The Covid-19 pandemic broke out in Vietnam from 28th April 2021, since then foreign partners as well as Korean enterprises investing in Vietnam also faced many difficulties. Many factories had to suspend operations due to limited transport among localities, many cases were detected in industrial zones. However, now that the pandemic situation in Vietnam is gradually being under control, factories and industrial parks returned to operation, and transport among localities has also been easier. Moreover, there are no major problems in the production activities of the enterprise.
Currently, bilateral trade between Vietnam and Korea is reaching the highest level ever. For Vietnam, Korea is the third largest export destination and second largest import destination after the United States and China. Total trade turnover between the two countries as of the 2nd quarter of 2021 reached about 67.5 billion USD. Based on current trends, bilateral trade between 2 countries is expected to reach $70 billion by the end of this year. Although the Covid-19 situation is still complicated, it can be seen that the trade turnover between Vietnam and South Korea is increasing significantly.
Korea is still the largest investor in Vietnam with a total of 9,165 projects. Some main areas that Korean investors are interested in are manufacturing and producing. About 79% of Korean enterprises are investing in the manufacturing industry such as Samsung, LG, Hyundai Motors, etc. In recent years, investing in specialized chemical technology, information communication and retails has also increased significantly.
Renewal of Memorandum of Understanding between VIETRADE and KOTRA VIETRADE - MoIT, the Trade Promotion Agency of Vietnam, has set up the KOREA DESK within VIETRADE with KOTRA (Korea Trade-Investment Promotion Agency) following the MOU which was signed between two governments in Seoul, Korea, on the 27th of November, 2019 in the presence of both countries’ national leaders.
On the 1st of August 2020, KOREA DESK officially went into operation. The purpose of KOREA DESK is to support Korean enterprises’ investment and trading activities in Vietnam by addressing difficulties faced by Korean investors, facilitating their investments and assisting the promotion activities of Vietnamese central and regional government.
During more than 1 year of operation, KOREA DESK has organized many different programs and solutions such as: policy dialogue on mobile components sector in 2020, Online webinar "Vietnam-Korea Investment Connection" in 2020 and 2021, policy dialogue on autoparts sector in 2021, training and consulting programs in regional provinces to connect, consult and promote direct investment from Korea to Vietnam effectively. All activities have received large participation from Korean investors, representatives of localities and industrial parks in Vietnam and are highly appreciated. KOREA DESK plays an important role and is an effective and substantial investment promotion channel. With the positive results in activities, VIETRADE and KOTRA have officially continued to extend the commitments in the Memorandum of Understanding for another 3 years and KOREA DESK will continue to accompany provinces, industrial parks and business communities of the two countries in the connection of investment and trade to become more effective, practical and direct with specialized and in-depth thematic consultation network.