1. Mr. Yun Kang-hyeon, Deputy Minister for Economic Affairs of the Ministry of Foreign Affairs, together with Mr. Vu Dai Thang, Vice Minister of the Ministry of Planning and Investment of the Socialist Republic of Viet Nam, held the 17th session of the Joint Economic Committee between the Republic of Korea (ROK) and the Socialist Republic of Viet Nam in Hanoi, Vietnam, on October 23. During the session, the two sides reviewed overall achievements in economic cooperation on trade, investment, development, infrastructure, and finance, and discussed ways to step up cooperation.

° Also discussed were ways to strengthen bilateral cooperation in various fields, including agriculture, employment, information and communications technology (ICT), science and technology, and consular affairs.

2. The 17th session of the ROK-Vietnam Joint Economic Committee consisted of a review of the progress in the major fields of bilateral economic cooperation discussed at the bilateral summit held in March 2018 as well as a detailed discussion on key measures for expanding bilateral trade and investment and bolstering industrial cooperation in such areas as finance, infrastructure and agriculture.

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° The ROK side relayed to the Vietnamese side Korean enterprises’ requests for their increased presence and investment in Vietnam and asked for the Vietnamese government’s attention and support in this regard.

- The ROK side asked the Vietnamese government to cooperate in granting permits/licenses for Korean companies’ investment and development projects as well as collecting accounts receivable; supporting Korean financial institutions to smoothly build presence in Vietnam; and reducing taxes on existing investors and workers in free economic zones.

° Vice Minister Thang noted with appreciation that Korean companies’ robust investment has made the ROK the largest investor in Vietnam. He added that the Vietnamese government will pay attention to the aforementioned requests from the ROK side and render support.

- With respect to bilateral trade, the Vietnamese side asked that, in order to reduce Vietnam’s trade deficit with the ROK, the ROK increase imports of agricultural and livestock products, including tropical fruit, from Vietnam, and help enhance its agricultural competitiveness; and help local Vietnamese enterprises join global value chains, including by expanding the localization of materials and parts used by Korean companies operating in Vietnam.

° With regard to the Vietnamese side’s concern over the trade deficit, the ROK side explained that Vietnam’s trade deficit with the ROK is a structural issue in terms of trade caused by increased imports of raw and subsidiary materials from the ROK by Korean companies. It added that through bilateral cooperation on various industries, Vietnam will be able to beef up its industrial capacity and thereby reduce its trade deficit in the mid to long term.

3. The two sides noted that development cooperation between the ROK and Vietnam, the former’s core cooperative partner for official development assistance (ODA), has grown steadily with grant aid and the Economic Development Cooperation Fund (EDCF). They agreed to make efforts to successfully implement development cooperation projects in diverse sectors, including smart cities, transportation, energy, and education.

° The Vietnamese side extended appreciation to the ROK for its contribution to the economic and social development of Vietnam through its ODA assistance projects for the country.

4. The 17th session of the Joint Economic Committee is seen to have served as an opportunity to draw up the deliverables of the bilateral summit to take place on the occasion of the 2019 ASEAN-Republic of KOREA Commemorative Summit in November, to review overall progress in economic cooperation with Vietnam, the ROK’s major partner for its New Southern Policy and 4th-largest trading partner, and to further bolster bilateral economic cooperation by actively helping Korean companies in Vietnam resolve their challenges.