Enterprises from Vietnam and South Korea should enhance cooperation to diversify their supply chains and avoid the over-reliance on a single source for both input materials.

Overview of the conference.

Deputy Head of the International Cooperation Department under the Vietnam Chamber of Commerce and Industry (VCCI) Truong Bich Ngoc made the statement at a conference discussing trade promotion between Vietnam and South Korea on December 30.

“Vietnam gives priority to its relations with South Korea on all spheres, which is also in line with South Korean’s New Southern Policy, in which Vietnam is seen as a key partner,” noted Ms. Ngoc.

In 2020, the Covid-19 pandemic has led to a global economic recession, not to mention existing issues including growing protectionism around the world and the US-China trade tension, that has forced Vietnamese enterprises to constantly look for new methods of doing business and diversify export markets.

In this context, bilateral trade relations between Vietnam and South Korea in the first eight months of 2020 stood at nearly US$50 billion, equivalent to the figure of the same period last year, added Ms. Ngoc.

“The figure is on track to reach or even exceed the two-way trade exchange volume of US$70 billion recorded in 2019,” she added.

Meanwhile, South Korea is currently Vietnam’s largest investor with a combined foreign direct investment (FDI) commitment as of April 2020 at US$69 billion in 8,751 projects.

Senior International Director of the Korea Importers Association (KOIMA) Joong-hyun Jough said the organization is committed to enhancing cooperation with the VCCI in supporting local enterprises joining KOIMA’s network of importers, focusing on major fields including garment, footwear, and organic foods.