A series of memorandums of understanding were signed within the framework of the Vietnam - Korea Business Forum. (Source: Investment Newspaper)

Billion dollar project waiting

A series of memorandums of understanding (MOUs) on cooperation between ministries, sectors and enterprises of Vietnam and South Korea were signed within the framework of the Vietnam - South Korea Business Forum, held last weekend, during the state visit of South Korean President Yoon Suk Yeo to Vietnam. Details of the MOUs were not disclosed, but showed that an open future in Vietnam - South Korea investment cooperation is being promoted.

This was actually predicted, as up to 205 businesses, including large Korean corporations such as Samsung, LG, SK, Hyundai Motor, Lotte..., accompanied President Yoon Suk Yeo to Vietnam this time.

Speaking at the Forum, Mr. Do Nhat Hoang, Director of the Foreign Investment Agency (Ministry of Planning and Investment) said that in the past 6-7 years, Korean investment in Vietnam has always had a breakthrough and Korea is currently the largest foreign investor in Vietnam, with a total registered capital of 82 billion USD.

Although Korean investment in Vietnam has slowed down in the first five months of this year, due to the general trend of global investment flows, a bright future lies ahead. “We have a list of dozens of pending projects, some worth hundreds of millions of USD, some worth billions of USD. We will soon have new information about these projects. Large corporations are still looking to Vietnam and consider Vietnam the number one investment destination,” Mr. Do Nhat Hoang excitedly announced.

Perhaps, it is no coincidence that this Vietnam - Korea Business Forum has the theme "Towards 30 years of new relations, Vietnam - Korea Industrial Cooperation Strategy in the future". Vietnam - Korea investment cooperation has achieved great results in the past 30 years and is starting to enter the next 30 years.

Even more than just 30 years, when sharing with Prime Minister Pham Minh Chinh, Chairman of Hyosung Group, Mr. Cho Hyun Joo said, Hyosung wishes to place the future of the next 100 years in Vietnam.

Having invested in production facilities in many localities across the country, such as Dong Nai, Ba Ria - Vung Tau, Ho Chi Minh City..., with a scale of about 3.5 billion USD, Hyosung considers Vietnam a strategic market. "We not only expand our scale, but also want this place to become a sustainable investment destination for the Group to develop", said Chairman Cho Hyun Joo.

Before the Vietnam - Korea Business Forum took place, Prime Minister Pham Minh Chinh had a meeting with leading Korean corporations. And not only Hyosung, many other commitments were made by large corporations.

LG Group Chairman Koo Kwang Mo confirmed that he has chosen Vietnam as his production base. LG currently invests 7.5 billion USD in Vietnam and is planning to invest an additional 5 billion USD in the near future. Similarly, SK Group, in addition to its existing billion-dollar investments, is aiming to invest 1.3 billion USD in the renewable energy sector.

Before these important events, Chairman of CJ Group Kyung Shik Sohn had a private meeting with Minister of Planning and Investment Nguyen Chi Dung. Sharing with the Minister, Mr. Kyung Shik Sohn said that CJ has invested in a series of companies in Vietnam, with a scale of about 1 billion USD. But not stopping there, CJ is continuing to invest in establishing a logistics center, investing in developing other fields such as veterinary medicine, biotechnology, exploiting projects using renewable energy...

Appreciating CJ's investment activities, Minister Nguyen Chi Dung called on the Group to continue implementing large-scale projects in Vietnam. "We will create the most favorable conditions for Korean investors to feel secure in investing and doing business long-term in Vietnam," said Minister Nguyen Chi Dung.

Opening a new path in Vietnam - Korea investment cooperation

On the last day of his visit to Vietnam, the President of the Republic of Korea visited Samsung's Research and Development (R&D) Center. It is easy to understand why President Yoon Suk Yeo chose this as his final stop and participated in the dialogue with the digital future of Vietnam - Korea there. Samsung is currently the largest foreign investor in Vietnam, with a total investment capital of up to 20 billion USD. The new R&D Center is like a new symbol in the Vietnam - Korea investment cooperation relationship. From partners in digital production cooperation, the Vietnam - Korea investment cooperation relationship can be upgraded to a partnership focusing on research and development.

Not only R&D, many cooperation opportunities in new fields are also opening up. Speaking at the Vietnam - Korea Business Forum, Prime Minister Pham Minh Chinh suggested that Korean enterprises continue to expand investment in the coming time, build long-term, sustainable, and environmentally friendly business strategies, contributing to Vietnam's commitment to achieving "zero" net emissions by 2050.

The specific areas of investment cooperation that the Prime Minister proposed are innovation, digital transformation, biotechnology, electronics, semiconductors, clean energy, green economy, smart cities, high-tech agriculture, etc. In particular, the Prime Minister hopes that Korean enterprises will increase investment in the fields of cultural industry and entertainment industry. These are also areas in which Korea has strengths and this cooperation is complementary and mutually developing.

“I hope Korean businesses will continue to make breakthroughs and together achieve 2-3 times more results in the coming years,” said Prime Minister Pham Minh Chinh.

Meanwhile, President Yoon Suk Yeo called on Korean businesses to invest in Vietnam. He called Vietnam “the center of restructuring the global supply chain.” Vietnam’s investment market has thus been upgraded.

“A new opportunity is opening up for Korea, which, more than any other country, is closely linked to Vietnam,” said President Yoon Suk Yeo, expressing that the answer to overcoming the current crisis can be found in Vietnam. “It is at the center of the restructuring of the global supply chain and an emerging consumer market,” said President Yoon Suk Yeo.