNAM’S STOCK MARKET
The conference also provided Korean investors with information about the development of the Vietnamese stock market. At the same time, representatives of listed companies, international organizations, and investment fund management companies shared the growth potential of industries in the stock market, the demand for sustainable development capital, and the green capital of Vietnamese enterprises. They also shared their investment experience in the Vietnamese financial market from the perspective of the Korean Investment Fund.
During the conference, representatives of the Ministry of Finance and the State Securities Commission answered and exchanged views with Korean investors on important macroeconomic policies of Vietnam, mechanisms to attract investment in the Vietnamese capital market, the process of upgrading the Vietnamese stock market from a frontier market to an emerging market.
On the sidelines of the conference, witnessing the presence of Minister of Finance Ho Duc Phoc and leaders of the Financial Supervisory Committee of South Korea, Madame Vu Thi Chan Phuong, Chairwoman of the State Securities Commission, and Mr. Yoo Seok Seo, Chairman of the Korea Financial Investment Association (KOFIA), signed a Memorandum of Understanding on Consultation, Cooperation, and Technical Support between the State Securities Commission and KOFIA.
This Memorandum of Understanding signifies an important milestone in the cooperative relationship between the State Securities Commission and KOFIA, demonstrating the desire for long-term and effective cooperation for the sustainable development of the Vietnamese and Korean stock markets.
Both sides will continue to increase exchanges between high-level leaders as well as technical staff exchanges, enhance the exchange of information and support for market management, especially strengthening the role of securities companies in supervisory activities, creating favorable conditions and promoting the participation of investors and securities service providers between the two countries.
