“Vietnamese Spring Rolls: A Tasty Treat for the World, Courtesy of the Prime Minister”

Vietnamese Prime Minister Meets with Major South Korean Business Groups

On the morning of July 3rd, as part of his official visit to South Korea, Prime Minister Pham Minh Chinh met with leaders of several prominent South Korean conglomerates, including CJ, Posco, LG, Daewoo E&C, GS Engineering & Construction Corp, and KDB Bank.

The South Korean business leaders welcomed Prime Minister Pham Minh Chinh to their country and expressed their confidence in the strong bilateral relations between the two nations. They also commended Vietnam’s improving business and investment environment.

The Prime Minister assured the business community that the Vietnamese government would accompany and support them in their investments, construction, and development of successful projects in Vietnam.

Encouraging Spring Roll Exports to the World

To begin the final day of his visit to South Korea, the Prime Minister met with Mr. Sohn Kyung Sik, Chairman of the CJ Group.

CJ Group is a multinational corporation founded in 1953 in South Korea, with a presence in the food and food service, biotechnology, logistics and retail, and cultural sectors. The group has investments in 25 countries, employing nearly 80,000 people, and generating approximately $31 billion in revenue in 2023.

CJ Group has been investing in Vietnam since 1998, with a total investment of $1 billion. Currently, they have 24 subsidiary companies in the country, and in 2023, they achieved a revenue of $1.4 billion with 11,200 employees.

During the meeting, CJ Group raised several recommendations regarding Vietnamese standards, taxes in the livestock industry, and administrative procedures. They expressed their desire to invest further in Vietnam’s food industry, logistics, and cultural industries, as well as promote the export of Vietnamese food specialties like spring rolls and processed shrimp to the global market, contributing to the spread of Vietnamese culinary culture.

The Prime Minister appreciated CJ Group’s efficient business operations in Vietnam and encouraged them to expand their investments, particularly in livestock farming and food processing with a focus on emission reduction and advanced technology. He also suggested that CJ Group increase the utilization of Vietnamese goods in their global supply chains and actively participate in social welfare activities.

In response to CJ Group’s policy suggestions, the Prime Minister assured that the government would consider and incorporate their recommendations in the process of refining existing policies and enacting new ones. He also emphasized the importance of anti-smuggling efforts to protect domestic production.

Welcoming Posco’s Expanded Investments in Vietnam

Subsequently, the Prime Minister met with Mr. Chang In Hwa, CEO of Posco Group, one of the top five businesses in South Korea.

In 2023, Posco Group achieved a revenue of $59 billion and a profit of $2.7 billion, employing 34,000 people. For 14 consecutive years, the group has been recognized as the “world’s most competitive steel producer.”

Posco Group has established four steel branches in Vietnam, investing $1.8 billion. In 2003, their revenue reached $1.7 billion, with an annual steel production capacity of approximately 1.8 million tons and a workforce of over 2,100 employees.

The Posco Group leader expressed interest in the field of clean energy and gas-fired power plants and shared their desire to participate in the exploitation and processing of rare earth elements in Vietnam. They also requested the conversion of their dedicated port in Ba Ria-Vung Tau province into a commercial port.

The Prime Minister appreciated Posco Group’s investment and business activities in Vietnam and welcomed their intention to expand their investments and operations in the country, focusing on green development, circular economy, and digital economy.

In response to Posco Group’s specific requests, the Prime Minister shared Vietnam’s interest in international cooperation and foreign investment in the rare earth elements sector, emphasizing fair and healthy competition among investors. He suggested that the group study and participate in LNG power projects in Thanh Hoa and Nghe An provinces.

Regarding the port conversion request, the Prime Minister proposed that the group submit detailed proposals to the relevant Vietnamese authorities for consideration and resolution, ensuring mutual benefit and environmental protection.

Establishing an Integrated LG Production Complex in Hai Phong

The Prime Minister then met with Mr. Cheoldong Jeong, CEO of LG Display. LG is a multinational industrial group founded in 1947, with core businesses in electronics, chemicals, and communications and services.

LG currently employs 270,000 people worldwide and generated approximately $137 billion in revenue in 2023. Their registered investment capital in Vietnam stands at $8.02 billion, with an estimated revenue of $13.97 billion in 2023. All of LG’s projects are located in Hai Phong, and they also operate R&D centers in Hanoi and Danang with over 1,000 employees.

The group’s leadership affirmed that Vietnam is LG’s global production hub, and they have invested over $5 billion in the country so far. They expressed gratitude for the Vietnamese government’s supportive policies and shared their plans for future investments, including the LG Innotek factory in Hai Phong, which will double their production capacity and establish an integrated LG production complex.

The Prime Minister applauded LG’s efficient investment and business operations in Vietnam and encouraged them to expand their investments in their areas of strength, focusing on the digital, green, circular, and sharing economies.

He suggested that LG increase localization, facilitate the participation of Vietnamese enterprises in their supply chains, and actively contribute to social welfare activities. The Prime Minister also invited LG to provide feedback on policies and establish additional R&D centers, considering Vietnam a crucial hub in their global strategy for producing and developing key products for the international market.

During the meeting, the Prime Minister and relevant ministers addressed LG’s specific concerns regarding the global minimum tax and power supply stability. They shared that Vietnam is in the process of drafting a decree on the establishment, management, and utilization of an investment support fund to ensure a stable, competitive, and attractive investment environment. Vietnam is also committed to ensuring a stable power supply, skilled human resources, and seamless infrastructure for LG’s projects.

Daewoo’s Investment in Thai Binh Province: A Wise Choice

The Prime Minister then met with Mr. Jung Won Ju, Chairman of Daewoo E&C and President of the Korea Housing Association.

Daewoo E&C, founded in 1973, is a multinational company specializing in construction and real estate. In 2023, the company achieved a revenue of over $8.4 billion and a net profit of $378 million. They have completed construction projects in 50 countries worldwide.

Daewoo E&C was the first South Korean construction company to establish a representative office in Vietnam in June 1991, even before the establishment of formal diplomatic relations between the two countries in 1992. In 2017, Daewoo E&C Vina was officially established with a total investment of $1.3 billion, focusing on investment, construction, and real estate development, including the prominent Starlake City project in Tay Ho Tay, Hanoi.

The group’s leadership expressed their interest in investing in energy, power plants, industrial parks, and infrastructure projects in Vietnam, such as the O Mon Thermal Power Plant No. 3 and No. 4, the Hai Lang LNG project, and the Long An LNG project. They also aim to apply and develop smart city models in the Tay Ho Tay new urban area (Starlake) and develop new urban areas in Thai Binh and other provinces.

The group takes pride in contributing to social welfare and charitable activities in Vietnam and has built Vietnamese temples in South Korea. They pledged to continue their efforts to strengthen bilateral relations.

The Prime Minister affirmed that developing new urban areas and promoting urbanization are long-term strategies for Vietnam. He commended Daewoo’s choice to invest in Thai Binh province, citing the region’s well-developed and interconnected infrastructure and dense population. He urged the group to expedite the project, taking advantage of the current favorable prices for construction materials, and emphasized the importance of adopting green and sustainable practices to minimize emissions.

The Prime Minister welcomed Daewoo E&C’s plans for expanded and reinvested efforts in Vietnam, particularly in infrastructure, real estate, energy, and smart city development. He invited the group to participate in Vietnam’s program to eradicate temporary and dilapidated housing by 2025.

Developing Nha Be New Urban Area into a Smart City

The Prime Minister also met with Mr. Huh Yoon Hong, Chairman, and Mr. Huh Myung-soo, Senior Advisor of GS Engineering & Construction Corp (GS E&C).

GS E&C, founded in 1969, specializes in investing in and constructing new urban areas, civil infrastructure, oil refineries and petrochemical plants, hospitals, schools, water treatment plants, and environmental pollution control facilities. The group has been ranked 22nd among the top 250 global construction companies for 10 consecutive years and has been included in the Dow Jones Sustainability Index for 11 years (2009-2020).

In Vietnam, GS E&C has undertaken real estate projects, including the Nha Be New Urban Area in Ho Chi Minh City, and has been involved in key infrastructure projects such as the Metro Line No. 1 (Ben Thanh-Suoi Tien), the Tan Son Nhat-Binh Loi-Outer Ring Road, the Vam Cong Bridge, and the Vinh Thinh Bridge (Hanoi-Vinh Phuc). They also operate manufacturing facilities for construction materials in Dong Nai and Ba Ria-Vung Tau provinces.

At the meeting, Mr. Huh Yoon Hong introduced GS E&C’s main investment areas in Vietnam and proposed cooperation in ongoing projects. He requested support for developing the Nha Be New Urban Area into a smart city, focusing on a concentrated IT zone for semiconductor design and high-tech startups, aligning with Vietnam’s overall development orientation.

The Prime Minister appreciated GS E&C’s contributions and successful investment and business activities in Vietnam. He welcomed the group’s vision for the Nha Be New Urban Area, emphasizing the “4-in-1” model that integrates urban, industrial, high-tech, and commercial functions.

The Nha Be area also benefits from improved connectivity due to newly constructed bridges, and the upcoming approval of Ho Chi Minh City’s master plan in July will further enhance its strategic location. Additionally, the city’s special mechanisms under the National Assembly’s Resolution 98, including land clearance and investor support policies, will facilitate project implementation. The accumulated experience and mutual understanding between the two sides will also contribute to the project’s success.

The Prime Minister requested that the group coordinate with Ho Chi Minh City and relevant agencies to expedite the necessary procedures for project implementation. He also encouraged GS E&C to actively engage in social welfare activities and support the eradication of temporary and dilapidated housing in local communities.

Developing the Pharmaceutical Industry: A Long-term Strategy for Vietnam

In a meeting with Mr. Hyoung Ki Kim, Vice Chairman and CEO of Celltrion Inc., the Prime Minister affirmed that developing the pharmaceutical industry is a long-term strategy for Vietnam.

Celltrion, founded in 1991, is a leading South Korean biopharmaceutical and biosimilar drug manufacturer, renowned for its three biosimilar drugs used in cancer and arthritis treatment. In 2023, the company achieved a revenue of approximately $1.65 billion, with a profit of $405 million. Celltrion aims to become a top 10 global biotechnology company.

During the meeting, Celltrion’s leadership highlighted the significant potential of the Vietnamese market and shared their plans to establish a company for the import and distribution of biopharmaceuticals in Hanoi. They also expressed their commitment to supporting Vinapharm, the Vietnam Pharmaceutical Corporation, through technology transfer and joint production, as well as cooperating in the marketing of Celltrion’s products in Vietnam through Vinapharm’s distribution system.

The Prime Minister appreciated Celltrion’s efficient business operations in the biopharmaceutical field in South Korea and acknowledged Vietnam’s advantages in diverse medicinal plants. However, he noted the need for additional capital and advanced technology to fully capitalize on these advantages. He assured that Vietnam would continue to refine its policies to foster the development of the pharmaceutical industry.

The Prime Minister welcomed Celltrion’s intention to cooperate, support, and transfer technology to Vinapharm. Regarding the group’s proposal for cooperation in the biopharmaceutical field, he emphasized the significant advantages for investment in Vietnam, particularly the vast market of 2 billion people through the Regional Comprehensive Economic Partnership (RCEP) with China and ASEAN countries.

The Prime Minister suggested that Celltrion continue discussions with the Ministry of Health and other relevant ministries to materialize their plans and enter the Vietnamese market, aiming to develop the biopharmaceutical industry with the vision of “coming late but finishing first.”

Encouraging KDB’s Credit Support Plans for Vietnamese Enterprises

Also on the same morning, the Prime Minister met with Mr. Kang Seoghoon, Chairman and CEO of KDB Bank.

KDB, established in 1954, is a policy bank wholly owned by the South Korean government. Its objectives are to implement the government’s policies and support South Korean enterprises in the international market, providing financial services ranging from lending to bond issuance. KDB has a presence in 25 countries worldwide and achieved a net profit of $1.9 billion in 2023.

In Vietnam, KDB has collaborated with major South Korean companies such as Samsung, LG, SK, and Hyosung since their initial forays into the market. They have supported new projects of Korean investors and closely coordinated with the Ministry of Finance to develop sustainable development strategies for the Vietnam Development Bank (VDB).