HCMC – Vietnam and South Korea are enhancing their cooperation in the small and medium-sized enterprise (SME) sector, aiming to create new opportunities for investment, trade, and business links.
Vietnam’s Ministry of Planning and Investment and South Korea’s Ministry of SMEs and Startups held the inaugural meeting of the Joint Committee on SMEs and Startup Cooperation in Hanoi on August 28.
Minister of Planning and Investment Nguyen Chi Dung emphasized the critical role of SMEs in economic and social development, noting that SMEs account for 98% of nearly 930,000 businesses in Vietnam.
“SMEs are essential for economic growth, job creation, poverty reduction, and income improvement,” Dung said, adding that the establishment of the committee is intended to enhance mutual understanding and cooperation between entrepreneurs from both countries.
The creation of the committee follows discussions between Dung and his South Korean counterpart, Oh Young Joo, during President Yoon Suk-yeol’s state visit to Vietnam in June 2023. The two ministries signed a memorandum of understanding in July this year during Prime Minister Pham Minh Chinh’s visit to South Korea.
Dung said Vietnam is keen on South Korean businesses continuing to expand their investments in sectors where South Korea has strengths and Vietnam has high demand, particularly in digital economy, green economy, circular economy, sharing economy, and emerging fields like semiconductors, artificial intelligence, hydrogen, and entertainment.
“Vietnam seeks further support from the South Korean government and businesses to help Vietnamese enterprises integrate into the supply chains of South Korean and global companies,” he said.
South Korean investors began setting up shop in Vietnam in the 1990s. As of June 2024, South Korea had pledged a total of nearly US$87.5 billion through more than 10,000 projects, accounting for 25% of all projects and over 18% of total registered foreign direct investment in Vietnam.
In the first half of this year, fresh investments in Vietnam by South Korean companies amounted to US$1.4 billion, ranking the Northeast Asian country fourth among the 84 countries and territories investing in Vietnam. This represents a 16% year-on-year rise.
South Korea has been Vietnam’s top investor in recent years, with the two countries elevating their bilateral relationship to a Comprehensive Strategic Partnership in 2022.
