Korean businesses expected to grow in Vietnam

17:04 | 02/02/2017 Companies

(VEN) - Vietnam Economic News reporter The Vinh spoke with the Deputy Chairman of the World Federation of Overseas Korean Traders Association (World-OKTA), Jo Hyung Taek, about the organization’s operations in Vietnam.

korean businesses expected to grow in vietnam

Could you tell us about World-OKTA’s operations in Vietnam?

World-OKTA was established in 1981. The organization currently has 137 offices in 70 countries. In Vietnam, World-OKTA’s office was opened in 2013 in Ho Chi Minh City with 100 trader members from the Republic of Korea (RoK). Like its counterparts in other countries, World-OKTA Vietnam’s objectives and tasks are to promote the RoK’s trade development by bringing Korean goods to foreign markets.

World-OKTA members always exchange and share production and business information to help each other develop and contribute to forming RoK economic communities overseas.

Are RoK businesses in Vietnam the focus of World-OKTA Vietnam?

Information and business networks are very important for doing business, especially doing business abroad. Most World-OKTA Vietnam members are RoK enterprises that have been operating in Vietnam for a long time, so they know Vietnam very well and have useful information and business networks to share with each other.

World-OKTA benefits all members doing business in Vietnam, especially those in the same field of business.

There are many other organizations promoting RoK businesses, including the Small and Medium Business Corporation (SBC) and the Korea Trade-Investment Promotion Agency (KOTRA), among others. SBC and KOTRA were founded by the RoK government to promote the RoK’s small to medium-sized businesses.

KOTRA provides assistance using their workforce, while SBC performs support activities through professional private units in local countries, called Glolink. My Bizwell Company is a Glolink in Vietnam.

Glolinks are businesses that assist RoK companies wanting to invest, do business and export goods to a new market, by providing them with legal assistance for investment and business establishment, finding distributors and business partners, and technical and financial aid.

How has the Vietnam-Korea Free Trade Agreement (VKFTA) influenced Vietnam-RoK trade?

More and more RoK companies are interested and intending to invest in Vietnam since the VKFTA was signed. I believe investment from the RoK will gradually increase in the future and so will bilateral trade.

What changes should be made to encourage RoK investors?

I understand the Vietnamese government’s efforts to simplify administrative procedures and adopt policies to improve the climate for investors. However, enterprises with foreign investment still face many difficulties in doing business in Vietnam.

Usually, it takes investors a longer time than they expect, and at a higher cost. For example, customs procedures remain very complicated, while many regulations and procedures need to be made clearer. Most enterprises with foreign investment want specific and true information about laws and policies governing their operations in Vietnam.

The Vinh