A major diplomatic visit by South Korean President Lee Jae Myung to Vietnam is poised to generate substantial business activity, with Korean media and sources indicating that numerous commercial agreements will be finalized Thursday.
The business arrangements follow Wednesday’s signing of 12 cooperation agreements between Lee and Vietnamese leader To Lam, which included a significant deal for Korean investment in a nuclear power facility planned for southern Vietnam.
“Our two countries will strengthen cooperation in joint research and talent development in semiconductors, secondary batteries and biotechnology,” Lee stated following his meeting with Vietnamese officials.
Among the business deals expected to be announced is a contract for providing train cars for Ho Chi Minh City’s public transit rail network, according to Lee’s remarks.
This agreement represents just one component of what Korean media reports describe as more than 70 business arrangements spanning finance, consumer products, cutting-edge technology, infrastructure development, and energy sectors, though specific company names were not disclosed.
Two individuals with knowledge of the visit’s agenda, who requested anonymity due to the sensitive nature of the information, confirmed that multiple business deals were anticipated during the presidential trip.
Lee’s delegation includes representatives from over 100 Korean companies that maintain operations in Vietnam, following his earlier diplomatic stop in India, according to official sources and media reports.
The corporate delegation features major Korean conglomerates such as Samsung Electronics, SK, LG, Lotte, POSCO Holdings, and HD Hyundai.
Samsung maintains the most significant business presence among Korean companies in the Southeast Asian country, having invested more than $20 billion over several decades of operations there.
The technology giant has recently advanced in ongoing negotiations with Vietnamese officials regarding a potential semiconductor manufacturing facility for back-end processing, according to sources familiar with the discussions.
Vietnam’s central banking authority announced Wednesday that it had granted authorization to Industrial Bank of Korea to establish a fully-owned subsidiary within the country.
During Thursday meetings with Prime Minister Le Minh Hung, Lee requested assistance in addressing challenges faced by Korean enterprises operating in Vietnam and sought support for their involvement in important infrastructure development projects, state media reported.
Korean companies operating in Vietnam have raised concerns about various business challenges, including difficulties accessing investment incentives, delays in tax refund processes, and increasing labor costs driven partly by a significant influx of Chinese manufacturing operations.
