Era of joint Korean-Vietnamese progress in advanced industrial partnerships
Kim Nyoun Ho, the chairman of the Korean Chamber of Commerce in Vietnam (KCCI), has highlighted several challenges and proposed solutions to further strengthen Korea-Vietnam cooperation in advanced industries during recent economic forums and discussions.
The challenges faced by Korean investors in Vietnam include procedural and administrative hurdles, the need for improved institutional frameworks, infrastructure constraints, and the importance of developing a foundation for science, technology, and innovation.
To address these issues, Kim Nyoun Ho suggests continued dialogue and cooperation between Vietnamese ministries and sectors, enhancing digital technology application, preparing conditions for attracting investment, forming inter-sectoral working groups, promoting in-depth cooperation focused on advanced technologies, and fostering cooperation in high-tech industries, production chain linkage, renewable energy, AI, blockchain, and healthcare and education services.
Kim Nyoun Ho also emphasizes the need for the relationship to move from broad-based investments toward strategic, high-value-added partnerships for long-term sustainable development. He believes that cooperation in advanced industries can provide economic benefits and serve as a solid foundation for achieving structural innovation together.
The Korea-Vietnam relationship has reached a new milestone with this visit, marking a turning point to further strengthen practical cooperation and mutual trust. On behalf of KOCHAM's more than 1,000 member companies, appreciation is expressed for General Secretary To Lam's outstanding leadership and dedication to the sustainable growth of bilateral relations.
Korea is Vietnam's largest source of foreign direct investment (FDI), accounting for 18% of total FDI with cumulative investments of roughly $92 billion across more than 10,000 projects. However, foreign companies often face difficulties in fully utilizing Vietnam's investment incentives due to regional policy variations and inconsistencies between government agencies.
The Vietnamese government's reform efforts have earned genuine respect from the Korean business community. Korean investment in Vietnam grew an impressive 107% on-year in the first half of this year. General Secretary To Lam's exceptional leadership and steadfast commitment to reform have played a significant role in the visible fruits of collaboration across various industries.
Korean companies are viewing Vietnam not just as a production base but as a strategic partner for joint innovation and growth. However, there are ongoing bottlenecks and obstacles that need to be addressed, such as the supply of skilled professionals in advanced technologies, insufficient academic programs, and the need for systematic training of specialized personnel.
To overcome these challenges, KOCHAM 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. Clear standards that keep pace with rapid technological advances and upgrading the institutional infrastructure for advanced industries in Vietnam are necessary to address delays in customs clearance.
The bilateral ties between Korea and Vietnam were elevated to a Comprehensive Strategic Partnership at the end of 2022. Enhancing information transparency and innovating the talent development ecosystem are crucial for Vietnam's industrial growth. Emerging mobility technologies in Vietnam, such as electric motorcycles, drones, and autonomous driving equipment, are encountering commercialization hurdles due to regulatory gaps in pilot operations.
In conclusion, Kim Nyoun Ho's suggestions aim to further strengthen Korea-Vietnam cooperation in advanced industries, focusing on mutual support, regulatory reform, infrastructure development, and targeted investment in high-value-added partnerships for long-term sustainable development. The visit of General Secretary To Lam presents a historic opportunity for Korea and Vietnam to design a shared future as true strategic partners, focusing on cooperation in advanced industries.
- To foster long-term sustainable development, Kim Nyoun Ho recommends moving from broad-based investments towards strategic, high-value-added partnerships in advanced industries, such as renewable energy, AI, blockchain, and healthcare and education services.
- In order to overcome challenges in advanced technology industries, such as the supply of skilled professionals and regulatory gaps, KOCHAM plans to strengthen its role in facilitating smooth collaboration between companies, government bodies, and local enterprises, and advocates for clear standards and upgraded institutional infrastructure in Vietnam.
