President Park Geun-hye of Republic of Korea and Vietnam’s top leaders, including President Truong Tan Sang and Prime Minister Nguyen Tan Dung, recently had discussions regarding the economic cooperation between two countries, particularly measures how to bolster future economic ties. Currently, Vietnam has huge potential in developing further both within its own country and internationally. The Korean government will be working with the Vietnamese in order to increase its two way trade volume to US$ 70 billion 2020.
Since diplomatic relations was established 22 years ago, Korea and Vietnam have shown remarkable growth in many fields including economy, culture, and society. Currently, over 3,000 Korean companies have moved branches and factories into Vietnam, employing over 600,000 Vietnamese. Vietnam’s Ambassador to Korea, Pham Huu Chi sat down for an interview with Korea IT Times to talk about the cooperation and exchanges of two countries.
Ambassador Chi was very positive when describing Korea-Vietnam relations noting how relations over the past 20 years have “been developing dynamically and effectively in many fields such as political and economic, social and cultural, defence and security, scientific and technological, education and training.”
He was specifically full of praise for Korea’s current president who made a benchmark visit to his home country last year. Since that visit, “Korea becomes now the 3rd largest trade partner of Vietnam next to China, US while last year total trade between two countries reaches to US$ 27 billion. Korea becomes also a 3rd largest investor of Vietnam while total amount of investment from Korea reaches about US$ 30 billion last year.”
Nowhere has this increase been more profound than in smartphone production. Samsung has 2 of its largest factories in Vietnam which produced over 120 million smartphones last year, about 60% of Samsung’s global productions. As Mr. Chi puts it this is a 2way relationship, “Vietnam is not only a manufacturing country of Samsung smartphone but also a highly consuming country for Samsung smartphone while almost of Vietnamese, particularly those of young generation use Samsung smartphone because they prefer Korean smartphone style.”
While some have been critical of the trade imbalance between the two countries, Ambassador Chi didn’t quite see it as a large problem in short term. “Basically,” he says, “the trade imbalance comes from supply and demand in two countries’ business circle.” While Vietnam is flooded with a lot more Korean products than Vietnamese products in Korea the “products are very much likable to Vietnamese in general.” However, Ambassador Chi is of the view that “in medium and long term, the two sides should find ways to gradually reduce the trade imbalance”.
A point that was brought up by the Ambassador was the fact that “Many Korean companies have exported machineries, materials, parts, and equipment for their production bases in Vietnam that contributing to the large trade surplus from Korean side.” Not only does this equipment and the companies who bring them provides “lofty growth of Vietnam economy,” they are also key in job creation for the local Vietnamese.
As a variety Korean products, from cars, trucks, buses, electronic products to Ginseng, shoes and other consumer products including cosmetic products, are extremely popular in Vietnam, Vietnamese products have been on the Korean market more and more but they should be increased further. Together with directly export of agricultural and fishery products to Korea, Mr. Pham Huu Chi hopes there will be “more Korean investment in food processing and supportive industries in Vietnam and the products will be exported back to Korea.”
Basically he breaks it down that Vietnam is the perfect situation for the “Korean businessmen” in terms investment and production because “In Vietnam, it enables Korean investors to spend lower labor costs and provide their children a good educational environment along with safe and likable Korean community systems such as Korean community churches, restaurants, markets, etc.” Particularly Koreans can play golf all year round and there are more and more beautiful but challenging golf courses developed by Koreans in Vietnam.
He continues, "Parents are often passionate in Vietnam so the development of the country's education is very important. For example, HANSOL Education contains all local content. Localization of a HiVNtalk SNS system has been developed to supply further improvement of educational development."
Korea is home to 120,000 Vietnamese, half of which are those married to Korean nationals. In light of this and the inevitable multicultural children that will end up from these marriages, it is Ambassador’s wish that the “Korean government and its agencies continue to pay more attention to establishment of multicultural policies, especially in areas of education, healthcare, immigration and etc.” “Vietnam and Korea now have become countries-in-law and we have to care more about our sons-in-law, daughters-in-law and their children”, he said.
He goes on to say, “As multicultural diversity becomes more common in Korea, it is recommendable for Korean society to give more interest to multicultural families. For example, if Korean government establishes multicultural care center for families and their children, it might be a good help for various multicultural people and also build up stronger ties between Korean and Vietnam.”
Finally, when Mr. Chi was asked to describe Vietnam for the tourist it was not surprising that he had a lot of advice to give. The country has 4000 years of historical and cultural traditions with recognition from UNESCO. Also it is world renowned as a top travel destination with many iconic sites.
“In the North of Vietnam, there is Ha Noi Capital –“the City of Peace” – with more than 1,000 years of history, including Van Mieu or Temple of Literature, the country’s oldest university, built in 1070, and the Thang Long Royal City which has been recently recognized by UNESCO as the World Cultural Heritage. Also, tourists should not forget to visit Dong Van Rock Highland, Bich Dong Grottos in Ninh Binh province and Ha Long Bay- one of the world’s natural heritages and world’s seven wonders of nature.“
“In the Central, Phong Nha Ke Bang Grotto in Quang Binh province, the ancient capital of Hue, the old quarters of Hoi An, the Cham tower are all the World’s heritages; Da Nang City, Nha Trang, Phan Thiet are famous with more than 1,000km of sea beaches.”
“In the South, the tourists can visit Ho Chi Minh City, former Sai Gon, Vung Tau, and Cuu Long River delta which is famous with its beautiful landscape and is the big “rice basket” of Vietnam. Tourists can also visit the famous 250km long Cu Chi Tunnel, Ba Na Hills and Da Lat city, which is 400km north of Ho Chi Minh City and is located at the height of 1,500m above sea level with pleasant climate around the year. Vietnam’s first golf course is located here, which was built in 1930 and considered one of the most beautiful golf courses in Vietnam.”
