Era of mutually beneficial Korea-Vietnam collaboration in sophisticated industries
The visit of General Secretary To Lam to Korea marks a significant milestone in the relationship between the two countries, with both parties expressing a shared focus on cooperation in advanced industries. This strategic partnership is aimed at achieving ambitious trade targets, increasing bilateral investment, and fostering a sustainable Korea-Vietnam economic partnership.
Kim Nyoun Ho, the chairman of the Korean Chamber of Commerce in Vietnam (KOCHAM), emphasized the need for collaboration to extend beyond traditional sectors into cutting-edge fields such as clean energy, semiconductors, AI, and smart urban development. To strengthen this cooperation, he suggested several key strategies.
Firstly, there is a need to expand cooperation in advanced, high-tech industries and clean energy. This involves promoting integration of production and value chains in these sectors to boost efficiency and competitiveness.
Secondly, boosting infrastructure development, particularly in digital, energy, and climate-resilient projects, is crucial for supporting the growth of these industries.
Thirdly, deepening science, technology, and innovation linkages is essential for enterprise growth. Clear standards for emerging mobility technologies like electric motorcycles, drones, and autonomous driving equipment need to be established to keep pace with rapid technological advances and ensure systematic training of specialized personnel.
Lastly, continued strong governmental support and policy facilitation are necessary to ease business operations and foster innovation-driven growth.
The Vietnamese government's reform efforts have earned the respect of the Korean business community, with Korean enterprises viewing Vietnam not only as a production base but also as a strategic partner for joint innovation and growth. However, the supply of skilled professionals in advanced technologies remains insufficient, necessitating the expansion of relevant academic programs and strengthening of university and industry cooperation.
Korea is Vietnam's largest source of foreign direct investment (FDI), accounting for 18% of total FDI through cumulative investments of roughly $92 billion across more than 10,000 projects. The fruits of this collaboration are visible across the economic, science and technology, digital, and defence industries. In fact, Korean investment in Vietnam grew an impressive 107% on-year in the first half of the current year.
On behalf of KOCHAM's more than 1,000 member companies, appreciation was expressed for General Secretary To Lam's outstanding leadership and dedication to the sustainable growth of bilateral relations. The visit presents a historic opportunity for Korea and Vietnam to design a shared future as true strategic partners, focusing on cooperation in advanced industries.
The bilateral ties between Korea and Vietnam have been elevated to a Comprehensive Strategic Partnership. Enhanced official development assistance (ODA) for strategic infrastructure, and a commitment from both governments to create favorable investment environments, are also emphasized as critical for overcoming practical business challenges.
In conclusion, the future of Korea-Vietnam cooperation in advanced industries looks promising, with both parties committed to fostering a sustainable and long-term economic partnership.
The first strategy proposed by Kim Nyoun Ho involves expanding cooperation in advanced, high-tech industries and clean energy, with a focus on promoting integration of production and value chains in these sectors to boost efficiency and competitiveness.
To support the growth of these industries, Kim Nyoun Ho suggests boosting infrastructure development, particularly in digital, energy, and climate-resilient projects, and deepening science, technology, and innovation linkages by establishing clear standards for emerging mobility technologies and ensuring systematic training of specialized personnel.
