Chairman of Kocham: Prime Minister Pham Minh Chinh’s Visit – A New Step Forward in Vietnam-Korea Economic and Trade Cooperation

In an interview with the Government Portal, Mr. Choi Bundo highly appreciated Prime Minister Pham Minh Chinh’s visit to South Korea and considered it a great success.

The Chairman of Kocham expected that after the visit, the two countries would make significant strides in economic cooperation and that trade exchanges between South Korean businesses investing in Vietnam would see even more breakthroughs.

According to Mr. Bundo, the visit not only boosted the operations of 10,000 South Korean companies investing in Vietnam but also led to the formation of new industrial complexes investing in energy, renewable energy, cutting-edge technology, and artificial intelligence sectors.

Notably, during the visit, the Prime Minister and the Vietnamese business delegation met with representatives of large South Korean corporations such as Samsung, Hyundai, and LG. At these meetings, Vietnam’s leader promoted the country’s image, people, and favorable investment environment to attract leading South Korean corporations to continue investing and doing business in Vietnam in the long term.

Mr. Choi Bundo believes that the goal set by the Prime Ministers of both countries to increase bilateral trade to $100 billion by 2025 and $150 billion by 2030 is entirely achievable.

Since the establishment of diplomatic relations in 1992, trade between Vietnam and South Korea has grown exponentially over the past 30 years. Bilateral trade volume has increased continuously from $2 billion in 2000 to $79.4 billion in 2023. Both countries are each other’s third-largest trading partner.

Promoting Business Activities of Investors in Vietnam

Commenting on the Vietnamese government’s efforts to improve the business environment, Mr. Choi Bundo said that the government had timely introduced policies such as reducing value-added tax and extending the tax payment deadline for companies facing difficulties due to the global economic recession.

In addition, to boost the tourism industry, Vietnam officially waived the 45-day visa for citizens of some countries entering Vietnam under the visa waiver program.

Particularly, Vietnam has made efforts to enhance transparency in administrative procedures related to investment licensing and institutional regulations in many other fields by applying for online registration procedures on the National Public Service Portal. These measures actively promote business activities for investors in Vietnam.

Up to now, Vietnam has successfully signed and implemented 16 free trade agreements with bilateral and multilateral trading partners, including the Vietnam-Korea Free Trade Agreement (VKFTA).

“The signing of trade agreements, combined with specific policies on tariffs and non-tariff measures for Vietnamese goods, has also made it easier for Vietnamese businesses to participate in the global supply chain. The government’s efforts to improve the investment environment and economic integration have created many new opportunities for Vietnam’s sustainable development,” Mr. Choi Bundo emphasized.

The Chairman of Kocham expressed his hope that, in the context of Korean investors expanding their business operations in Vietnam, Vietnamese authorities would further strengthen institutional support and respond promptly to changes in the investment environment. He added that investment licensing procedures within the framework of the agreements signed between the two countries need to be addressed more proactively and swiftly.

In addition, Vietnam needs to further reform procedures for work permits for young Korean workers who want to stay in Vietnam, temporary residence cards, customs procedures, and value-added tax refund regulations.

Besides preferential support to attract large investors, Vietnam should also formulate preferential policies for small and medium-sized enterprises. These companies have also contributed significantly to Vietnam’s economy over the decades.

Supporting Vietnam’s Sustainable and Comprehensive Development

According to Mr. Choi Bundo, many South Korean businesses are now turning to Vietnam to expand their investment in the field of new and renewable energy.

Kocham has about 500 member companies operating in the textile, footwear, and handbag industries. The main investment markets that South Korean businesses aim for are the United States and Europe.

Consumers in the US and Europe are demanding that Korean manufacturing and processing companies in Vietnam produce goods using renewable energy sources, including rooftop solar power.

Therefore, the Chairman of Kocham hopes that the Vietnamese government will proactively strengthen measures to support the process of granting the necessary licenses to Korean businesses implementing green transformation projects as required by the international market.

Regarding supporting Vietnam in training high-quality human resources, South Korea is promoting the implementation of various diverse activities. Specifically, educational training institutions of large Korean companies have also come directly to Vietnam to train and develop human resources.

In addition, experts with decades of accumulated experience in production techniques in South Korea have also come to Vietnam to share their knowledge.

“I believe that the efforts in training and developing human resources of Korean companies will greatly contribute to Vietnam’s sustainable and comprehensive development. And in the future, Korean businesses will continue to make unremitting efforts for this,” shared the Chairman of Kocham.

Kocham always strives to find solutions to support each Korean business investing in Vietnam and promote contributions to the Vietnamese economy through interactions with local authorities, the Vietnamese government, and other foreign economic organizations and associations, emphasized Mr. Choi Bundo.