Vietnam wants to soon become center of global value chain: PM

By Anh Minh   July 30, 2022 | 04:57 pm PT
Vietnam wants to soon become center of global value chain: PM
Prime Minister Pham Minh Chinh (L) shakes hands with a leader of a South Korean business in Hanoi, July 30, 2022. Photo courtesy of Vietnam Government Portal
Prime Minister Pham Minh Chinh has called on South Korean businesses to expand investment to help Vietnam soon become a center in the global value chain.

Vietnam’s top priority at this time is to control inflation, stabilize the macroeconomy, and fight recession and recover the economy, Chinh said at a Saturday meeting with South Korean businesses in Hanoi.

He said he hoped South Korean businesses would prioritize expanding investment in Vietnam, especially in the hi-tech field and create favorable conditions for Vietnamese companies to join the value chain.

This will contribute to "making Vietnam soon become a center in the regional and global value chains," he said.

Vietnam also encourages the development of clean and renewable energy as it seeks to promote cooperation with South Korea to establish large energy centers that would help achieve the country’s goal of carbon neutrality by 2050 and develop a transparent and competitive energy market, Chinh said.

During the meeting, South Korean businesses made a series of recommendations on tax incentives, electricity planning, a pilot mechanism for direct electricity purchase and sale and solutions to build and develop electric vehicles.

Minister of Industry and Trade Nguyen Hong Dien affirmed that Vietnam "ensures there is no shortage of electricity in 2022 and 2023, especially in industrial and production zones" although there might be partial interruptions due to hot weather.

Earlier this month, the power system experienced voltage fluctuations, resulting in power outages in some northern localities that host industrial zones and production facilities operated by South Korean giants.

South Korea is currently the largest FDI partner in Vietnam, investing in 19 economic sectors in 59 provinces and cities with 9,383 projects and total registered capital of more than US$79.8 billion.

South Korea is currently Vietnam's third largest trading partner, with import-export turnover last year reaching $78 billion, 150 times higher 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 about $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.

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