Vietnam's Prime Minister Pham Minh Chinh recently visited South Korea from June 30 to July 3 to strengthen bilaterial ties and meet with key industry leaders.
During Prime Minister Pham's trip, he encouraged South Korean enterprises to expand their investments in Vietnam in priority areas such as advanced technology, electronics, semiconductors, AI, renewable energy, high-quality human resource training, and culture.
According to reports from Business Korea, Vietnam Plus, and VOA Vietnam, Pham met with influential figures, including Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Chairman Chung Eui-Sun, LG Electronics Chairman Koo Kwang-mo, SK Group Senior Vice Chairman Chey Tae-won, and Hyosung Chairman Choi Hyun-joon.
Samsung's engagement
As the head of Vietnam's largest foreign investor, Samsung's Chairman Lee reaffirmed to Pham his commitment to increasing investment in Vietnam, announcing plans to establish the tech giant's largest display module manufacturing facility in the country within the next three years.
Prime Minister Pham Minh Chinh expressed his gratitude for Samsung's investments, praising the Vietnamese government for supporting Samsung's business activities in Vietnam.
The Prime Minister also encouraged Samsung to increase the localization of its products in Vietnam by incorporating more Vietnamese firms into its supply chain and assisting with workforce training, innovation, technology utilization, and R&D activities.
According to The Investor magazine, Samsung has invested US$22.4 billion and employs 90,000 people in Vietnam. Additionally, 310 Vietnamese firms are part of Samsung's supply chain, and its R&D center in Hanoi employs 2,500 staff members.
During his visit, the Prime Minister toured Samsung's semiconductor plant in Pyeongtaek and held meetings with Chairman Lee.
Eco-friendly expansions
Local press also reported Pham met with Lotte Group and Doosan Enerbility separately.
Hyundai Motor, which has invested over US$410 million in Vietnam, expressed interest in the country's electric vehicle market and committed to more training programs for local talent. Pham invited Hyundai to continue investing in green transportation and localizing its supply chain to support Vietnam's domestic industries.
Hyosung had also announced plans to expand its investments in Vietnam, including establishing a data center in Ho Chi Minh City. Pham invited Lotte to invest in Vietnam's smart city and smart tourism initiatives.
During his meeting with Doosan Enerbility, Pham Minh Chinh praised the company's contributions to Vietnam's industrial and energy sectors. Doosan pledged to collaborate with local companies to promote clean energy and reduce carbon emissions.
Mutually beneficial bilateral trade
Vietnam aims to strengthen its relationship with South Korea through these engagements. According to Vietnam's Ministry of Industry and Trade (MoIT), there is minimal direct competition between the two countries' export structures.
Despite a trade deficit with South Korea, Vietnam relies on imports of essential manufacturing materials and equipment. South Korean investments account for 30% of Vietnam's total exports, with major contributions from companies like Samsung, LG, Hyundai Motor, Hanwha Group, Doosan, POSCO, and SK Group.
Pham's meetings with the industry leaders concluded with the signing of 23 memorandums of understanding in biotechnology, semiconductors, AI, education, healthcare, and other fields.
