Vietnam’s top priority right now is controlling inflation, stabilizing the macroeconomy, fighting recession and reviving the economy, Chinh said during a meeting on Saturday with South Korean companies in Hanoi.
He said he hoped South Korean companies would prioritize expanding investment in Vietnam, especially in high-tech, and create favorable conditions for Vietnamese companies to join the value chain. .
This will help “make Vietnam a center of regional and global value chains”, he said.
Vietnam is also encouraging the development of clean and renewable energy as it seeks to promote cooperation with South Korea to establish major energy centers that would help achieve the country’s goal of carbon neutrality by 2050 and develop a transparent and competitive energy market, said Chinh.
During the meeting, South Korean companies made a series of recommendations on tax incentives, power planning, a pilot direct power purchase and sale mechanism, and solutions to build and develop electric vehicles.
Industry and Trade Minister Nguyen Hong Dien said Vietnam “guarantees that there will be no power shortage in 2022 and 2023, especially in industrial and production areas”, although there may be partial interruptions due to hot weather.
Earlier this month, the electrical system experienced voltage fluctuations, leading to power outages in some northern localities that are home to industrial zones and production facilities operated by South Korean giants.
South Korea is currently Vietnam’s largest FDI partner, investing in 19 economic sectors in 59 provinces and cities with 9,383 projects and a total registered capital of over $79.8 billion.
South Korea is currently Vietnam’s third-largest trading partner, with import-export turnover reaching 78 billion U.S. dollars last year, 150 times more than in 1992.
A series of South Korean conglomerates such as Samsung, LG, Hyosung, Hanwha, Hyundai, CJ Group and Lotte have expanded their presence in Vietnam.
Samsung Vietnam alone has a total investment of around $20 billion, attracting over 125,000 employees.
In the first seven months of the year, South Korea ranked second among 88 countries and territories investing in Vietnam, after Singapore, with a total capital of 3.3 billion dollars.