Compared to peers from other countries, South Korean investors possess unique advantages in Vietnam, mainly thanks to cultural similarities and the affection of Vietnamese people for South Korea, according to Prime Minister Nguyen Xuan Phuc.

Participants at the conference. Source: VGP.

“To ensure successful businesses, one must fully integrate and adapt to local environment. In this regard, no one is better than South Korean investors in Vietnam,” said Phuc at a conference held in Seoul on November 28 with major South Korean’s conglomerates in the fields of heavy industry, construction, finance, banking, and automobile.

The event was jointly organized by Vietnam’s Ministry of Planning and Investment (MPI) and South Korea-based law and business consulting firm K&C, with presences of CJ Group, Lotte Group, Hana, Hanwha, Hyosun, LG, among others.

Phuc expected South Korean companies to create a new miracle in investment in Vietnam, contributing to bringing bilateral trade to US$100 billion in 2020 or even higher.

According to Phuc, the South Korean community in Vietnam is the largest of its kind outside South Korea in Asia, indicating the huge attraction of Vietnam to South Korean businesses and investors.

Over the past few years, South Korean companies and brands have gained multiple successes in Vietnam and have huge influence on the local people, Phuc stated, adding each Vietnamese family has at least one South Korean product such as Samsung’s smart phone, LG washing machine, air conditioner, cosmetics, or clothes from South Korean brands.

Overview of the conference. Source: VGP.

Phuc referred to Park Hang-seo, coach of Vietnam’s national football team, as the most loved foreigner in the country, while in major football matches, the national flags of Vietnam and South Korea are often seen together.

Moreover, the South Korean entertainment industry has similar attraction to Vietnamese compared to Hollywood, he said.

Phuc stressed Vietnamese economy is growing at a rapid and stable rate for many years, saying South Korean investors could rely on Vietnam’s political and economic stability to commit long-term businesses in the country.

Phuc said Vietnam could help South Korean realize their potential and become even richer, which is evident through the strong performance of Samsung, LG, Huyndai, KIA, Lotte, as well as the rapid growing South Korean community in Vietnam.

The PM said the government would continue to address shortcomings of the economy, including the lack of high quality human resources and deficiencies in infrastructure development, to support investors.

At the meeting, most South Korean conglomerates said they plan to expand operations in Vietnam, while representatives of CJ and Hyosung target Vietnam as their production hubs for other markets.