Ministry of Planning and Investment Portal

The meeting reviewed cooperation between the two countries since the previous meeting, looked into obstacles in some fields to forge bilateral ties, and outlined cooperation orientations in the time ahead.

Since the establishment of the bilateral diplomatic ties 30 years ago (1992-2022), the Vietnam-RoK relations is at its best stage of development, and cooperation between the two countries has seen outstanding developments in all fields, bringing interests to both sides and helping promote mutual trust and understanding. The two countries expect to upgrade their bilateral relations to a “comprehensive strategic partnership”.

Overview of the meeting. Photo: MPI

MPI Deputy Miniser Phuong said, the countries also step up their extensive cooperation in finance-banking, infrastructure, transport, information technology, science-technology, agriculture, forestry and fishery, education and training, and culture. Vietnam and the RoK are important partners, taking active part in regional, international forums and multilateral cooperation mechanisms.

Last year, the RoK was Vietnam’s third biggest trade partner, (after China and the United States), the fourth biggest exporter and second biggest importer.

As of September, the RoK has 9,438 valid projects worth 80.5 billion USD, ranking the first in terms of registered capital and project number in Vietnam. Korean enterprises continue playing an important in the Vietnamese economy, contributing about 30% to the country’s total export value.

Regarding official development assistance (ODA), Vietnam continued to be a leading partner of the RoK that received about 20% of the RoK’s total ODA. The RoK’s total assistance to Vietnam has been valued at more than 500 million USD recently, with 90% ODA and 10% non-refundable aid.

MPI Deputy Minister Tran Quoc Phuong at the meeting. Photo: MPI

Pham Hoang Mai, Director of the MPI’s External Economic Department informed the guests about the Government of Vietnam’ prioriy to using the RoK’s ODA in the next period; the implementation of the Economic Development Cooperation Fund (EDCF) Loan Agreement for 2016-2023 and the orientations for using loans in the next period.

He said, the MPI coordinates with relevant Korean agencies on amedments to the RoK’s Country Partnership Strategy (CPS) for Vietnam. Vietnam prioritises using ODA and non-refundable aid in health care, climate change, poverty reduction, education-training and large-scale infrastructure projects.

The Korea International Cooperation Agency (KOICA) Viet Nam Country Director expressed his delight at the successful implementation of projects usinh the RoK’s ODA in Vietnam, and called for futher coordination in the coming time. He said, the Korean government has prepared the new CPS in line with Vietnam’s socio-economic development orientations, with focus on increasing the effectiveness of ODA projects in transport, public administration and response to climate change.

The two countries also work closely to remove obstacles and bolster cooperation in promising fields like as industry, energy, infrastructure, transport, construction and finance-banking.

The two sides agreed to step up exchanges, information sharing, and capacity improvement. Accordingly, the RoK’s experience and capacity are strengths that Vietnam must actively exploit.

Korean Deputy Foreign Minister Jun Seong Deok hailed the Vietnam-RoK relations has seen remarkable progress over the past years. Vietnam has been arising as an attractive destination to businesses of both RoK and other countries by its outstanding development, he added.

Deok thanked the MPI and Vietnamese agencies for creating the best possible conditions for Korean firms to invest in the country. He stressed the significance of the meeting, and asked the countries to boost further collaboration to increase the Vietnam-RoK active investment cooperation.

At the meeting, the two sides had frankly exchanged ideas to point out difficulties and outline cooperation orientations in the tim ahead. In term of trade and investment cooperation, the Vietnamese sides proposed solutions to reduce Vietnam’s trade deficit and promote its export of some prioritised items to the RoK.

Participants assessed the implementation of the Vietnam-RoK Free Trade Agreement (VKFTA) and the ASEAN-RoK Free Trade Agreements (AKFTA) to boost trade relations and raise the two-way trade to 100 billion USD by 2030 and 150 billion USD by 2050.

The meeting also sought ways to forge the two countries’ cooperation, including amendments to the RoK’s CPS for Vietnam, priority areas of using the RoK’s ODA and preferential loans, and developing the upcoming EDCF Loan Agreement./.