MoIT leader’s proposals to expand Vietnam-RoK industrial, energy ties

At the meeting, Minister Ahn Duk-geun said Vietnam has become the second largest Southeast Asian market for RoK investors. Therefore, Vietnamese Prime Minister’s visit to the RoK is an opportunity for the two ministries as well as relevant authorities of the two countries to promote exchange, understanding and business connectivity in the fields of trade, industry, and energy.

RoK Minister of Trade, Industry and Energy Ahn Duk-geun and Vietnamese Minister of Industry and Trade Nguyen Hong Dien reach an agreement on many solutions to raise bilateral trade to US$150 billion by 2030

Minister Nguyen Hong Dien said that the bilateral trade is benefiting greatly from bilateral and multilateral free trade agreements (FTAs) to which the two sides are a signatory, especially the Vietnam-Korea Free Trade Agreement (VKFTA).

The export structures of the two countries are complementary with each other and there is little direct competition among them. Vietnam mainly exports items that RoK enterprises produce (phones and components, computers, electronic products and components, machinery and spare parts) and its strong export items such as farm produce, seafood, processed foods, textiles and garments, footwear, and wood products. Meanwhile, the RoK has become the second largest supplier, after China, of components, accessories, machinery, equipment, and raw materials as input materials for Vietnam's manufacturing industries, especially export manufacturing sectors.

According to Dien, the two ministries have extremely important tasks of increasing the bilateral trade value to US$150 billion by 2030, and strengthening and expanding cooperation in the industrial sector, focusing on key, mining and energy industries.

The bilateral discussion between RoK Minister of Trade, Industry and Energy Ahn Duk-geun and Vietnamese Minister of Industry and Trade Nguyen Hong Dien

To realize the above-mentioned objectives, Minister Nguyen Hong Dien introduced seven proposals.

Firstly, the two ministries should hold dialogues to ease all difficulties and obstacles, and create the most favorable conditions for businesses of the two countries to exchange information and participate in trade fairs, exhibitions and other trade promotion events of both sides.

Secondly, it is important to encourage enterprises of the two countries to cooperate and invest in large-scale projects in order to develop the automotive industry, thereby forming a number of automotive industrial centers/clusters, which produce strategic vehicle models suitable for the traffic conditions, income, and consumption habits of Vietnamese people.

Thirdly, Vietnam encourages RoK enterprises to invest in Vietnam in exploiting and deep processing of key minerals, including rare earths and bauxite.

Fourthly, Vietnam seeks the RoK’s cooperation and investment in manufacturing equipment for the renewable energy industry, including wind power, solar power, energy storage and smart grid, to help reduce the cost of electricity, and increase power generation capacity.

Fifthly, the two sides should establish strategic cooperation to enable Vietnam’s participation in the RoK’s semiconductor supply chain, promoting the exchange and development of human resources in this field.

Sixthly, Vietnam requests the RoK to train human resources and cooperate in new energy industries including hydrogen, green ammonia, and small-scale nuclear power.

Seventhly, the RoK is requested to strengthen support for deeper penetration of Vietnamese goods into major RoK distribution channels such as Lotte Mart, E-Mart, Home Plus, and CJ Home Shopping.

Minister Ahn Duk-geun affirmed that the RoK attaches great importance to and wants to promote cooperation with Vietnam in many fields, especially economics, trade, investment, and energy, with the goal of raising bilateral trade to US$150 billion by 2030. The Vietnamese Ministry of Industry and Trade (MoIT) and the RoK’s Ministry of Trade, Industry and Energy will coordinate to create an industrial ecosystem and provide the most favorable conditions for the business communities of the two countries.

Wrapping up the working session, Minister Nguyen Hong Dien emphasized Vietnam’s commitment to creating the most favorable conditions for RoK investors to expand their operations in Vietnam.