Enhancing trade promotion between Nghe An and South Korea.

(Baonghean.vn) - On the morning of July 18th, in Vinh City, the Provincial People's Committee and the Department of Industry and Trade, in coordination with the Vietnam Chamber of Commerce and Industry (VCCI), organized the "Nghe An - South Korea Trade Promotion Forum" workshop.

Attendees included Mr. Le Hai An - Deputy Director of the Asia-Pacific Department, Ministry of Industry and Trade; Mr. Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), along with leaders from several departments and agencies, and more than 150 Vietnamese and Korean businesses.

Overview of the workshop

South Korea is a developed economy, ranking 3rd in Asia and 15th in the world by GDP (US$1.13 trillion in 2012). Along with Japan, South Korea is a leading investor in Vietnam, with a total new and increased investment capital of US$765.6 million, accounting for 22.9% of total investment in Vietnam. According to statistics from the Ministry of Industry and Trade, in 2013, bilateral trade reached US$27.3 billion, an increase of 29.4% compared to 2012. Of this, Vietnam's exports to South Korea reached US$6.6 billion, an increase of 18.8%; imports reached US$20.7 billion, an increase of 33.2%; and the trade deficit was US$14.1 billion, an increase of 41.3% compared to the previous year.

In Nghe An province, South Korea is currently the third largest import market out of 49 countries and regions worldwide (after China and Laos). In 2012, exports to this market accounted for 6.1% of the province's total export turnover; in 2013, it was 4.2%; and in the first six months of 2014, it accounted for 7.5% of the province's total export turnover. The main products exported to the South Korean market are textiles, white limestone and various types of construction stone, cassava starch, etc. Nghe An is also one of the localities attracting many South Korean businesses, currently having 12 investment projects with a total registered capital of over 60 million USD, including 11 foreign direct investment (FDI) projects in diverse sectors such as electronic component manufacturing, telecommunications equipment, food production, and entertainment projects.

These projects have made a significant contribution to export turnover to the South Korean market. Many South Korean investors, after achieving success in Nghe An, have advised and invited more South Korean businesses to invest in Nghe An and other provinces and cities nationwide. Currently, the province is also calling on South Korean investors to invest in the Quynh Lap II Thermal Power Plant in the Hoang Mai - Dong Hoi Economic Zone; the project has an investment capital of 4 billion USD, with 100% of the capital coming from investors, and is scheduled for completion and commissioning in 2015.

The Nghe An - South Korea Trade Promotion Forum provided a good opportunity for businesses in the province to update information on product outlets; strengthen service development, improve access to the South Korean market; and increase product consumption. This was especially true for key products of Nghe An such as processed wood products, seafood, cassava starch, tea, and other agricultural products. The forum also served as an opportunity for South Korean businesses to learn about and understand the investment environment in Nghe An.

Ngoc Anh