Vietnam-RoK relations, a new vision for the future

Vietnamese- Republic of Korean relations have developed considerably since the establishment of diplomatic ties in 1992.

The new RoK Ambassador to Vietnam, Mr. Park Suk Hwan stated this at a press conference on May 25.

The ambassador’s statement was illustrated by a significant increase in the turnover of two way trade (from US$500 million in 1992 to US$9.5 billion in 2009). He said that Korea is now one of the biggest foreign investors in Vietnam with about 2,300 projects in operation worth US$20 billion and creating jobs for 400,000 Vietnamese workers.

According to a recent survey conducted by the Korea Trade and Investment Promotion Agency, most RoK companies operating in Vietnam are satisfied with the current conditions for foreign investors and businesses.

Strategic cooperation partners

According to Ambassador Hwan, it is the result of both parties’s determination to build up economic and trade relations. The comprehensive cooperation agreement signed by President Tran Duc Luong’s visit to RoK in 2001 laid a foundation for bilateral relations in various fields. Especially after Prime Minister Nguyen Tan Dung’s official visit to RoK in May 2009 and RoK Lee Myung-Bak’s visit to Vietnam in October 2009. Both countries have agreed to develop the relationship to strategic cooperation partners, contributing to the development of both countries.

According to this agreement, the turnover of two-way trade is expected to double, reaching US$20 billion by 2015, with an equal balance of trade.

During PM Nguyen Tan Dung’s visit to the summit conference to mark the 20th establishment of the ASEAN-RoK relations in 2009, nearly 20 agreements and contracts worth billions of US$ were signed between Vietnamese and RoK businesses.

During the week to celebrate the 17th anniversary of diplomatic relations, 50 Vietnamese exporters and 17 conglomerates from the Korean Importers’ Association made many agreement, opening the door for other trade and investment activities.

The Korea-Vietnam Joint Trade Committee, set up on February 24 will help Korean and Vietnamese businesses to exchange information and seek out new partners and investment opportunities.

A new vision

The ambassador said that the RoK always supports Vietnam as chair of ASEAN in 2010, and is confident about the development of both bilateral and ASEAN + 3 relations. On behalf of the RoK government, he invited Vietnam to the G20 summit held in the RoK in November.

RoK always sees Vietnam an important strategic partner in its diplomatic policy and will focus on development cooperation.

RoK will increase investments in priority sectors while mornitoring the recovery of the economy after the global economic crisis in 2009.

Mr. Hwan said that Vietnam is one of the countries to receive the largest financial aid from the Economic Development Cooperation Fund (EDCF) with US$985 million invested in 30 projects by the end of 2009. Korean is also committed to raising EDCF aid to US$1 billion during the 2008-2011 period, which will focus on developing the infrastructure, dealing with climate change and an e-government project.

The total amount of RoK non-refundable aid to Vietnam since 2008 was US$17.5 million while from 1991-2009, it came to US$108.63 million

According to the ambassador, the RoK plans to provide US$300 million from the EDCF to Vietnam in 2010, US$200 million of which will be invested in the Hanoi-Haiphong express railway.

In 2010, the RoK also pledged US$19.68 million in non-refundable aids (ODA) as the RoK leaders highly appreciate the effectiveness of ODA in Vietnam. They have decided to increase the ODA by 0.25 percent of their GDP in the future.

Ambassador Park Suk Hwan: I feel responsible for turning the two countries’ relationship in to a “strategic partnership”.

As a diplomat, I will do my best to develop strategic cooperative relations and adhere to the Vietnam-Rok joint declaration, build a joint economic committee, and establish the Free Trade Agreement (FTA)

Although the Vietnamese government is making every effort to improve the investment environment for foreign businesses, there are still many difficulties for investors. The RoK embassy in Vietnam will try to iron out any snags to link the Vietnamese government and RoK businesses together.

Unlike other countries, Vietnam pays a lot of attention to sharing experiences, said the RoK President Lee Myung Bak at the Vietnam-RoK Economic Development Forum in Hanoi in October, 2009, adding that there are many things the RoK can learn from Vietnam.

Also at the meeting, the Ambassador stated there are almost 500,000 Vietnamese and RoK people visiting to each others’ countries every year. He added that there are a lot of similarities between the two countries such as culture and lifestyle.

VOV

Tags: Vietnam Korea cooperation