On the basis of the comprehensive strategic partnership between Viet Nam and South Korea, Da Nang and South Korean localities have witnessed remarkable progress in bilateral cooperation in many spheres.

During the business visit to South Korea from July 7 - 13, the Da Nang delegation, led by Secretary of the municipal Party Committee Nguyen Van Quang (middle), had a working session with Mayor of Busan City Park Heong Joon (6th, left) on July 12, 2024. Photo: HOAN VU

Great potential for Da Nang-South Korea cooperation

South Korea is currently one of the top five foreign investors in Da Nang with 278 projects worth more than US$371 million in total. In recent years, Korean partners have implemented many large projects involving in the fields of information technology, communications, hi-tech, and automation in the city.

According to Director of the municipal Department of Foreign Affairs Nguyen Xuan Binh, it can be said that the cooperative relationship between Da Nang and South Korean localities is demonstrated through 3 characteristics: comprehensive in all fields, effective in many specific programmes and still great potential to be fully tapped.

In the project "International integration and cooperation in Da Nang to 2030" issued by the municipal People's Committee on December 26, 2023, the city analysed and evaluated the advantages and potential for bilateral cooperation with Korean partners, and at the same time, proposed cooperation orientations in the coming time.

On that basis, the municipal Department of Foreign Affairs has enhanced comprehensive cooperation with Korean partners in the aspects that the city is appealing for foreign investment, including microchips, semiconductors, science - high technology, seaports, airports, tourism, and logistics.

During their business trip to South Korea in mid-July, the city delegation, led by of municipal Party Committee Secretary Nguyen Van Quang, visited and worked with partners in the field of microchips and semiconductors such as South Korea's Ministry of Trade, Industry and Energy (MOTIE), the Korea Semiconductor Industry Association (KSIA), Samsung Group, and the Pangyo Technology Valley.

In particular, the delegation coordinated with the Innovation Promotion Agency of Daegu City to organise a workshop to promote investment and connect information technology enterprises between Da Nang and Daegu.

At the workshop, Da Nang and Daegu signed 30 memoranda of understanding on developing IT products, smart education and digital copies in smart urban management, and building smart cities.

Immediately after the business trip, on July 29, Daegu opened the Daegu Business Lounge in Da Nang. The success of the business trip to South Korea showed that Da Nang is always proactive in seizing opportunities to develop its information technology, hi-tech, and semiconductor industries, thereby, opening up many cooperation chances between Da Nang and major Korean tech corporations.

Sharing at the conference on the prospects of Viet Nam-South Korea's information and communication technology (ICT) investment cooperation, hosted by the Korean Consulate General in Da Nang on August 16, Deputy Director of the municipal Department of Information and Communications Tran Ngoc Thach emphasised that Da Nang has remained magnet for foreign investors, startups and IT enterprises.

In particular, Da Nang takes lead in the country for many consecutive years in terms of the Viet Nam ICT Index on the readiness for information and communications technology development and applications, and the Digital Transformation Index (DTI).

At present, the city is laying an emphasis on building three groups of solutions on infrastructure, human resources and preferential policies in a bid to call on more businesses and investors to invest in Da Nang in the ICT field.

Also at the conference, Director of the Da Nang Semiconductor and Artificial Intelligence Centre for Research and Training (DSAC) Le Hoang Phuc said that since the beginning of 2024, DSAC has opened three IC design training classes with 39 students and 43 lecturers being trained. The city targets to have 5,000 engineers by 2030, including 2,000 chip design engineers (IC) and 3,000 packaging and testing engineers and technicians. This is a high-quality, extremely abundant human resource to meet the requirements of investors and businesses.

Not only ready in terms of human resources, Da Nang focuses on investing in infrastructure at the Software Park No. 2 to serve the field of semiconductor chip design. International fiber optic cable network, electricity and traffic infrastructure, and logistics fully meet the requirements of investors in ICT, microchips, semiconductors and artificial intelligence.

Good news for Da Nang and the driving force for the development of the city's tech industry is that the National Assembly has recently issued Resolution No. 136/2024/QH15 on the urban administration organisation and the piloting of a number of specific mechanisms and policies for the development of Da Nang. Accordingly, there are outstanding preferential policies in the fields of information technology, microchips, artificial intelligence such as policies to attract strategic investors; exempt corporate and personal income tax; attract experts and develop human resources; support innovative startups; and test new technologies under control.

Remarkable achievements

The Viet Nam - South Korea diplomatic ties are assessed to be in the best development phase since the two countries established relations on December 22, 1992. Notably, in December 2022, the two countries issued a joint statement to upgrade their bilateral relations to a comprehensive strategic partnership.

Mr. Nguyen Xuan Binh expressed that, based on the foundation of good relations between the two countries, the cooperation between Da Nang and Korean partners has become a bright spot in the general picture of the city’s international cooperation.

To date, Da Nang has set up cooperative relations with four localities of South Korea, namely Changwon (1997), Daegu (2004), Hwaseong (2008), and Jeju (2023).  

Local-level cooperation between Da Nang and South Korea has been specified from the municipal level to the district, county, department and branch levels. For instance, Da Nang’s Hai Chau District has established a cooperative relationship with South Korea’s Uiwang City, Son Tra District with Gurye District, and Hoa Vang District with Yeongyang District.

Up to now, Hoa Vang District has sent 1,593 qualified workers to work in Yeongyang District under the labour recruitment cooperation programme between the two localities.

Along with that, many cultural exchange programmes with South Korea are maintained and organised annually. In particular, the Viet Nam - South Korea Festival has become an annual cultural and diplomatic event in the city, attracting the participation of many Korean localities, and contributing to strengthening the friendly and cooperative relationship between Da Nang and Korean localities.

According to Mr. Nguyen Xuan Binh, the cooperative relationships between Da Nang and South Korean partners have achieved remarkable achievements, especially in the economic field.

South Korea is currently Da Nang's fifth-largest export market. Also, it has been the central coastal city’s leading international tourist source market.

Upon the resumption of international routes from March 2022, there have so far been 11 airlines operating direct flights between Da Nang and major cities of South Korea, with a frequency of 161 flights per week. In the first five months of 2024, Da Nang welcomed 781,192 South Korean visitors, up 26.8% over the same period in 2023.

Consul General of South Korea in Da Nang Kang Boosung shared that, in 2023, the two-way trade turnover between the two countries exceeded US$76.1 billion, making Viet Nam the 3^rd largest trade partner of South Korea. South Korea is currently the largest investor in Viet Nam with a total accumulated investment capital of US$85.9 billion.

Mr. Kang Boosung affirmed that the Korean Consulate General in Da Nang will make every effort to expand the scope of cooperation with Da Nang in new spheres such as hi-tech industry, promote friendly cooperation between local governments of the two countries, and firmly consolidate the foundation for the development of comprehensive cooperation between South Korea and Viet Nam.

Reporting by THANH PHUONG - Translating by M.DUNG