The Vietnamese government is taking proactive steps to restructure its cooperation framework aimed at penetrating the South Korean market. With bilateral trade reaching an all-time high, Vietnam is shifting from mere support to a partnership focused on creating shared value.
According to various Vietnamese media outlets, on May 14, the Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade (MoIT) held a seminar on trade and investment promotion in the South Korean market. The event was attended by representatives from relevant ministries, associations, and Vietnamese companies, as well as officials from the Korea Trade-Investment Promotion Agency (KOTRA) and the Korea International Trade Association (KITA) Hanoi office.
In his opening remarks, Le Hoang Thai, Deputy Director of VIETRADE, noted, "This year marks the 34th anniversary of diplomatic relations between Korea and Vietnam. Last year, the trade volume between the two countries reached $94.5 billion, a 9% increase from the previous year, with Vietnam's exports to Korea amounting to $28.9 billion, up 12.9%." He also reported that the trade volume for the first quarter of this year was approximately $26.9 billion, reflecting a 29.5% increase compared to the same period last year.
However, there are calls to reassess the cooperation model itself. Dao Trong Tien, a second secretary at the Vietnamese Embassy in South Korea, emphasized that the priority now is to revisit the cooperation model. He stated, "We are rapidly transitioning from a past approach focused on unilateral support to a partner model that creates value and data together." He explained that South Korea's economic growth rate has remained between 1.8% and 2.1% in recent years, with key criteria emerging around technological competitiveness, digital transformation capabilities, compliance with international standards, ESG (environmental, social, and governance) practices, data transparency, and rapid response capabilities.
Need to Strengthen Competitiveness of Vietnamese Partners
Currently, South Korea is Vietnam's largest source of foreign direct investment (FDI). The cumulative registered investment exceeds $90 billion, with over 10,000 projects currently in operation. However, it has been noted that Vietnamese companies remain stuck in low-value-added processing stages. Strategies to address this include expanding the use of free trade agreements (FTAs), enhancing digital infrastructure in industrial zones, refining ESG standards, and entering the supply chains of large FDI companies.
Kang Heon-woo, head of the KITA Hanoi office, stated, "From 2025, semiconductors will become the top export item from Vietnam to South Korea." He highlighted that semiconductors and flat-panel displays account for approximately 55.7% of South Korea's exports to Vietnam, with intermediate goods making up over 50%. He stressed the need for Vietnamese companies to improve quality, pricing, delivery, safety certifications, and responsiveness to establish themselves as key suppliers for South Korean FDI firms.
Examples from the field were also shared. Bui Thi Hoa, vice president of Viet Han High-Tech Production Joint Stock Company, described her company's entry into the global supply chain through a strategy called "3I" (Investment, Absorption, Innovation). She noted that investments in equipment, automation, and the application of Korean-style quality management systems have been foundational in enhancing competitiveness.
Building on these discussions, VIETRADE announced it will operate a "Korea Trade and Investment Delegation" in Seoul from July 12 to 17. The delegation will include 25 member companies from various sectors, including industrial products, electronics, manufacturing, furniture, textiles, and agricultural products.
Furthermore, the delegation will hold a "Vietnam-Korea Trade and Investment Cooperation Conference" at KOTRA headquarters, followed by a "Vietnam-Korea Business Conference" at the KITA headquarters. One-on-one business consultations will also be conducted in collaboration with the Korea Importers Association (KOIMA) and the Korea-ASEAN Center. A visit to the Incheon Free Economic Zone Authority (IFEZ) is also scheduled to facilitate discussions from multiple angles.
* This article has been translated by AI.
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