By UN Journal Lee Kap-soo

 

“Vietnam is a very attractive market because it's a market of 100 million people and it's an open market in formation. So a lot of sectors are being considered by businesses from Korea with such large corporations like Samsung, LG and Hanwha,” said Ambassador of Vietnam to South Korea Vu Ho.

 

In an exclusive interview with Diplomacy journal at the Embassy of Vietnam in Bukchon-dong, Seoul on Feb. 27, Amb. Vu Ho said, “In Vietnam, there is also one community that is no less important for the small and medium-sized enterprises. So all of them are trying to get something from that market in Vietnam.

 

 

“So it's a bit difficult to name which sector of the Vietnamese economy is more attractive but we have to look at it also from a new angle that the new technology is emerging such as AI and semiconductors, and other technologies for the future.”

 

Noting that Korea is the highest investor in Vietnam, the ambassador said, “Now Korea surpasses Japan, Taiwan and somewhat even the United States for the last quarter, the first quarter of 2025. Of course, in any kind of relationship, there will always be some sort of glitches that we have to look at it carefully and find a way to overcome it.”

 

He also said, “Because in all kinds of relationships, trade and investments, we always have to face a lot of challenges. The challenges may come from the outside or from the inside and we look at the world, which is changing at a rapid pace. There will be some sort of things that need to be improve.”

 

 

The following is the full-text of the Diplomacy Journal interview with Ambassador of Vietnam to South Korea Vu Ho.—Ed.

 

Question: Diplomatic relations between Vietnam and South Korea were officially formed in 1992. How has the relationship developed over the period?

 

Answer: Let me give you an overall assessment that the relationship between Vietnam and Korea started several hundred years ago. It cannot be just 33 years because if you compare the two viewpoints, the whole history of relationships and the last 33 years and so I could tend to look at it from the point of view of the history.

So if I may put it this way that the relationship between our two countries are at the highest level in the history given the fact that we had a sort of relationship like 800 years ago when some Vietnamese prince immigrated to Korea.

 

And if you look at the history of Korea, they already contributed to the development of the two countries. Also likewise, the first Korean that arrived in Vietnam is also 500 or 600 years ago.

So the trade was made in Hoi An, which is a very old town. Let’s suppose the port is just 60 kilometers away and it's an old port, I know the Korean traders arrived in the port a long, long time ago and, and then because of many historic events, our relationship went through many stages and it started to stabilize back in the 1990s.

So the last 32 years would be described as a sharp increase in the relationship between Vietnam and Korea as a whole.

 

 

Q: Please introduce the National Day (Sept. 2, Independence Day) of your Excellency's wonderful country.

A: Yes, the September 2 was a very special play in Vietnamese history. National Day in Vietnam observed on 2 September, commemorating President Hồ Chí Minh reading the Declarations of independence of Vietnam at Ba Đình Square in Hanoi on 2 September 1945.

During World War II, the Japanese occupied Vietnam and allowed the French to remain and exert some influence. At the war's end in August 1945, a power vacuum was created in Vietnam. Capitalizing on this, the Việt Minh launched the "August Revolution" across the country to seize government offices. Emperor Bảo Đại abdicated on 25 August 1945, ending the Nguyễn dynasty.

 

 

On 2 September 1945, at Ba Đình Square, Hanoi, Ho Chi Minh, leader of the Viet Minh, declared Vietnam's independence under the new name of the Democratic Republic of Vietnam (DRVN) in a speech that invoked the United States Declaration of Independence and the French Revolution's Declaration of the Rights of Man and the Citizen.

 

The day was deliberately chosen, as it was also the day Japan formally signed the document to officially surrender to the Allies, ending the World War II.

 

So it would mark a new era for Vietnam. And it's kind of a very starting point for the nation to be formed for the republic and to be developed.

 

 

Q: What is the present volume of bilateral trade between Vietnam and South Korea? In Vietnam, what kinds of industrial sectors are attractive to Korean investors?

A: In my personal opinion, trade and investment are two most important things that we have been successful in the last three decades.

If we look back at the first time when the relationship between Korea and Vietnam it was normalized back in the 1990s, the trade volume was very low.

 

 

Trade between South Korea and Vietnam has seen remarkable growth since the establishment of diplomatic relations in 1992. Initially, the trade volume was a modest $500 million, but over the past 30 years, it has expanded more than 150 times. This growth has been marked by a shift from labor-intensive products like textiles and clothing to high-value-added items such as semiconductors and wireless communication devices.

 

South Korea's exports to Vietnam last year amounted to $58.3 billion, reflecting a 9.1% increase from the previous year's $53.5 billion. Imports from Vietnam also saw a 9.6% rise, reaching $28.4 billion. Consequently, the total trade volume between the two countries last year was recorded at $86.7 billion, a 9.2% increase from the previous year's $79.4 billion.

 

 

Vietnam's trade volume with South Korea accounted for 32% of China's trade volume and 43% of the United States' trade volume with South Korea. Notably, the growth rate of trade volume last year saw Vietnam (9.2%) surpassing other major countries such as the United States (6.9%), China (1.9%), and Japan (1.1%), ranking first in growth rate.

 

South Korea's trade surplus with Vietnam last year was $29.9 billion, an increase of $2.3 billion from the previous year's $27.6 billion. This makes Vietnam the second-largest surplus country for South Korea, following the United States, which had a surplus of $55.7 billion.

 

However, we have the aim for this year 2025, 100 billion US dollars in trade. But most importantly, we have to look at another aspect of the economic operations which is the investment.

 

The Korean investment now in Vietnam is the highest, Korea is the highest investor in Vietnam. Now Korea surpasses even Japan, Taiwan and somewhat even the United States for the last quarter, the first quarter of 2025.
Of course, in any kind of relationship, there will always be some sort of glitches that we have to look at it carefully and find a way to overcome it.

Because in all kinds of relationships, trade and investments, we always have to face a lot of challenges. The challenges may come from the outside or from the inside and we look at the world, which is changing at a rapid pace. There also will be some sort of things that need to be improve.

For example, we are now in the status that Korean exports to Vietnam is higher than Vietnamese exports to Korea. So the trade balance is imbalance and that is something that I think that we will have to work together to fix it somehow from the outside. We all both of us have the largest trade partners which are the US and China. We will have to look at the relationship, the trade relationship between the US and China and that's one of the challenges of the time.

So I think there are a lot of ways to do but number one is we have to look at the structure of our friendly relationship, our investment structures.

 

Q: What kinds of industrial sectors are attractive to Korean investors?

A: You know what I've been in Korea for a year almost and from my observation is the Korean business people are very lively, very flexible, very innovative and they move a lot, move around a lot to find a way how to improve the business how to open the new market, how to get new opportunities in expanding of the business and that's one of the main characters of the core business.

So they find Vietnam a very attractive market because it's a market of 100 million people and it's an open market in formation for. So a lot of sectors are being considered by businesses from Korea with large corporates like Samsung, LG and Hanwha business groups.

And then there is one community that is no less important is the medium and small enterprises. So all of them are trying to get something from that market in Vietnam.

So it's a bit difficult to name which sector of the Vietnamese economy is more attractive but we have to look at it also from a new angle that the new technology is emerging such as AI and semiconductors, and other technologies for the future.

 

Q: What tourist attractions in Vietnam do you want to recommend to Korean tourists? Do you have any government programs to attract foreign tourists, including Koreans, to Vietnam?

A: If you look at the map of Vietnam, you will see Vietnam is a long country from the north down to the south. It's more than 3000 kilometers and running down from our border with China down to our border with Indonesia.

So it's very long land and the weathers are different from the north to the south and it's very variable. Because of the history of Vietnam, the way how people living their lives are different according to each region. So it's a very mixed country. To tell which tourist spot would be the most attractive is very difficult. You will find in Vietnam lively cities, very noisy cities like Hanoi or Ho Chi Minh City. They can find many things in which are different from Korea.

 

Q: Please tell me what was the most rewarding or happiest moment while you have been working as a diplomat.

A: There were so many events because the proudest thing would happen when you achieve something in your career. So it's very hard to tell you which one.

And by the way, I'm doing the Asian affairs for 30 years of my life so I've been witnessing it like the signing of many documents in my entire career. The pride sometimes they change from time to time the value changes because of your life.