"The Vietnam-Korea Investment Cooperation Forum 2024 is a testament to the spirit of innovation and sustainable collaboration."

DNHN - For Mr. Kim Ki-mun, Chairman of KBIZ, the Vietnam-Korea Investment Cooperation Forum 2024, scheduled for November 21, is not merely an event but also a testament to the spirit of innovation and sustainable collaboration between nations.

On November 21, Hanoi will host the Vietnam-Korea Investment Cooperation Forum 2024, themed "Trust and Cooperation: Sustainable Development Strategies for Korean small and medium enterprises (SMEs)". This forum serves not only as a platform to strengthen economic ties between the two nations but also highlights Korea Federation of Small and Medium Businesses (KBIZ)'s vital role in supporting Korean SMEs and fostering collaboration with Vietnamese businesses. Business and Integration Magazine recently interviewed Mr. Kim Ki-mun to learn more about KBIZ’s contributions to the forum's anticipated success.

As an organization that has spearheaded numerous initiatives to globalize SMEs, how has KBIZ utilized its expertise to shape this year’s Vietnam-Korea Investment Cooperation Forum?

Mr. Kim Ki-mun: KBIZ has a long-standing commitment to promoting the globalization of SMEs, driven by strategic initiatives and activities. Its accumulated experience and relentless efforts have been instrumental in ensuring the success of the 2024 Vietnam-Korea Investment Cooperation Forum.

Some of KBIZ’s recent achievements include:

- In the UAE (January 2023): Organized the Baekdu Forum in Dubai in October 2023, creating a new space for SME collaboration.

- In Japan (March 2023): Signed a Memorandum of Understanding (MOU) with the Japan Small and Medium Enterprise Corporation in July 2024, laying the groundwork for bilateral business exchanges.

- In Vietnam (June 2023): Strengthened partnerships through an MOU with the Vietnam Association of Small and Medium Enterprises in September 2023 and engaged with Prime Minister Pham Minh Chinh in July 2024.

- Global Support Team (May 2024): KBIZ launched the "Global SME Support Team" with participation from major corporations, SMEs, government entities, and overseas communities. This initiative provides robust resources for Korean SMEs to expand their international footprint effectively.

The integration of international missions and initiatives like the Global Support Team underscores KBIZ's leadership in driving Korean SMEs' global integration. With KBIZ’s expertise, the 2024 forum symbolizes innovation and sustainable collaboration among nations.

What distinguishes this year’s forum from previous KBIZ-hosted events?

Mr. Kim Ki-mun: The 2024 Vietnam-Korea Investment Cooperation Forum, themed "Trust and Cooperation: Sustainable Development Strategies for SMEs," stems from discussions between Prime Minister Pham Minh Chinh and a delegation of Korean businesses in July. Strong governmental support from both nations has elevated this event to unprecedented levels in scale and quality.

This year, the forum will welcome over 500 delegates, including 350 Vietnamese and 150 Korean enterprises. The participation of senior government and local leaders further highlights the event's significance. The forum’s theme addresses pressing contemporary issues while pioneering new avenues for bilateral cooperation. Beyond a policy dialogue, it represents a transformation in collaboration between the two nations.

The forum aims to not only exchange experiences but also create new opportunities, fostering the growth of SMEs in both countries. Success stories from Korea, such as Samsung's Smart Factory model and Smart Farming solutions, will offer valuable lessons for Vietnamese businesses in enhancing production capacity and technological innovation.

Korean SMEs are also expected to seize opportunities to expand into the Vietnamese market and build sustainable partnerships. With robust support from KBIZ and the Korean government, this journey of globalization is set to achieve remarkable milestones.

NIC (Hoa Lac Hi-Tech Park) - the forum’s venue - was designed to foster an innovation ecosystem, symbolizing Vietnam's vision of making this event a cornerstone of bilateral cooperation. By incorporating cutting-edge topics like Smart Factory and Smart Farming, the forum goes beyond business opportunities to drive technology transfer and knowledge sharing between the two nations.

In conclusion, KBIZ’s unwavering commitment and innovative approaches ensure that the 2024 Vietnam-Korea Investment Cooperation Forum will leave a lasting impact on the economic and technological ties between Vietnam and Korea.

From KBIZ's experience, what do you think about the attractiveness of the Vietnamese market for South Korean investors, especially small and medium-sized enterprises (SMEs)? What strengths can these businesses leverage to enhance their presence in Vietnam?

Mr. Kim Ki-mun: The reality is that in South Korea, export businesses perform significantly better than domestic companies, with revenues 17.2 times higher and creating 5.1 times more jobs. However, the number of export businesses and the scale of exports have been stagnating. Out of 630,000 small and medium-sized manufacturing businesses, over 90% focus on the domestic market. As of 2023, the number of export companies was only 94,000, a decrease of more than 4,000 companies from 98,000 in 2019.

In my opinion, small and medium-sized enterprises that want to grow on a larger scale cannot rely solely on the domestic market. The size of the domestic market is shrinking due to low birth rates, an aging population, and reduced purchasing power caused by high inflation. Recently, the strong rise of cross-border e-commerce companies like China's Temu has forced domestic companies to compete directly with foreign businesses within the local market. Given these factors, globalization is an inevitable trend.

The international market, including Vietnam, offers significant opportunities due to the Hallyu wave and the competitive quality of products made by South Korean SMEs. Most popular products in Vietnam, such as K-food (Korean food) and K-beauty (Korean beauty products), are produced by SMEs or are products of large corporations that are outsourced (OEM) to specialized businesses.

Vietnam is currently the third-largest export market for South Korean businesses, after China and the United States. Notably, out of 8,682 South Korean companies in Vietnam, 950 are large enterprises, 5,175 are SMEs, and 2,557 are individual businesses (according to the Export-Import Bank of Korea, December 2023). This shows the strong attraction of Vietnam, thanks to:

- A young and abundant labor force

- Many free trade agreements (FTAs) that provide tariff advantages

- Incentives for foreign investors

- The cultural similarities between the two countries, the proximity, and the support from the Hallyu wave.

These factors make it easier for South Korean businesses to integrate and thrive in Vietnam. Especially, as Vietnam continues to deepen its integration into global supply chains, South Korean SMEs have the opportunity to leverage the Hallyu wave and the support from the overseas Korean business community to expand their business networks. This not only helps South Korean businesses effectively enter the Vietnamese market but also contributes to the sustainable development of Vietnam’s economy.

In addition to organizing major events such as the Vietnam-Korea Investment Cooperation Forum, what other notable programs does KBIZ offer to support South Korean small and medium-sized enterprises (SMEs) in expanding internationally?

Mr. Kim Ki-mun: KBIZ has continuously expanded its support initiatives, providing opportunities for South Korean SMEs to effectively and sustainably access international markets. The year 2023 marked several outstanding achievements, solidifying KBIZ's pioneering role in promoting globalization.

At the 2023 Global Korean Entrepreneurs Conference, KBIZ not only organized the event but also participated as the honorary chairman, achieving impressive results.

Building on this success, KBIZ has implemented several initiatives to support SMEs in participating in major global events:

- The Korean Festival in Los Angeles (September 2024): This important business-cultural event allows South Korean companies to showcase their products and services while seeking strategic partners in the U.S. market.

- The Korean Entrepreneurs Exhibition in Austria (October 2024): This event offers South Korean businesses the opportunity to access and expand into the European market, a region full of potential but also demanding high standards of quality and innovation.

With a focus on sustainability, KBIZ will support the organization of the Korean Entrepreneurs Conference in the U.S. (Atlanta, April 2025). This event will not only provide new cooperation opportunities but also help South Korean SMEs develop strong strategies for deeper market penetration in the U.S., one of the most competitive and demanding markets in the world.

With its diverse activities and strong support, KBIZ continues to establish itself as a trusted partner for South Korean SMEs on their journey of globalization. These ongoing efforts not only bring economic value but also contribute to building the image of South Korean businesses as professional, innovative, and full of potential on the international market.

Thank you for these discussions!

Bao Bao