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| Consul General of the Republic of Korea Kang Boosung, speaking in Đà Nẵng City. — Photo courtesy of the Consulate General of the Republic of Korea |
The Republic of Korea (RoK) officially inaugurated its Consulate General in Đà Nẵng in 2020, aiming to boost tourism and investment between RoK and central Việt Nam.
It was the second RoK Consulate General to be opened in Việt Nam, following the one in HCM City.
The office, located in Ngũ Hành Sơn District, covers administration across Đà Nẵng, Quảng Nam, Quảng Ngãi and Thừa Thiên-Huế. It aims to promote tourism and investment connections between world heritage sites in central Việt Nam with RoK’s popular destinations including Jeju Island, Incheon and Seoul.
Kang Boosung, Consul General of the Republic of Korea in Đà Nẵng City, shared details of the two countries’ relationship with Việt Nam News.
Can you give us some details about the current investment between the RoK and Đà Nẵng, as well as other local sites in central Việt Nam?
The Korean Dentium company, a high-quality implant producer, has become the largest Korean investor in hi-tech equipment at the Đà Nẵng City’s Hi-tech Park. The company has expanded its production by introducing the second factory at the city’s Hi-tech Park, after the first one was debuted in 2019.
The successful investment of Dentium results from a smooth and friendly investment environment of Đà Nẵng and efforts in technology improvement courses of Korean businesses.
Meanwhile, KP Aero Industries has been completing construction of a factory at Đà Nẵng Hi-tech Park, to produce and supply various parts for the aircraft industry.
The official operation of KP Aero Industries would help contribute to high-quality human resources and the establishment of aerospace industries in Việt Nam.
The Korean investor had earlier inked an agreement on support and investment promotion, education, manpower employment and research with partners including the Đà Nẵng Hi-tech Park and Industrial Zones Authority, the Đà Nẵng University of Science Technology under Đà Nẵng University and Korean Air.
KP Aero Industries produces and supplies parts for Boeing, Airbus and Korean Air.
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| The Consular General of the Republic of Korea welcomes visitors and guests at the National Day of the RoK in Đà Nẵng City. — Photo courtesy of the Consulate General |
In Quảng Nam Province, the Star Group Industrial (SGI) company – a rare earths firm in Korea – has been investing in the central province with a hope of promoting the strategic partnership in terms of core material mining exploitation.
Doosan Vina, in Quảng Ngãi Province, a typical industrial manufacturer of Korea, has expanded its production by developing an offshore wind power project – a renewable energy and environment-friendly investment one.
Doosan Vina has also partnered in improving the living standards and incomes of local people in Quảng Ngãi Province through continuous Corporate Social Responsibility programmes.
Doosan Vina, together with Chung Ang University Hospital, has been implementing charity medical care programmes for local communities since 2009. I was so impressed with the programme when I visited the charity healthcare project.
Doctors and nurses at the Quảng Ngãi Province General Hospital were so happy when receiving hi-tech medical equipment donated by the Doosan Vina-Chung Ang University Hospital programme, as well as I am touched to see that Korean medical staff were giving treatment to local people during the programme.
RoK investment has ranked within the top five to Đà Nẵng for years. What other fields of investment are showing potential and what are the top priorities from the RoK when investing in central Việt Nam?
RoK investors have been reviewing how to raise new investments or expansion of investment projects in Việt Nam. Đà Nẵng and the central region have been an option for RoK business expansion plans.
However, some RoK enterprises complained that logistics costs in central Việt Nam remain quite high. It’s because the number of businesses operating in the region is still limited, while input material is bought from northern and southern provinces, so any cost reductions from other companies could not be shared.
The RoK Consulate General understands that the Government of Việt Nam and the leadership of Đà Nẵng have kept eyes on the plan of expansion investment among RoK investors in the global trending semiconductor and AI industries. We believe that the promotion and expansion of investment in new fields and maintaining the traditional production industries, as well as service and tourism, are an important factor in the development of Đà Nẵng City, as well as RoK – Việt Nam relationship.
Hosting hi-tech and new industries investment projects at localities in Việt Nam depends on stable power supply, good preparation of skilled and quality manpower and global supply chains. The Government of Việt Nam has been building a long-term plan and preparation for hosting hi-tech industries, semiconductor and AI investment projects. We think that these investment attraction plans given by central Government and local authorities would help promote bilateral co-operation and investment.
The RoK has been revving up for investment expansion plans in central Việt Nam, especially in hi-tech industries. Two major conferences – the Việt Nam-Korea Extended Investment forum organised in June and the Việt Nam-Korea Digital Forum in August – were examples for positive moves for hi-tech industries investment expansion of the RoK in Việt Nam and central region.
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| Made-in-Việt Nam cranes are produced at RoK-invested heavy industries complex of Doosan Vina. — Photo courtesy of Doosan Vina |
What’s the biggest difficulty RoK businesses face while doing investment in central Việt Nam?
Despite various barriers in different sections, RoK investors all have an obvious hope for the administrative reform process at localities.
We often receive complaints from RoK businesses in delays granting different certificates or permission papers from local governments and businesses would suffer losses if certificates or permission papers come late just one or two days. It also would result in delayed product delivery deadline and businesses will lose their trust to customers and badly impact future transactions.
We acknowledge that some permissions had to wait for approval by the central Government, but we do hope that local authorities should improve and strengthen the cooperation with central Government in dealing with the delay.
It’s clear that satisfaction of already invested businesses in Việt Nam and central region will have a strong impact to new investors who are seeking investment opportunities in Việt Nam.
Of course, some delay paper processes are caused by mistakes from businesses or lack of information and we have been working hard in providing full information to RoK investors.
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| A doctor from Chung Ang University Hospital gives a medical check to a woman in a charity medical examination and treatment for community in central Việt Nam. The programme has been oganised since 2009. — Photo courtesy of Doosan Vina |
How can we shape the future friendship and cooperation between RoK cities and localities in central Việt Nam?
The friendship and cooperation ties between Đà Nẵng City and cities of the RoK are very important. Efforts in sharing strengths with every local from the two countries and jointly seeking actions in possible cooperative sectors will be a key solution to fruitful cooperation between Việt Nam and the RoK.
Đà Nẵng City and Daegu had built links as twin cities for 20 years, while more friendship ties have been developed among districts of Đà Nẵng City and RoK cities and provinces of Uiwang, Yeongyang and Gurye.
The boosting of deals at grassroots authorities between Đà Nẵng and the RoK will be a key base and positive energy source for an overall comprehensive strategic partnership of Việt Nam and the RoK in terms of good understanding and respects to culture of the two countries, and people-to-people exchange among central regions and Korean people. We commit to supporting for wide and deep cooperation among local authorities of the two countries. — VNS
This article was first posted on Vietnam News