Korea wants to assist Vietnam in upgrading its economy
Korea wants to assist Vietnam in upgrading its economy

Seoul: Vietnam's foreign minister said on Monday that the country's biggest investor is in a good position to provide crucial support for Hanoi to join the global supply chain.

Vietnam welcomes and encourages Korean businesses to set up new operations or develop existing ones there. We hope to receive assistance from the Republic of Korea for Korean corporations to join the global value chain, Minister Bui Thanh Son said in an interview with The Korea Herald on Monday.

Son stressed the importance of Seoul, citing the influence of tech giants such as Samsung Electronics, the world's biggest memory chip maker, on international trade.

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Son's comments came hours before the summit between the presidents of the two countries. Vietnam's Nguyen Xuan Phuc and South Korea's President Yoon Suk-yeol meet in Seoul to celebrate 30 years of their diplomatic ties. A similar summit was last held eleven years ago.

According to Son, the "pillar and main driving force" of the relationship is economic cooperation. According to the most recent data from Korea, Hanoi and Seoul are each other's third largest trading partner as of last year. And amid growing US-China technological rivalry, Vietnam—an important link to Southeast Asia for countries like Korea seeking deeper engagement with the region—is being recognized more and more as a distinct destination for sourcing.

According to Son, "Both sides should promote supply chain cooperation and guarantee economic security as well as supply chain resilience." Son suggested that to do this, the two countries should set up collaborative research and development centers to work on the latest technologies.

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Son further said that this collaborative effort should be used to build "green infrastructure" such as smart cities and green industrial parks, which rely on technology to use energy more effectively while having less negative impact on the environment. depend.

About 300 Korean and Vietnamese businessmen are expected to gather in Seoul on Tuesday, the final day of Phuc's three-day visit, for a forum to discuss, among other things, building smart electricity grids and nuclear reactors in Vietnam.

The Korea International Trade Association, the Vietnam Chamber of Commerce and Industry, and Herald Corp will co-host a similar conference next week in Hanoi. The gathering will be large, with participants exchanging ideas for the future as well as business proposals.

The Korea Herald deserves praise for putting together the Vietnam-Korea Economic Forum. "The two countries are enjoying an excellent relationship, especially in terms of economic, trade and investment cooperation," Son said, highlighting the fact that Hanoi is an economic hub that crosses Northeast Asia and Southeast Asia. does. It is a very favorable time for Korean businesses to promote their trade and investment in Vietnam.

According to Son, the 15 free trade agreements that Vietnam has signed so far, including the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), reflect Hanoi's desire for economic clout and Shows dedication to cooperation. with all parties.

The RCEP, which alone covers about a third of the global population, is essentially a China-backed alternative to the US-led CPTPP.

Son continued by saying that Vietnam's economy has demonstrated its ability to maintain or at least "sustain" overall economic stability, including managing inflation, which has been a drag on the world economy over the past year. Has happened.

In the first nine months of 2022, Vietnam's GDP is expected to grow by 8.83 percent, Son stressed. The Korea International Trade Association, one of five trade lobby groups in the country, predicts the Vietnamese economy will grow 7% this year, much higher than the 3.2% growth forecast for China, Korea's biggest trading partner.

Son proposed what he believed would be a path that would be equally beneficial to both economies, noting that Vietnam had much to learn in rebuilding its economy in the face of growing supply chain problems and Korea is one of the world leaders in innovation.

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The focus should be on sectors and services that support innovation and sustainable development. The success of Korean businesses is indeed the success of Vietnam.

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