South Korea promotes trade cooperation with Vietnam's South Central region

At the Trade Connection Conference for Exporting Goods from the South Central Region to South Korean Enterprises, co-organized by the Provincial People’s Committee of Ninh Thuan and the Vietnam-Korea Business and Investment Association (VKBIA) on September 24, eighteen memorandums of understanding (MoU) were signed between South Korean enterprises and businesses from localities in the South Central region, opening up many opportunities to enhance cooperation in exports and investment in the coming time.

Specifically, South Korean businesses signed 15 MoUs with Ninh Thuan Province, 1 with Khanh Hoa Province, and 2 with Binh Dinh Province. The agreements primarily focus on cooperation in exporting agricultural products, aimed at promoting trade and collaboration between localities in the South Central region of Vietnam and South Korea in the near future.

According to Mr. Trinh Minh Hoang, Vice Chairman of the People’s Committee of Ninh Thuan Province, the South Central region of Vietnam encompasses diverse climate and ecological zones, including the sea, plains, and mountains, tied to numerous potentials and advantages in various sectors. The warm weather throughout the year provides Ninh Thuan province, in particular, and the South Central region in general, with many unique products, thus increasing opportunities for agricultural exports to South Korea.

Mr. Hoang also emphasized that the signing of cooperation agreements between the two sides' businesses represents an opportunity for Vietnamese and South Korean enterprises to strengthen exchanges, cooperation, and supply-demand connections, and to promote investment in the region in the near future.

At the same time, South Korean enterprises had a chance to survey and explore the region’s potential, seeking investment opportunities in the South Central region and particularly in Ninh Thuan province. This not only benefits both parties but also helps them better understand support policies and investment incentives from Vietnam's central and local governments, thereby creating favorable conditions for promoting exports and sustainable development.

From the South Korean side, after studying the investment cooperation potential in Ninh Thuan and localities in the South Central region, South Korean businesses highly valued the advantages offered by the region. Mr. Jeon Do Hyun, General Director of Osan Logistics Co. Ltd (South Korea), expressed his impression of the proactive efforts of local authorities and the dynamism of businesses in the area.

Mr. Jeon Do Hyun also expressed hope for more opportunities in the coming time to connect so that businesses from both countries can better understand each other, thus promoting cooperation across various sectors and increasing trade between two countries.

Similarly, Mr. Tran Hai Linh, Chairman of the Vietnam-Korea Business and Investment Association (VKBIA), stated that strengthening trade connections between South Korean businesses and the South Central region has created opportunities for collaboration in various forms, such as B2B (business-to-business), B2C (business-to-customer), and B2G (business-to-government), helping to develop the business communities of both countries.

According to Foreign Investment Agency (FIA) at the Ministry of Industry and Trade, in the first eight months of 2024, the total registered FDI capital from South Korea in Vietnam reached more than $1.84 billion, with 276 new projects. Accumulated by the end of August 2024, South Korea led the list of countries and territories investing in Vietnam, with a total of 10,048 projects and capital of over $87.78 billion 

Figures from General Department of Customs also showed that the bilateral trade between the two countries during the past eight months of 2024 reached $53.66 billion. Vietnam mainly imports from South Korea items such as chips, machinery, equipment, computers, electronic products and components, pharmaceuticals, dietary supplements, and cosmetics. Conversely, Vietnam exports to South Korea products like textiles, components, seafood, wood products, machinery, footwear, vehicle parts, and textile fibers.

Moreover, South Korea has signed several bilateral and multilateral trade agreements with Vietnam, such as the ASEAN-Korea Trade in Goods Agreement (AKFTA), the Vietnam-Korea Free Trade Agreement (VKFTA), and the Regional Comprehensive Economic Partnership (RCEP) Agreement, thereby facilitating increased exports, especially from the South Central region to South Korea in the coming years.