South Korea, Vietnam set to sign dozens of business deals as Lee Jae Myung visits Hanoi
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South Korean President Lee Jae Myung (left) and Vietnam's top leader To Lam at the Presidential Palace in Hanoi on April 22.
PHOTO: AFP
HANOI/SEOUL – South Korean and Vietnamese companies are expected to sign dozens of business deals on April 23, Korean media and two sources said, during South Korean President Lee Jae Myung’s visit to Hanoi.
The corporate contracts and non-binding deals will follow the signing of 12 cooperation pacts at a meeting between Mr Lee and Vietnam’s top leader To Lam on April 22, including one on South Korean investment in a new nuclear plant in southern Vietnam.
“Our two countries will strengthen co-operation in joint research and talent development in semiconductors, secondary batteries and biotechnology,” Mr Lee said after the meeting.
The deals to be unveiled on April 23 include a contract to supply rolling stock for Ho Chi Minh City’s urban rail system, he added.
Hyundai Rotem said it won orders worth about US$332 million (S$423 million) for a three-phase rail project in the city.
It is one of more than 70 pacts in industries ranging from finance, consumer goods and advanced technology to infrastructure and energy, South Korean media said, without identifying any companies.
Dozens of business agreements were expected during the visit, two people familiar with the plans confirmed. They sought anonymity as the information was not public.
Officials of more than 100 South Korean companies with operations in Vietnam are accompanying Mr Lee, following a visit to India, said officials and media.
These include Samsung Electronics, SK, LG, Lotte, POSCO and HD Hyundai, they added.
Samsung has the largest presence in the South-east Asian nation after decades of investment running into more than US$20 billion.
It has recently made progress in years-long talks with Vietnamese authorities for a possible back-end semiconductor factory, sources familiar with the discussions have said.
On April 22, Vietnam’s central bank said it had issued a licence to Industrial Bank of Korea to open a wholly owned unit in Vietnam.
Mr Lee asked Prime Minister Le Minh Hung on April 23 to help tackle issues facing South Korean businesses in Vietnam and pave the way for their participation in strategic infrastructure projects, state media said.
South Korean businesses raise issues such as access to investment incentives, tax refunds and rising wages in Vietnam, pushed up recently by a large influx of Chinese manufacturers. REUTERS
