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Chairman of the Presidential Office Le Khanh Hai (R) welcomes South Korean President Yoon Suk Yeol and his wife at Noi Bai International Airport. (Photo: VNA) |
Firstly, in terms of diplomatic significance, this is the first state visit of South Korean President Yoon Suk Yeol to Vietnam, and Vietnam is also the first Southeast Asian country the President chose to visit since his inauguration in May 2022.
At the end of 2022, upon the 30th anniversary of diplomatic relations between Vietnam and Korea (1992-2022), the two countries upgraded their relationship to Comprehensive Strategic Partnership - the highest level of diplomatic relations. 2023 is the first year the Comprehensive Strategic Partnership between the two countries is implemented. Therefore, the official visit of the President highlights great significance, not only at diplomatic level, but also at the highest level of mutual trust and respect, which is strategic trust.
Secondly, in terms of economics, the visit of South Korean President Yoon Suk Yeol to Vietnam is expected to open a new chapter in Korea-Vietnam economic cooperation, not only in scale but also in depth. During the visit, Korea is to announce a US$4 billion loan for infrastructure development in Vietnam. The Korea International Cooperation Agency (KOICA) will also announce a $30 million grant-in-aid funding to promote innovations, science and technology development in Vietnam.
Accompanying President Yoon Suk Yeol are about 205 businesses, including leaders of Korea’s leading corporations such as Samsung Electronics, SK Group, Hyundai Motor Group and LG Group. This points to the pivotal role of economics as one of the important aspects in the cooperation of the two countries and also shows Korean businesses’ great appreciation for the Vietnamese market.
For Korean enterprises, Vietnam is a favorable market for business and production. According to some Korean business representatives, Vietnam and Korea bear numerous similarities, such as custom, religions, cuisine, and culture. In fact, not all markets can afford this special compatibility and advantages.
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Vietnamese President Vo Van Thuong and RoK President Yoon Suk Yeol at the official welcoming ceremony for the RoK's President and senior leaders at the Presidential Palace in Hanoi this morning on June 23 |
The Korean Business Association in Vietnam (KOCHAM) currently has about 10,000 member businesses. This is one of the largest foreign business communities in Vietnam, showing the increasing interest of Korean businesses in Vietnam. The presence of the Korean business delegation accompanying President Yoon Suk Yeol is expected to open up ample cooperation opportunities in new sectors in Vietnam, such as in the energy sector. There are already large Korean renewable energy projects in Long An and Quang Tri provinces, and Korean businesses are very interested in this field.
Thirdly, the visit also marks a new stage in the prospect of Korea-Vietnam cooperation. Currently, the leaders of the two countries have agreed to set a target of raising bilateral trade turnover to $100 billion in 2023 and aim to $150 billion in 2030. In the context that the world economy is still under pressure, the target of $100 billion this year will require great determination from the governments of both countries. Despite possessing a smaller population of 100 million people, with a smaller economic size, Vietnam is currently Korea's third largest trading partner, just after the two dominant countries - US and China, which indicates a special feature of the relationship between Korea and Vietnam.
Upon President Yoon Suk Yeol's visit to Vietnam this time, the two parties are to expand comprehensive cooperation in many other fields, and deepen cooperation. In particular, the cooperation between the two countries will not be restricted to the level of "dual benefits", but it will be upgraded to a higher level, which is "interwoven interests", with comprehensive, and effective cooperation, as well as mutual development.
