Korea and Vietnam entering a new phase of mutual growth and development through combined efforts in advanced industries cooperation
Vietnam, with its attractive investment incentives, has seen significant foreign investment, particularly from Korea. However, foreign companies often face challenges in fully utilizing these incentives due to regional policy variations and inconsistencies between government agencies.
In a historic move, Korea-Vietnam relations were elevated to a Comprehensive Strategic Partnership at the end of 2022. Korea, being Vietnam's largest source of foreign direct investment (FDI), has cumulative investments of roughly $92 billion across more than 10,000 projects.
The visit of General Secretary To Lam presents a significant opportunity for Korea and Vietnam to design a shared future as true strategic partners. The focus is on cooperation in advanced industries, which is expected to provide economic benefits and a solid foundation for achieving structural innovation together.
Kim Nyoun Ho, chairman of the Korean Chamber of Commerce in Vietnam (KCCI), emphasized the need for stronger strategic partnerships and deeper integration in production chains, especially in advanced industries like semiconductors, AI, clean energy, and digital infrastructure.
Suggestions for enhancing Korea-Vietnam cooperation include strengthening strategic economic partnerships, supporting infrastructure development, promoting integration of production and value chains, facilitating investment support, encouraging participation in strategic forums, and establishing clear standards that keep pace with rapid technological advances.
Korean companies have thrived in Vietnam due to streamlined administrative procedures, investor-friendly policies, and regulatory easing. However, delays in customs clearance often occur in sectors such as semiconductor manufacturing equipment and precision instruments due to insufficient technical understanding among frontline officers in Vietnam.
The visit of General Secretary To Lam to Korea marks a new milestone in Korea-Vietnam relations. The Vietnamese government's reform efforts have earned respect from the Korean business community. Korea's perspective towards Vietnam is evolving, viewing it not just as a production base but as a strategic partner for joint innovation and growth.
Emerging mobility technologies in Vietnam, such as electric motorcycles, drones, and autonomous driving equipment, encounter commercialization hurdles due to regulatory gaps in pilot operations. There is a need to establish clear standards and to expand relevant academic programs and strengthen university-industry cooperation to address the supply of skilled professionals in advanced technologies.
KOCHAM, with over 1,000 member companies, will strengthen its role as a bridge, helping companies understand Vietnam's systems and business environment, and facilitating smooth collaboration with government bodies and local enterprises. KOCHAM looks forward to continued support and collaboration that will enable Korean enterprises to make meaningful contributions to Vietnam's future development.
In conclusion, the emphasis is on building a comprehensive, sustainable, and innovation-driven partnership that leverages Korea’s technological strengths and Vietnam’s investment environment and workforce potential.
- The focus of Korea-Vietnam strategic partnership is expected to expand beyond traditional business and finance, including cooperation in advanced industries like semiconductors, AI, clean energy, and digital infrastructure.
- The Korean Chamber of Commerce in Vietnam (KCCI) has emphasized the need for stronger strategic partnerships and deeper integration in production chains, especially in advanced industries, to foster innovation and growth for both nations.
