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VIETNAM-KOREA ECONOMIC RELATIONSHIP BOOSTED


Vietnam, the country that has successfully overcome the aftereffect of long-term warfare and backward agricultural economy, is now positively developing the market economy initiated by the "Doi Moi" starting from 1986 and is opening market to foreign investors. For continuous economic development, Vietnam has recognized the importance of cooperation with international community with its joining the World Trade Organization (WTO) in November 2006, and successfully hosting the 2006 Asia Pacific Economic Cooperation (APEC) summit conference in Hanoi. By these effects, Vietnam got the most attractive attention to many global companies as the highest potential market among the South-East Asia countries.
Vietnam and Korea established official diplomatic relationship in 1992 and the two countries have just celebrated the 15th anniversary of the diplomatic ties on December 22, 2007. Two countries now are developing an amicable cooperative relationship under the frame work of Comprehensive Partnership in the 21st Century initiated by President Tran Duc Luong and President Kim Dae Chung during the state visit by President Luong to the Republic of Korea in 2001. As a result of the open-door economic policy under the framework of Doi Moi process, trade and investment scale expended significantly and the relationship of the both nations quickly improved. For instance, trade scale between two nations which was only about USD $ 0.5 billion in 1992 has been increased to more than USD $6 billion in 2007.
Vietnam has many attractive factors to Korean investors. First of all, Vietnam is an emerging market because of its political stability and economic fast development while there are economic instability and business overheating in other Asian countries. Second, Vietnam has a lot of similarities with Korea in history, culture, custom, and personality etc. Moreover, Vietnam has abundant natural resources such as coal and iron, and possesses inexpensive, diligent, excellent manpower. Finally, Vietnam has relatively large scale of domestic market with a population of over 84 million people and it can also act as a bridge to huge South East Asian markets of 500 million consumers. The Vietnamese Government has set a clear and determined target that the whole economy and society to be modernized and industrialized by 2020. In doing so, Vietnam is very much welcoming and facilitating large scale of foreign investment on the basis of mutual interest of Vietnam and foreign investors. As Vietnam has greatly improved the investment environment, particularly the infrastructure and legal system, most of the foreign investment projects have been doing very well. Among the foreign investors, the Korean businessmen are the most successful. In the year 2007, Korean investment in Vietnam ranked No.1 with more than US$ 4 billions. /. 

Created by tungph
Last modified 23-01-2008