Prime Minister Pham Minh Chinh on Tuesday met with representatives of 35 major South Korean companies including including Samsung, LG, SK, Hyundai Thanh Cong, Hyosung, CJ, and Lotte. This marked the fifth meeting between the PM and foreign business representatives in a week.
Ko Tae Yeon, chairman of the Korean Chamber of Commerce (KoCham) in Vietnam, told the PM that Vietnam plays an important role in the global supply chain. He also highlighted Vietnam’s strong cooperative relationship with South Korea.
Attracting foreign direct investment (FDI) in semiconductors, AI), and green energy will help Vietnam rise to become a leader in the high-tech sector, he added.
“South Korean businesses are ready to cooperate to promote these areas in the near future.”
Yeon added that KoCham and Korean businesses wish to contribute to Vietnam’s development on its journey to become a global investment hub by fostering sustainable green economic development and innovation.
82% of Korean businesses believe that the Vietnamese government effectively responds to external fluctuations, according to a KoCham survey. They have confidence in Vietnam’s diplomatic capabilities and FDI support policies in the future.
Na Ki Hong, CEO of Samsung Vietnam, said that many countries now consider the development of the semiconductor and AI industries as matters directly linked to national security.
“They are preparing many diverse support policies at the government level,” he said, noting that Vietnam is also following this trend and is considering various incentive policies, including the development of a Digital Technology Industry Law.
The CEO proposed that policymakers prioritize the development of substantial preferential mechanisms to reassure high-tech businesses in making investment decisions.
Last year, South Korean businesses invested $7 billion into Vietnam, a 37.5% increase compared to 2023, bringing the cumulative FDI capital in the country to $92 billion. There are around 10,000 South Korean companies in Vietnam, creating more than 900,000 jobs.
KoCham chairman Ko Tae Yeon said that South Korean businesses can participate in design, manufacturing, and human resource training in key projects such as the North-South high-speed railway and nuclear power.
Representatives from several businesses raised recommendations to increase policy support for high-tech industries, investment funds, and trade procedures. They also want the government to modernize the logistics systems.
PM Chinh instructed ministries and local authorities to thoroughly address the recommendations.
“There is nothing hindering the resolution of obstacles,” he said. He urged investors to “be optimistic and believe in the prospects of cooperation between the two sides.”
The government aims for a GDP growth of 8% or higher this year, paving the way for double-digit growth in the coming years. Vietnam is determined to develop rapidly but sustainably, based on science and technology, digital transformation, ensuring equity and social security, and environmental protection.
Strategic breakthroughs are being achieved in institutions, infrastructure, and human resources, reforming administrative procedures, reducing time, costs, and hassle for businesses. Policymakers plan to reduce 30% of procedures and business costs.
The Prime Minister hopes that South Korean businesses and investors will continue to expand investment in new technology projects and strategic areas of innovation, including semiconductor, AI and renewable energy.
He asked them to consider Vietnam as a development base and an important link in the supply chain. In return, South Korean corporations should increase the localization rate of manufacturing, technology transfer, and high-quality human resource training for Vietnamese businesses.
“The Vietnamese government commits to ensuring that the foreign-invested economic sector is an important part of the economy, ensuring the rights of investors,” he said.
The PM also wants South Korean businesses to share experiences, participate in innovation centers, and establish research and development centers in Vietnam.
He suggested that businesses continue to bring South Korean experts and high-quality personnel to Vietnam and receive skilled Vietnamese workers in South Korea.
