Vietnam and South Korea Hold First Bilateral SME Cooperation Committee Meeting
Hanoi, The Gulf Observer: Vietnam’s Ministry of Planning and Investment (MPI) and the Republic of Korea (RoK)’s Ministry of Small and Medium-sized Enterprises (SMEs) and Startups convened the inaugural meeting of their bilateral cooperation committee in Hanoi on Wednesday. This meeting marks a significant step in enhancing collaboration between the two nations’ SMEs and startups, following the strategic discussions during Korean President Yoon Suk-yeol’s state visit to Vietnam in June 2023.
The establishment of the cooperation committee underscores the importance both countries place on SME collaboration as a driver of innovation and sustainable development. The committee aims to foster mutual understanding among entrepreneurs and deepen cooperation in sectors where both Vietnam and South Korea have distinct strengths.
During the meeting, MPI Minister Nguyễn Chí Dũng expressed optimism that the committee’s efforts, bolstered by the support of research institutes and SME associations, would lead to the development of effective joint projects. He highlighted key areas for potential collaboration, including high-tech agriculture, food processing, pharmaceuticals, semiconductors, and electronics. Minister Dũng also emphasized the importance of integrating Vietnamese SMEs into South Korean and global supply chains, reaffirming Vietnam’s commitment to supporting business development.
The meeting also provided a platform for discussions on the growth and support of SMEs in both countries. The Vietnamese Ministry of Planning and Investment encouraged South Korean businesses to expand investments in areas where South Korea excels and Vietnam has high demand, such as the digital economy, green economy, and emerging industries like semiconductors, artificial intelligence (AI), and hydrogen technology.
Minister Oh Young Joo of South Korea’s Ministry of SMEs and Startups recognized the significance of this meeting as a new chapter in bilateral cooperation. He expressed hope that the committee would develop concrete plans to implement the Memorandum of Understanding (MoU) on SME and startup cooperation signed during Prime Minister Phạm Minh Chính’s visit to South Korea in July 2023. The MoU is expected to open new opportunities for investment, trade, and business connections between the two nations.
South Korea has been a major investor in Vietnam since the 1990s, with investments totaling nearly US$87.5 billion across over 10,000 projects as of June 2024, making it Vietnam’s top foreign investor. In recent years, South Korean investments have increasingly shifted towards high-tech industries, energy, finance, and high-quality services, reflecting a strategic move from traditional manufacturing to more advanced sectors.
Vietnamese SMEs, meanwhile, are making significant strides in technology adoption and innovation, gradually climbing the global value chain and forming strategic partnerships with South Korean companies. The potential of Vietnam’s SMEs spans various sectors, including manufacturing, electronics, agriculture, food processing, IT, textiles, and footwear.
The bilateral cooperation committee is expected to play a crucial role in further strengthening the ties between Vietnam and South Korea, fostering innovation, and contributing to the sustainable economic growth of both nations.
