Cooperation in Industrial Materials, Equipment and Components
The Korea Institute for Advancement of Technology (KIAT) opened the Vietnam Technology Advice and Solutions from Korea (VITASK) Center in Hanoi on Dec. 11.
The center is based on the South Korean Ministry of Trade, Industry and Energy’s official development assistance project and its purpose is to further promote bilateral cooperation in the field of industrial materials, equipment and components and for South Korean companies to join Vietnam’s national projects. In addition, the center will train engineers and professional technical consultants while running material and component performance assessment programs for Vietnamese companies.
South Korea and Vietnam held a summit meeting in 2018 and the two heads of state agreed at the meeting to establish the center for technical cooperation in the field of electronic, electrical and electric vehicle components and materials. The two countries are planning to increase their bilateral trade volume to US$100 billion by 2023. Vietnam is the fourth-largest trade partner for South Korea and the volume was US$69.2 billion last year.
At the opening ceremony on Dec. 11, the two governments signed a business agreement for joint growth in the industry as well. The signing ceremony was attended by the South Korean ministry, the Ministry of Industry and Trade of Vietnam, LG Electronics, Hyundai Motor, POSCO, etc. The agreement is to provide technical consulting for Vietnamese material, component and equipment suppliers and build closer ties in terms of mutual supply and demand.
Also, the governments exchanged notes regarding origin accumulation so that the FTA Vietnam signed with the European Union in August this year can be best utilized. According to the FTA, only Vietnamese and South Korean fabrics are regarded as Vietnamese fabrics with regard to clothing product exports from Vietnam to the European Union. The agreement is an administrative requirement for making that exception.