Prime Minister Pham Minh Chinh and a high-level Vietnamese delegation have concluded a successful official visit to South Korea from June 30 to July 3. The visit, which included a policy speech by the Prime Minister at Seoul National University, a visit to Samsung’s semiconductor complex, meetings with leaders of major Korean corporations, and engagements with the Vietnamese community in Korea, received high praise from political and business circles.
The Prime Minister’s visit yielded substantial outcomes in economic, trade, and investment cooperation. More than half of the Prime Minister’s activities during this trip focused on economic matters. Both sides affirmed that economic cooperation is one of the most important pillars in the bilateral cooperation between the two countries.
The South Korean President affirmed his support for Vietnam in the areas of semiconductors and cultural industries.
To date, South Korea remains Vietnam’s top foreign investor, top tourist source, second-largest development partner in terms of ODA, and third-largest trade and labor partner. Meanwhile, Vietnam is South Korea’s top trading partner within ASEAN. Notably, many South Korean businesses consider Vietnam an attractive, safe, and top investment destination.
Four Chaebol Aim to Invest Billions of USD in Vietnam
Samsung and LG are two of the four leading Korean conglomerates intending to invest billions of USD in Vietnam. Photo: VNA
In South Korea, Prime Minister Pham Minh Chinh met with leaders of several leading corporations and businesses, including the top four Chaebol: Samsung, Hyundai, LG, and Lotte. These conglomerates announced plans to increase capital and expressed their desire to expand investment and long-term cooperation with Vietnam, committing to invest billions of USD and considering Vietnam a global “stronghold.”
Chaebol is a Korean term referring to large, family-controlled business conglomerates in South Korea.
First, the Samsung Group.
Prime Minister Pham Minh Chinh meets with Mr. Lee Jae Yong, Chairman of Samsung Group, on July 2.
Mr. Lee Jae Yong, Chairman of Samsung, shared that the group plans to make significant investments over the next three years to turn its factories in Vietnam into the “largest display module production base” in the group’s global network. The leader emphasized that as Vietnam’s largest foreign investor and exporter, Samsung is committed to accompanying Vietnam in sustainable development, in line with the spirit of “harmonious interests and shared risks” that Prime Minister Pham Minh Chinh has repeatedly emphasized.
Commenting on the flourishing cooperation between Samsung and Vietnam, the Chairman highlighted: “Vietnam’s success is Samsung’s success, and Vietnam’s development is Samsung’s development.”
Prime Minister Pham Minh Chinh welcomed Samsung’s future cooperation intentions, including new products and results, especially in creating breakthroughs in cooperation in the fields of digital economy, green economy, and circular economy.
Samsung employees in Vietnam on a production line. Photo: VNA
The Prime Minister hoped that the group would continue to expand its investments, diversify its supply and value chains, and consider Vietnam a strategic production base for research, development, and manufacturing of key products for the international market. He mentioned that Vietnam is negotiating free trade agreements and expanding into new export markets such as the Middle East, South America, and Africa, which would also benefit Samsung’s products.
Samsung Electronics, founded in 1969, is a South Korean multinational electronics corporation specializing in electronics, network systems, semiconductors, chip manufacturing, and smartphones. In 2023, the group’s revenue reached approximately $210 billion, with a total workforce of 270,000 people.
In Vietnam, Samsung has invested $22.4 billion and employs about 90,000 people. In 2023, Samsung Vietnam’s export turnover reached $55.7 billion.
Second, the Hyundai Group.
Prime Minister Pham Minh Chinh meets with Mr. Euisun Chung, Executive Chairman of Hyundai Motor Group, on July 1. Photo: VNA
During the meeting with Prime Minister Pham Minh Chinh on July 1 in Seoul, Mr. Euisun Chung, Executive Chairman of Hyundai Motor Group, expressed his desire to boost business activities and transfer new technologies and techniques to Vietnam, especially as the global and Vietnamese markets for electric vehicles continue to grow.
The Hyundai leader appreciated Vietnam’s strength in its young and high-quality workforce and anticipated programs to train and nurture Vietnamese talent in the automotive industry.
Prime Minister Pham Minh Chinh valued Hyundai Motor Group’s investment and business activities in Vietnam and encouraged the group to expand its investments in green transportation, increase technology transfer, enhance localization, support Vietnamese enterprises in joining the supply chain, and continue its sustainable development in Vietnam. Additionally, the Prime Minister requested Hyundai to consider engaging in social welfare activities.
Third, the LG Group.
Prime Minister Pham Minh Chinh meets with Mr. Cheoldong Jeong, CEO of LG Display, on July 3. Photo: VGP
On July 3, Prime Minister Pham Minh Chinh met with Mr. Cheoldong Jeong, CEO of LG Display. The LG leader affirmed that Vietnam is the group’s global production hub. To date, LG has invested over $5 billion in Vietnam and plans to invest an additional $3 billion in the next five years. He sincerely appreciated the active and effective support from the Vietnamese side.
The CEO discussed LG’s plans for continued investment in Vietnam, including the LG Innotek factory in Hai Phong, which will double its capacity and form a closed-loop production complex upon completion.
Prime Minister Pham Minh Chinh welcomed and highly appreciated LG’s investment and business efficiency in Vietnam. He suggested that LG increase localization, facilitate the participation of Vietnamese enterprises in its supply and production chains, actively engage in social welfare activities, contribute ideas to policy development and improvement, establish additional research and development centers, and consider Vietnam a crucial stronghold in its global strategy for producing, researching, and developing key products for the international market. This strategy should align with the digital economy, green economy, circular economy, and sharing economy.
Founded in 1947, LG is a South Korean multinational industrial group primarily engaged in electronics (smart home appliances, vehicle components, etc.), chemicals (chemical materials, biotechnology, cosmetics), and communications and services (mobile services, business platforms). In 2023, LG employed 270,000 people worldwide and generated approximately $137 billion in revenue.
Meanwhile, LG’s registered investment capital in Vietnam stands at $8.02 billion, with an estimated revenue of $13.97 billion in 2023. The group’s projects are currently located in Hai Phong. Additionally, LG operates R&D centers in Hanoi and Danang, employing over 1,000 people.
Fourth, the Lotte Group.
Prime Minister Pham Minh Chinh meets with Mr. Shin Dong-bin, Chairman of Lotte Group, on July 1. Photo: VNA
On July 1, Mr. Shin Dong-bin, Chairman of Lotte Group, expressed his confidence in Vietnam’s continued strong development and its role as a global economic focal point. He believed that the two countries would develop an economically “win-win” relationship. The Lotte leader proposed two projects: Lotte Thu Thiem and Lotte Mall Hanoi and expressed his desire for Lotte to have the opportunity to invest in large-scale projects in Vietnam.
Prime Minister Pham Minh Chinh appreciated Lotte’s investment and business activities in Vietnam and stated that Vietnam welcomes and hopes for the group’s continued expansion in areas of strength, such as smart city development, to boost tourism. The Prime Minister emphasized that the Vietnamese government would accompany and support Lotte in investing in and developing large-scale projects.
Founded in 1967, Lotte is the fifth-largest multinational conglomerate in South Korea, with a presence in over 30 countries across Asia, Europe, and the Americas. In 2022, Lotte employed approximately 40,000 people outside of South Korea, and its revenue reached $62.9 billion.
Prime Minister Pham Minh Chinh’s visit to South Korea promoted very specific economic cooperation programs and projects between the two countries. The Prime Minister proposed promoting loans through the Economic Development Cooperation Fund (EDPF) worth $2 billion and non-binding loan conditions for the Economic Development Cooperation Fund (EDCF) worth $2 billion to develop strategic infrastructure such as high-speed railways.
The two countries agreed to encourage Korean businesses to expand their investments in Vietnam in key and future industries such as digital transformation, green economy, circular economy, semiconductors, environmentally friendly energy, biotechnology, 5G networks, and smart cities. They also agreed to expand exchanges in small and medium-sized enterprises and startups and implement training projects for high-tech human resources in fields such as artificial intelligence (AI). Additionally, the two sides agreed to cooperate in promoting Korean business investment to build a stable supply chain of core minerals.
Vietnam and South Korea have agreed to implement specific measures to achieve the goal of raising bilateral trade turnover to $100 billion by 2025 and strive for $150 billion by 2030, in a balanced and sustainable manner.
(Photos: VGP)
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