The Hanoi Supporting Industry Business Association (HANSIBA) on April 21 signed a memorandum of understanding with the Northern District Office of Gwangju city, along with the Korea Association for Photonics Industry Development (KAPID) for economic cooperation.

Overview of the signing ceremony. Photo: Khac Kien/The Hanoi Times

At the signing ceremony, HANSIBA Chairman Nguyen Hoang highlighted the strong economic cooperation between Vietnam and South Korea, with major South Korean companies already established in Vietnam and planning expansion.

To boost the cooperation, the business communities of both countries need to explore new approaches and concrete initiatives in various economic sectors, including electronics and photonics, Hoang said.

HANSIBA, which has over 200 member companies specializing in supporting industries and high technology, is particularly interested in cooperating with South Korean enterprises in the Hanoi Southern Supporting Industrial Park (HANSSIP). The park focuses on the development of supporting industries, high technology, microchips, and photonics and electronics.

The HANSSIP, located in Hanoi, has completed its infrastructure and is now ready to support the operation of enterprises from Vietnam and South Korea, Hoang suggested.

HANSIBA, together with its Korean partners, is developing a plan to be submitted to the governments of both countries, aiming to secure the best possible support policies for joint production in this supporting industry complex.

“This signing ceremony marks a tangible step in actively implementing the economic cooperation strategy between Vietnam and South Korea,” Hoang said.

HANSIBA will collaborate and provide support to businesses in various aspects, including recruitment, labor training, technology cooperation, factory construction, tax, land, and other preferential policies for the business communities of both countries.

"Following the signing, both sides will immediately commence building programs and action plans, and begin joint production. We will conduct direct surveys at each other's production facilities, and organize online and in-person exchanges to formulate the best action plan," Hoang said.

A representative from the North District Office of Gwangju mentioned that the locality is a focal point for many South Korean enterprises in the fields of photonics, electronics, and semiconductors, with 240 photonics-related enterprises.

The South Korean businesses expressed hope that this signing will further elevate the cooperation between the two sides to new heights, resulting in concrete and positive outcomes.

Recognizing the importance of cooperation, Nguyen Quang Vinh, Vice Chairman of the Vietnam Confederation of Commerce and Industry (VCCI), stressed that South Korea continues to hold significant positions in various areas of cooperation with Vietnam.

These include being the largest foreign investor and the second largest partner in development cooperation, tourism, and labor, and the third largest in trade cooperation with a turnover of $88 billion in 2022.

With around 8,000 South Korean enterprises engaged in production and business activities in Vietnam, strengthening cooperation and trade promotion between Vietnam and South Korea is a key priority to achieve the target of $100 billion in bilateral trade turnover by 2023, Vinh said.

While Vietnam has always been regarded by South Korean businesses as a safe and attractive investment destination, Vietnamese businesses are willing to cooperate with their South Korean counterparts, Vinh added.