RoK companies step up investment in hi-tech industries in Vietnam

Society – Economy - Ngày đăng : 18:40, 11/10/2024

Investment of the Republic of Korea (RoK) in Vietnam has gradually expanded from heavy industries to a wide range of high-tech industries, significantly contributing to the development of the manufacturing industry and high technology transfer between the two countries, according to the Korean Chamber of Commerce in Vietnam (KOCHAM).

KOCHAM President Kim Nyonho said the RoK recorded the largest cumulative investment in Vietnam from 1992 to August 20240, with total investment reaching about US$87.7 billion, evidencing the extensive economic cooperation between the two countries.

With advantages in geographical location, plentiful workforce, and strong support from the Government, Vietnam has become an attractive destination for the RoK business community and investors, Kim said.

Previously, RoK firms primarily focused their investments on the textile industry, but the scope has now expanded to heavy industries like steel and automobile, and advanced industrial sectors such as electronics, pharmaceuticals, and information technology.

About 2,000 member businesses of KOCHAM are operating in Vietnam, and they plan to enlarge their investment and business activities in many localities across the Southeast Asian nation.

Jo Hyung Taek, CEO of Bizwell Co., Ltd., stated that the collaboration between Vietnam's manufacturing capability and the RoK’s technological strength can create a synergistic effect that enhances competitive advantages.

Statistics show that the RoK is now one of the largest foreign investors in Vietnam, particularly in industry, manufacturing, services, and high technology.

According to Pham Tri Cuong, Founder and CEO of Powertech Trading and Technology Co., Ltd., promoting cooperation between Vietnamese and Korean firms in areas of digital transformation, renewable energy, and supply chain, which are shaping the future development, will open up new development opportunities for both countries.

With its achievements in clean energy technology and green economic goals, the RoK can importantly contribute to Vietnam's strong investment in renewable energy development such as wind power, solar energy, and energy storage solutions, he added.

The formation of a bilateral supply chain will help both nations improve their competitiveness, thus ensuring sustainability and stability amid fluctuations in the international market, Cuong said.

In terms of digital transformation, the RoK is one of the countries with the world's leading technological development platform, with giants in electronics, telecommunications, and IT such as Samsung, LG, and SK. These corporations have been providing advanced technologies and experience for Vietnam’s digital transformation scheme.

Vietnamese and Korean companies have been collaborating on applying advanced solutions, including artificial intelligence, blockchain, and the Internet of Things (IoT), in the manufacturing sector.

By effectively taking advantage of each other’s strengths in digital transformation, renewable energy, and supply chain, Vietnam will increase its opportunities to achieve sustainable development goals, while RoK firms can tap favourable conditions to expand their market presence.

VNA