Vietnam is seeking investment in innovation, renewable energy, and smart city from South Korea when Chairman of the Vietnamese National Assembly (NA) Vuong Dinh Hue worked with East Asian conglomerates in Seoul on Dec 13.

Hue said that Vietnam facilitates the investment in these fields at meetings with Hanwha Energy’s CEO Jung In-sub, Daewoo E&C’s President and CEO Hyung Kim, Korea Development Bank (KDB)’s Chairman Lee Dong-gull, President of Samsung Electronics Han Jong-hee, Chairman of SK Inc. Choi Tae-won, and CEO of Lotte Shopping and Lotte Mart Kang Sung-hyun.    

Vietnam's National Assembly Chairman Vuong Dinh Hue (R) and President of Samsung Electronics Han Jong-hee on Dec 13. Photos: VNA

Cooperation in innovation

Talking with President of Samsung Electronics Han Jong-hee, Hue said Vietnam welcomed the corporation to invest in a research and development center in Vietnam to serve its closed production chain in the Southeast Asian country.

He said Vietnam supported its investment expansion and plans to help Vietnamese companies access to Samsung’s global supply chain. Hue expected Samsung to have specific solutions to improve competitiveness among domestic firms.

In talks with Choi Tae-won, Hue thanked SK for joining Vietnam’s National Innovation Center (NIC) and financing it $30 million. He hoped that SK would have programs to support Vietnamese small and medium-sized enterprises in the global supply chain.

The Vietnamese legislative leader asked SK to help the country in its energy transition and cutting carbon emissions, as well as transfer technology in producing Covid-19 drugs and vaccines.

Tech transfer in renewables

Working with Hanwha Energy’s CEO Jung In-sub, Hue expected that the company would continue investing in green energy to catch up with the energy transition in Vietnam. He hoped that the investor would transfer technology on solar farms and LNG projects to Vietnamese partners.

Hue said Vietnam is encouraging investment in Hai Lang LNG Project in Quang Tri Province.

Jung In-sub said Hanwha has prepared for Hai Lang LNG Project and would kick start the construction in 2026. He pledged to transfer tech to Vietnam.

The CEO said Hanwha, which is the 7th biggest utility company in South Korea, would develop different projects in Vietnam like the 1.500-megawatt (MW) Hai Lang LNG worth $US$2.3 billion, the 1.500-MW Ca Na Power Center costing $2.2 billion.

Vietnam's National Assembly Chairman Vuong Dinh Hue and Daewoo E&C’s President and CEO Hyung Kim.

Smart city

In talks with Daewoo E&C, Hue highly appreciated its contributions to developing urban infrastructure in Vietnam through its series of projects over the past years.

To be in line with Vietnam’s development strategies, he welcomed Daewoo E&C to expand investment in Vietnam with a focus on green, smart, and advanced urban networks.

Hue also wanted the company to diversify its investment portfolio and expand investment in this field with more integrated urban areas. He hoped Daewoo E&C would share experience in managing smart cities in Vietnam.

Daewoo E&C was the first South Korean construction company to set up an office in Vietnam with an investment of $1.3 billion.

Vietnam's National Assembly Chairman Vuong Dinh Hue and Korea Development Bank (KDB)’s Chairman Lee Dong-gull.

Bank restructuring

Regarding bank restructuring, one of the important fields, Hue highlighted the role of KDB in operating in Vietnam, expecting the bank’s greater cooperation with local commercial banks and its broader engagement in bank restructuring in Vietnam.

Under a memorandum of understanding between the two governments, KDB will open its Hanoi office in Hanoi to provide loans in infrastructure to both South Korean and Vietnamese clients. 

Being a wholly state-owned policy development bank, it helps finance and manage major industrial projects to expedite the industrial development of Korea. Listed in the global top 1,000 banks in 2018, KDB Bank has not only fostered the growth of strategic industries but also facilitated the turnaround of troubled companies through restructuring and providing capital for strategic development projects.

It has extended financial support to many South Korean companies working in Vietnam. It has worked with Vietnam’s Ministry of Finance to build development strategies for the Vietnam Development Bank (VDB).

Vietnam's National Assembly Chairman Vuong Dinh Hue and CEO of Lotte Shopping and Lotte Mart Kang Sung-hyun.

To commemorate the 30thh anniversary of the bilateral ties between Vietnam and South Korea in 2022, Hue hopes that Lotte will have constructions featuring the bilateral relations.

CEO of Lotte Shopping and Lotte Mart Kang Sung-hyun said Lotte is developing two complex projects in Thu Thiem, Ho Chi Minh City, and Lotte Mall in Hanoi.

Lotte Eco Smart City project in Thu Thiem costing $2.2 billion is invested by Lotte and three Japanese partners namely Mitsubishi Corporation, Mitsubishi Estate Co., Ltd, and Toshiba Corporation. It is expected to be the typical construction in Thu Thiem Urban Area – a new zone with advanced technology in the business hub of Ho Chi Minh City.

South Korea currently tops the list of investors in Vietnam with more than $72 billion in more than 9,100 projects. South Korean companies working in Vietnam are employing roughly one million Vietnamese workers.

Economic ties play an important role in the Vietnam-South Korea relations and it is a focus in the four-day visit to Seoul by Vuong Dinh Hue. His entourage is joined by a deputy prime minister in charge of economic issues.