South Korea, Vietnam deepen ties with major deal push

South Korean and Vietnamese companies are expected to sign dozens of business deals on Thursday, Korean media and two sources said, as South Korean President Lee Jae Myung visits Hanoi.

The corporate contracts and non-binding agreements will follow the signing of 12 cooperation pacts during a meeting between Lee and Vietnam’s top leader To Lam the previous day. These included an agreement on Korean investment in a new nuclear power plant in southern Vietnam, News.Az reports, citing Reuters.

“Our two countries will strengthen cooperation in joint research and talent development in semiconductors, secondary batteries and biotechnology,” Lee said after the meeting.

The deals expected to be unveiled on Thursday include a contract to supply rolling stock for Ho Chi Minh City’s urban rail system, he added.

Altogether, more than 70 agreements are expected across sectors including finance, consumer goods, advanced technology, infrastructure, and energy, according to South Korean media reports, though specific companies were not identified.

Two people familiar with the plans, speaking on condition of anonymity because the information was not public, confirmed that dozens of business agreements were expected during the visit.

Officials and media said representatives of more than 100 Korean companies operating in Vietnam are accompanying Lee following a visit to India.

These companies include Samsung Electronics, SK, LG, Lotte, POSCO Holdings, and HD Hyundai.

Samsung, which has invested more than $20 billion in Vietnam over decades, has built the largest presence among South Korean firms in the Southeast Asian country.

The company has recently made progress in long-running discussions with Vietnamese authorities regarding a possible back-end semiconductor manufacturing facility, according to sources familiar with the talks.

On Wednesday, Vietnam’s central bank announced it had granted a license to the Industrial Bank of Korea to open a wholly owned subsidiary in the country.

On Thursday, Lee also asked Prime Minister Le Minh Hung to help resolve challenges faced by Korean companies operating in Vietnam and to support their participation in strategic infrastructure projects, according to state media.

Korean businesses have raised concerns about issues such as access to investment incentives, tax refunds, and rising wages in Vietnam, which have been driven up in part by a significant influx of Chinese manufacturers.

News.Az 

By Nijat Babayev