Korea-Vietnam Economic Support Committee (KVECC) Chairman: Korean enterprises must grasp this to successfully enter the Vietnamese market

DNHN - Over the years, Business & Integration Magazine and the Korea-Vietnam Economic Support Committee (KVECC) have constructed a bridge to bring the two nations' enterprises closer together, allowing them to mutually develop and produce important values. On the occasion of the 30th anniversary of the Vietnam-Korea friendship, Business & Integration Magazine interviewed Mr Kwon Jae Haeng, Chairman of KVECC.

Reporter: The Korea-Vietnam Economic Support Committee (KVECC) is well-known for bringing many enterprises to the Vietnamese market. So, how do you view the parallels between social life and corporate culture in Vietnam and Korea? What are the parallels and differences between Korean enterprises in Vietnam and those in other parts of the world?

KVECC President: Because Vietnam and Korea have a long history inspired by Confucianism, Korean and Vietnamese firms have very similar cultural origins.

We all know, however, that despite the similarities, there are distinctions. As a result, corporate localization initiatives must be properly considered.

It is much easier to invest and learn about the market here after you grasp the culture and psychology of the locals. To be able to do so, Korean enterprises like ours must plan ahead of time and perform considerable research.

Because of the comparable culture, Korean enterprises investing in Vietnam enjoy several benefits over other nations. For example, Korea has enterprises investing in Western countries, but the adaption period is longer and more challenging owing to cultural differences.

Furthermore, as compared to other nations, Vietnamese employees are highly skilled and hardworking. This is also one of the benefits that encourage Korean companies to invest more in Vietnam.

Reporter: How do you estimate the possibilities of Korea-Vietnam economic collaboration, both in terms of degree, scale, shape and substance, and cooperative direction, based on the aforementioned assessments?

KVECC President: Up to today, Vietnam-Korea's economic development has been characterized by a high level of investment and development. In the future, we will be more proactive and focused on generating higher-quality products.

I anticipate that many changes will occur in the domains of investment, collaboration, and institutions in the future years to enable the two nations' enterprises to become closer together. I hope the government would develop simpler and more accessible policies for international partners, particularly for us in Korea.

Reporter: What do you believe Vietnam and Korea should do, as governments, corporations, and citizens, to promote economic cooperation?

KVECC President: Our organization, KVECC, was founded in 2019 to provide guidance and link Korean enterprises to Vietnam. We recently visited many provinces in Vietnam, speaking with leaders and company owners to better understand the province's goods and enterprises; if firms desire to collaborate, we can establish a relationship and provide help.

I believe that through establishing exchanges between the government and industry, we will be able to better understand what we need and how to work together.

I believe that small and medium-sized businesses have not grown and have not concentrated on investment because they have not been able to contact overseas investors or have not had the chance. Currently, the Korean Associations of Small and Medium Firms in Vietnam are organizing a variety of events to link small and medium enterprises in the two countries, however, the solutions and activities they provide may fall short of what businesses want.

Our KVECC provides guidance when investing in Vietnam and ASEAN, allowing SMEs to join the market smoothly. I also joined several organizations in Korea's major cities and districts to better understand business. We also talk about how to better grasp how things work, so the tasks I present will be more in-depth. Small and medium-sized company groups that collaborate will achieve greater success in the future.

Thank you for your interview; I hope that in the future, KVECC will continue to build long-term collaboration connections for many enterprises in both Vietnam and Korea! 

Ha Linh