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Prime Minister Pham Minh Chinh speaks at Seoul National University during his visit to the RoK. (Photo: VNA)

RoK media spotlight PM Pham Minh Chinh’s recent visit

Major media outlets of the Republic of Korea (RoK) continued to highlight the results of the recent visit to the Northeast Asian country by Vietnamese Prime Minister Pham Minh Chinh at the invitation of his Korean counterpart Han Duck-soo.

Donga Ilbo ran an article, recalling Chinh’s speech at the Asian Research Centre of the Seoul National University, in which he affirmed Vietnam always values its cooperation and exchanges with the RoK while highlighting similarities in culture of the two countries.

The newswire quoted Seoul National University President Yoo Hong-lim as saying that over the past ten years, about 600 Vietnamese students have studied at the university. He said the university plans to continue to maintain and expand cooperation into research fields with Vietnam in the near future.

Meanwhile, Hankuk Kyongjae run an article, stating that Vietnam is trying to attract Korean investment in the semiconductor industry. During his visit to the RoK from June 30 to July 3, the Vietnamese PM met with Samsung Electronics Chairman Lee Jae-yong, examining a possible plan to attract semiconductor investment. The Vietnamese leader made a field trip to Samsung’s semiconductor cluster in Pyeongtaek province.

Vietnam’s Bac Giang province was mentioned as a top candidate for receiving the investment, cited VNA.

Hankuk Kyongjae quoted Chinh as saying that Vietnam welcomes and encourages investment in semiconductors and artificial intelligence (AI). He said Vietnam will promote an ecosystem for the areas and also emphasized that Vietnam will make efforts to foster high-quality talent, improve systems and develop infrastructure to best support companies investing in the semiconductor industry.

According to Hankuk Kyongjae, all eyes are on whether this move will actually lead to the development of the semiconductor industry in Vietnam. If semiconductor investment becomes a reality, the northern province of Bac Giang near Hanoi is considered as one of the favorable locations for Korean companies to enter the market.

As Samsung Electronics produces nearly 50% of the world’s total smartphones in Vietnam, it’s highly likely that the country will be a venue for the company’s semiconductor investment.

Samsung Electronics has so far poured approximately US$22.4 billion into projects in Vietnam. With more than 90,000 workers working locally, Samsung Vietnam’s export turnover reached about 55.7 US$billion last year. The firm currently produces not only smartphones but also network equipment, TVs, screen displays and batteries in Ho Chi Minh City, Bac Ninh and Thai Nguyen.

Hankuk Kyongjae quoted Samsung Chairman Lee Jae-yong as saying that the company is planning to invest in screen displays, and Vietnam will become the largest screen manufacturing base in the world in the next three years.

Lao leaders value Vietnam – Laos parliamentary cooperation

General Secretary of the Laos People Revolutionary Party and President Thongloun Sisulith and Lao National Assembly Chairman Xaysomphone Phomvihane highly appreciated parliamentary cooperation between Laos and Vietnam during their separate meetings with Vice Chairman of the National Assembly of Vietnam Nguyen Khac Dinh in Vientiane on July 4-5.

At these meetings, the two Lao leaders welcomed Dinh’s working visit which they said offers the National Assembly of Laos and its relevant agencies the chance to learn about Vietnam’s experience in constitutional amendments to help Laos amend its 2015 Constitution to meet the country’s socio-economic development requirements, according to VOV.

General Secretary of the Laos People Revolutionary Party and President Thongloun Sisulith (R) welcomes Vice Chairman of the National Assembly of Vietnam Nguyen Khac Dinh in Vientiane on July 5.

They voiced their support for the two countries in effectively implementing a memorandum of understanding on cooperation, including maintaining visit exchanges and organizing conferences to share experience and promote the implementation of documents signed by the two governments.

The Lao President supported the initiative of the two National Assemblies in compiling and publishing a book marking 50 years of the relationship between the two legislative bodies. He suggested that the National Assembly of Vietnam continue to share experience with the National Assembly of Laos in constitutional amendments, as well as in holding ASEAN events as Laos is assuming the role of ASEAN Presidency in 2024.

He expressed hope that the National Assembly of Vietnam would continue to promote the implementation of cooperation agreements between the two Governments as well as sectors to help facilitate bilateral economic, trade and investment cooperation commensurate with their political ties.

Dinh for his part briefed his hosts on the results of his working trip to Laos, focusing on sharing information and practical experience of the National Assembly of Vietnam in constitution amendments and lawmaking.

Vietnam is ready to support Laos to successfully perform its role as ASEAN/AIPA Chairman in 2024, contributing to enhancing its role and position in the region and the wider world, Dinh said.

Also on July 5, the National Assembly of Vietnam and the National Assembly of Laos jointly held a workshop to share experience in legislative research.

Apple supplier Foxconn to invest over US$550 million in two projects in Vietnam

Foxconn, the Taiwan-based supplier to Apple, will invest about US$551 million in two new projects in Vietnam’s northern coastal province of Quang Ninh.

The above information was highlighted in the recent articles released by the South China Morning Post (SCMP) and the U.S. website Bloomberg.com.

Accordingly, the Taiwanese company has been granted approval to produce smart entertainment products and smart-system equipment at the new facilities

The company has been licensed for a US$264 million project in Song Khoai Amata Industrial Park to produce smart entertainment products, with a designed capacity of about 4.2 million units per year.

It has also been permitted to invest in a US$287 million project in Bac Tien Phong Industrial Park to make smart-system equipment, the posting said.

Foxconn, whose main subsidiary Hon Hai Precision Industry is responsible for assembling the bulk of the world's iPhones, has been diversifying its production bases with new manufacturing sites in places like India and Vietnam.

The two new projects bring the total investment pledged by Foxconn in the province to about US$1 billion.

The Quang Ninh provincial government will form a working group to help Foxconn quicken the process with "supportive measures and creating the most favorable conditions" to complete construction by September 2025.

The government last year announced two other Foxconn plants that would make electronic components, supported with a total investment of US$246 million.

Meanwhile, in recent April, U.S.-based tech giant Apple announced on its Vietnam website that it would "increase spending on suppliers" in the country.

The company has spent nearly US$16 billion since 2019 through its local supply chain, and more than doubled its annual spending to Vietnam during the same period, VGP reported.

Photo: VGP

Since its operation in Vietnam a decade ago, Apple has helped generate more than 200,000 jobs.

Also in April, Apple chief executive Tim Cook paid a two-day visit to Vietnam, as the U.S. tech giant's efforts to diversify its supply chain came into focus again.

Foreign investment disbursement in the January-June period reached a five-year high of US$10.84 billion, according to official data.

A report from the Ministry of Planning and Investment's Foreign Investment Department (FIA) showed that as of June 20, foreign investment inflows into Vietnam during the reviewed period also saw an increase of 13.1 percent to nearly US$15.19 billion.

HCM City, Hanoi listed as emergers in Asia-Pacific

Ho Chi Minh City and Hanoi have been listed as emergers in the Asia-Pacific region in the first Inclusive Cities Barometer recently released by Cushman & Wakefield, a leading global real estate services firm.

Emergers are cities that are witnessing emerging pockets of progress aimed at addressing social and urban inclusivity for their citizens, VNA reported.

Hoan Kiem Lake. Photo: vietnam.travel

According to Cushman & Wakefield, Ho Chi Minh City stands out with its favorable levels of population density, high levels of health care access and affordable residential renting.

Meanwhile, Hanoi’s top 3 drivers include higher levels of gender equality, comparatively affordable housing and lower levels of transport costs.

The cities represented in the Barometer are at varying stages of their journey towards more inclusive and vibrant urban environments. Instead of ranking cities by performance, it measures their progress relative to these starting points, highlighting exemplary successes and providing an actionable roadmap for improvement.

New strides and opportunities in Vietnam-South Korea relations

Prime Minister Pham Minh Chinh’s official visit to South Korea not only strengthens cooperation between the two countries but also creates new business and investment opportunities for Korean investors.

In a recent interview with VGP, Chairman of the Korean Chamber of Commerce in Vietnam (Kocham) Choi Bundo underlined the significance of the Prime Minister's recent visit to South Korea, adding that the visit was very successful.

Choi expressed his belief that after the visit, the two countries will make strides in the field of economic and trade cooperation while trade exchanges of Korean businesses operating in Vietnam will make breakthroughs.

The outcomes of the visit are expected to promote business activities of 10,000 Korean businesses investing in Vietnam, and encourage Korean firms to invest in renewable energy, cutting-edge technology and artificial intelligence, Choi shared.

Remarkably, within the framework of the visit, Prime Minister Pham and the Vietnamese business delegation had meetings with representatives of Korean chaebols such as Samsung, Hyundai, and LG. At these meetings, the Vietnamese leader briefed about Vietnam's country, people, and safe and favorable investment environment to attract leading Korean corporations to continue investing and launching long-term operations in the country.

According to Choi, both Vietnamese and Korean Prime Ministers vowed to raise the bilateral trade value to US$100 billion by 2025 and US$150 billion by 2030, which is completely feasible.

Since the two countries established diplomatic ties in 1992, trade turnover between Vietnam and South Korea has grown over the past 30 years. Bilateral trade constantly increased from US$2 billion in 2000 to US$79.4 billion in 2023. Both countries are each other's third largest trading partner.

Kocham praises Vietnam's efforts to improve the business environment, as evidenced by the Government promptly issuing policies such as reducing value-added tax (VAT) and extending tax payment deadlines for businesses facing difficulties due to the global economic recession.

In addition, to promote the tourism industry, Vietnam officially waived visas for 45 days for citizens of some countries to enter the nation under visa exemption regulations.

Vietnam has made efforts to increase transparency in administrative procedures for investment licensing and institutional regulations in many sectors via enhancing the application of online registration procedures on the National Public Service Portal. These measures positively support investors' business activities in Vietnam.

In addition, to date, Vietnam has successfully joined 16 bilateral and multilateral free trade agreements (FTAs), including the Vietnam-Korea Free Trade Agreement (VKFTA).

"Thanks to Vietnam's active participation in FTAs and the nation's appropriate specific tariff and non-tariff policies for Vietnamese goods, Vietnamese businesses can easily participate in the global supply chain. The Government's efforts to improve the investment environment and enhance economic integration have created a solid foundation for the nation to develop sustainably," Choi Bundo emphasized.

Kocham Chairman expressed his hope that Vietnamese authorities will increase assistance in terms of institutions to adapt to changes in the investment environment in the context of Korean investors expanding business activities in the country.

Investment registration certificates within the framework of the signed agreement between the two countries need to be resolved more actively and quickly, he suggested.

Meanwhile, the nation needs to step up reform of work permit procedures, temporary residence cards, customs procedures, and VAT refund regulations.

In addition to incentives to attract big investors, Vietnam should propose preferential policies for small and medium-sized enterprises which have made great contributions to Vietnam's economy over the past decades, recommended Choi.

Kocham stands ready to support Vietnam towards sustainable development

According to Choi, many Korean businesses are looking to expand investment activities in industries related to newly-emerging sectors and renewable energy in Vietnam.

Kocham is home to 500 Korean businesses operating in textile, footwear and handbags, targeting export items to the U.S. and Europe.

Consumers in the U.S. and Europe are demanding that Korean manufacturing and processing businesses in Vietnam produce products using renewable energy sources, including rooftop solar power, cited VGP.

Chairman of the Korean Chamber of Commerce in Vietnam (Kocham) Choi Bundo.

Therefore, Kocham Chairman expressed his hope that the Vietnamese Government will take measures to support the process of granting necessary licenses for Korean businesses to implement green transition projects in line with requests of international markets.

Regarding high-quality human resource training, specialized training facilities from large Korean companies have come to Vietnam to train and develop human resources. In addition, highly skilled experts traveled to Vietnam to share their experience.

"I believe that Korean companies' efforts in human resource training will make contributions to the sustainable and comprehensive development of Vietnam. In the future, Korean businesses will continue to make continuous efforts for this process," shared the Kocham Chairman.

Kocham always strives to find solutions to support each Korean business investing in Vietnam, contributing to the development of the Vietnamese economy via interactive activities with local agencies, the Government, international organizations and foreign associations, Choi emphasized.

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