By Kim Yon-se
Staff Reporter
Seoul and Hanoi have agreed to expand economic and cultural cooperation, the presidential office said, Wednesday.
In a summit at Cheong Wa Dae, President Roh Moo-hyun and Nong Duc Manh, secretary general of the Vietnamese Communist Party, signed a joint declaration celebrating widening bilateral ties and promising efforts to forge mutual, complementary relations.
In particular, the two leaders agreed to activate interchange in information-technology (IT) and make efforts to resolve bilateral trade imbalances.
The Vietnamese leader said he hopes more Korean companies will make large-scale investments into his country.
``This summit will contribute to further strengthening our bilateral partnership,'' Roh told Nong.
Roh also said he is convinced that the relations will be closer if more opportunities are provided for Korean companies to participate in Vietnam's development projects.
The President cited the indices which showed that bilateral trade has increased about 10 times in 15 years and South Korea has become the largest investor in Vietnam.
Expressing his gratitude toward Manh for Hanoi's supporting of the Oct. 4 inter-Korean summit accord and progress in the six-way talks, Roh said, ``I've heard that Vietnam was the most active in helping adopt a United Nations resolution supporting the summit between South and North Korea.''
Bilateral trade jumped $4.85 billion last year from $490 million in 1992, while South Korea's accumulated investment in Vietnam reached over $11 billion as of October this year, according to the Ministry of Foreign Affairs and Trade.
More than 1,000 Korean enterprises are actively seeking business and investment opportunities in the Southeast Asian nation, creating over 200,000 jobs there.
More than 500,000 South Koreans are staying in Vietnam. About 430,000 South Korean tourists visited the country in 2006 alone.
Foreign Ministry officials say that more and more Korean investors are turning their eyes to Vietnam from China for business opportunities, therefore their economic relationship will continue to grow over the next few years.
The growing cooperation comes as Vietnam seeks to modernize its economy, according to Korean government officials.
Both countries are increasing cooperation in areas of information-technology and other high-tech industries. Vietnam has also been keen on increasing cooperation in Korea's key sectors of shipbuilding, steel, chemicals, automobiles, infrastructure development and construction.
The Vietnamese government also places importance on strengthening cooperation in labor-intensive small and medium-sized enterprises in Korea, since Vietnam has a competitive labor force and offers low-priced raw materials.
The two countries have been actively engaged in economic activities through various channels, including the Asia-Pacific Economic Cooperation forum.
The former communist state became the 150th World Trade Organization member this year, and its membership is expected to increase trade opportunities.
Korean exports to Vietnam have been climbing in recent years, but their market share has been declining, signaling a need to increase the competitiveness of domestic products, a report said.
From construction to financial companies, Korean businesses are poised to further expand their presence in the Southeast Asian nation.
Faced with intense competition in the domestic market, Korean financial services companies, including Kookmin Bank, have been tapping emerging markets including Vietnam for expansion. They are focusing more on high value-added services, such as investment banking, as a new growth area.
Major Vietnamese imports to Korea include electronic goods, machinery, textiles, minerals, coal, agriculture and marine products, especially fish, coffee, crude oil and tropical fruit.
Both countries are also active in oil development. The Korea National Oil Corp. and SK Corp., for instance, are currently involved in a joint oil project. The Vietnam government said it hopes to increase exports to $10 billion by 2010.
Vietnam's close relationship with North Korea could be another reason for Seoul to further improve its ties with Hanoi.
Last month, Nong visited North Korea, the second visit by a Vietnamese leader in 50 years since the visit by President Ho Chi Minh in 1957.
During the visit, North Korean leader Kim Jong-il accepted an invitation to visit Vietnam in the future and the two leaders agreed to expand their economic, cultural and educational cooperation.
The two nations went through a strained relationship in the 1960s and 1970s after South Korea dispatched troops to the Vietnam War.
Close ties between Vietnam and North Korea had kept South Korea at a distance. But after the Soviet Union collapsed in 1991, the relationship rapidly changed, culminating in diplomatic recognition the following year.
The fact that North Korea recognizes Vietnam as a model in developing its economy makes South Korea's relationship with Vietnam even more important, because Vietnam could help break down barriers with the North.
Thus, international experts have been urging the two nations to continue jointly developing their relationship to foster peace and prosperity on the Korean Peninsula and the region.
Since a 2001 summit in which the two countries agreed to forge a comprehensive 21st century partnership, they have concluded a set of agreements to promote trade and investment, prevent double taxation, and increase cooperation in the airline and shipping sectors. The summit took place between former South Korean President Kim Dae-jung and then Vietnamese President Tran Duc Luong.
As for tourism, Seoul and Hanoi signed an accord on working closely to establish tourism offices in each country.