09:27 | 01/06/2016 Investment
(VEN) - The Ministry of Industry and Trade recently held a seminar with the Embassy of the Republic of Korea in Vietnam to hold a seminar on South Korean companies and high-value exports. Problems facing South Korean businesses during their investments in Vietnam were discussed and remedies were addressed at the event.
Deputy Minister of Industry and Trade Tran Quoc Khanh
Vietnam has received almost 5,000 South Korean direct investment projects valued at US$44.9 billion. The Republic of Korea leads the 110 countries and territories investing in Vietnam.
Despite tremendous investment in the country, many South Korean businesses still face difficulties during their operations, according to the Korea Chamber of Business in Vietnam (Korcham). Specifically, many Korean investors in Vietnam are required to take the printed C/O to the Vietnamese office for stamping, rather than using certificates of origin (C/O) with electronic signatures, wasting time and money.
Korcham Chairman Ryu Hang Ha proposed that the Vietnamese government acknowledge electronically-signed C/Os in accordance with the commitments in the signed Korea-Vietnam Free Trade Agreement.
According to the General Department of Customs’ Department of Customs Control and Supervision Deputy Director Ngo Minh Hai, Vietnam accepts electronic stamps and signatures in compliance with the principle on the origin of goods under the ASEAN-Korea Free Trade Agreement and the Korea-Vietnam Free Trade Agreement. He said in cases where South Korean businesses face this kind of problem, they should notify the General Department of Customs to ensure the problems are resolved.
Apart from customs difficulties, Korcham also said that South Korean companies need to buy domestic materials to substitute imports for production. However, Vietnam only has a small number of support industry businesses and South Korean companies do not have a list of Vietnamese support industry enterprises in Vietnam. For this reason, the Republic of Korea proposed that Vietnamese authorities provide this kind of list for South Korean companies in order for them to order components for their production.
The Ministry of Industry and Trade’s Export and Import Department Deputy Director Tran Trung Hai said that the Ministry of Industry and Trade will launch a series of events to connect Vietnamese support industry businesses with South Korean companies. For example, the ministry and the Samsung Group to organize a workshop on support industries to connect Samsung with Vietnamese support industries. In the near future the ministry will launch programs to create links between businesses of the two countries helping domestic businesses meet South Korean companies which need support industries.
However, Tran Thanh Hai suggested that South Korean companies outline the criteria for their products to Vietnamese support industry businesses in order for them to understand and produce appropriate products.
Deputy Minister of Industry and Trade Tran Quoc Khanh said that the Vietnamese government appreciated South Korean companies for their contribution to socioeconomic development in Vietnam. He also said that Vietnam will provide the best conditions for them to invest in the country. Tran Quoc Khanh underscored the government’s top priority was to increase added value of exports. For this to happen, Vietnam wants South Korean companies to pay attention to support industries in the country, while increasing their links with the domestic business sector to help it grow.