Bac Ninh actively promotes economic cooperation with the republic of korea during the covid-19 pandemic

Korea is Vietnam’s leading partner in a wide range of sectors, while Vietnam is Korea’s key partner in its New Southern Policy. On the basis of the relationship between the two countries, at the local level, Bac Ninh province pays special attention to boosting economic cooperation with Korean partners in all fields despite the effect of the Covid-19 pandemic.

Since its outbreak in early 2020, the Covid-19 pandemic, which is still very complicated and unpredictable, has widely and extensively affected all countries in the world. Most economies, even great powers such as the USA, Japan, fell into serious recession with negative growth. However, thanks to the synchronous solutions taken to solve difficulties, boost production and business, and promote economic growth, Bac Ninh has many socio-economic indicators in the group of leading provinces/cities in the country. Specifically, industrial production value ranked the first in the country at VND 1.3 million billion or 2.9% increase compared to 2019. Goods export ranked the second at USD 38.9 billion or 14.3% increase compared to 2019. The total Gross Regional Domestic Product (GRDP) of the province in 2020 reached VND 122.7 trillion with an increase of 1.36% compared to 2019. State budget revenue reached VND 30,600 billion, consisting of over 49% from FDI economic sector. These achievements are significantly thanks to the contribution of the Korean enterprises community in the province.

Accumulated to March 31, 2021, among 1,654 valid FDI projects with total registered capital of about USD 20.3 billion from 37 countries and territories in the province, Korea ranks first in terms of investment capital scale with 948 valid projects and total registered investment capital of USD 10.8 billion (accounting for about 53.2% of total FDI capital of the province). Korea's FDI projects are mainly in the fields of electronic components manufacturing, mobile phones, precision engineering, food and agricultural product processing, service industries and civil industry. Korean enterprises create jobs for more than 100,000 local  employees and attract a large number of workers from other provinces, positively contributing to the socio-economic development of Bac Ninh province.

Several typical projects of Korea in Bac Ninh:

- Samsung Display Vietnam Co. Ltd (SDV): USD 6.5 billion;

- Samsung Electronics Vietnam Co. Ltd (SEV): USD 2.5 billion;

- Seojin Auto Vina Factory project - Bac Ninh: USD 150 million;

- Hanwha Techwin Security Vietnam: USD 100 million.

Besides, Korea is the largest trading partner of the province. In 2020, the province's export turnover to Korea reached USD 24.7 billion with the main items of phones, computers, electronic products, machinery, equipment and spare parts, textile products while import turnover of the province from Korea reached USD 12.7 billion with main items of machinery, equipment, tools, and plastic materials.

Cooperation between Bac Ninh province and Samsung Electronics Vietnam Co., Ltd. in assistance of capacity enhancing for supporting enterprises of the province is one of the typical examples of economic cooperation between the province and Korea. On September 21, 2020, the signing of a Memorandum of Understanding between the People's Committee of Bac Ninh province, Vietnam’s Ministry of Industry & Trade and Samsung Electronics Vietnam Co., Ltd was taken place in Bac Ninh province. The MoU aims at increasing the annual share of Vietnamese enterprises in Bac Ninh province in the industrial production value chain created by Samsung by 2025 through the implementation of two programs, namely the Counseling Program and the Supplier Development Program.

In 2020, 05 enterprises in the province were chosen for the Counseling Program with very positive results, which helped to increase their production process capacity from level 1 to level 2. Especially, one among them was assessed to gain level 3 in the 5-level rank by Samsung experts. The indicators of productivity, quality, labor productivity, working environment have been significantly improved with an increase between 20% and 30%. After signing the MoU, the three parties jointly evaluated and selected potential suppliers for Samsung Vietnam. So far, HB Tech Vina Co., Ltd is finalizing documents to supply mechanical and automation components for Samsung Electronics Bac Ninh (SEV) factory, while it also invited by Samsung Electronics Thai Nguyen factory (SEVT) to participate in their supply chain. Vietnam Smart Technology Application and Mechanical Trading Co., Ltd. (SMT) continues to expand supply to SEV and SEHC Factory in Ho Chi Minh City, while at the same time being in the process to become a supplier for Samsung Display Vietnam Co., Ltd. This is a meaningful activity to effectively help supporting enterprises of the province in connecting, linking, enhancing competitiveness, expanding supply capacity, and participating more strongly in the global value chain by Samsung.

Over the past time, the Covid-19 pandemic has had a tremendous impact on every industries and fields in countries all over the world, while Bac Ninh has deeply integrated into the international economy and the industrial sector has played a very first role with the participation of hundreds of Korean enterprises. Facing this difficult situation, the province has actively taken measures to support businesses in the province such as tax relaxation and reduction; supporting the entry of foreign experts and business owners to work in the province; simplifying administrative procedures, helping FDI enterprises in general and Korean enterprises in particular overcome difficulties, maintaining stable production and business. The province has assigned Tax department to put into effect the Decree No. 41/2020/ND-CP dated April 8, 2020 on extension of the Government's tax and land rental payment deadline. As a result, by the end of December 2020, 178 Korean enterprises were allowed to extend the tax amount with the value of VND 1,150 billion. In addition, following resolutions of the Government and the National Assembly on further settlement of difficulties for production and business and creating conditions for enterprises’ recovery, the province also issued a tax reduction policy for Korean enterprises; accordingly, businesses with turnover below VND 200 billion per year shall be reduced 30% of the payable corporate income tax in 2020. As a result, by the end of 2020, the amount of taxes, fees and charges that Korean businesses were reduced were VND 500 billion.

In order to ensure normal business operations in the context of restricting entry due to the pandemic, Bac Ninh province has taken the lead in supporting entry for foreign employees including those who are from Korea. On May 28, 2020, Bac Ninh Provincial People's Committee issued Decision No. 616/QD-UBND on the establishment of a task force team to support entry, reception and quarantine for foreign employees to work Bac Ninh province during Vietnam’s Covid-19 announcement period. Since its establishment, the task force team has cooperated closely to facilitate the entry of experts, managers, and high-tech employees from abroad. By the end of December 2020, the province provided entry support for about 9,700 people in total including more than 5,600 Korean people (about 4,100 experts of Korean businesses in the province and about 1,500 experts of Korean businesses and their relatives outside the province). According to the enterprises' reports, the health of all foreign employees and their relatives is good, no one has been infected with Coronavirus.

The province currently nominates 25 concentrated isolation places with fee, which shall provide accommodation for 2,600 people. Based on the number and capacity of hotels approved by the Provincial People's Committee, and the needs of experts from Korea and other countries, in the coming time, Bac Ninh will support maximum entering demand of Korean experts and their relatives within the requirements of both ensuring epidemic prevention and socio-economic development.

Nowadays, around Korean citizens 5,000 are living and working in Bac Ninh province accounting for 40% of the total number of foreigners pressent in the province. The Korean community in the province has strictly complied with regulations on Covid-19 control of the Government of Vietnam and Bac Ninh province as part of the effort to successfully control the epidemic.

In order to make economic cooperation between Bac Ninh province and Korea deep and effective in the context of the Covid-19 pandemic, on January 13, 2021, Mrs. Dao Hong Lan, Secretary of the  Provincial Party Secretary had a working session with Mr. Park Noh-wan, Ambassador Extraordinary and Plenipotentiary of Korea to Vietnam and representatives of several relevant Korean agencies in Vietnam such as Korea Chamber of Business (KORCHAM), Korea Trade-Investment Promotion Agency (KOTRA), Korea International Cooperation Agency (KOICA), Korea Chamber of Commerce and Industry (KCCI), and some outstanding Korean enterprises in Bac Ninh province. At the meeting, the two sides agreed on a wide range of contents such as supporting enterprises affected by the Covid-19 pandemic, promoting cooperation, and attracting investment from Korean partners to Bac Ninh with special priority given to the fields of smart city, health, education and training, high-tech agriculture, hi-tech industry, supporting industries, environment and energy-saving, automobile and auto parts manufacture,...

In addition, so as to recognize the contribution of FDI enterprises, honor FDI countries in Bac Ninh as well as strengthen cooperation and friendship between the province and countries, territories with FDI capital in the province, on November 6, 2019, Bac Ninh province kicked off the construction of International Friendship Park. The main function of the park is to create a space to display the symbols of countries, territories and FDI enterprises in the province, including the Republic of Korea and typical Korean enterprises. This will be a living demonstration for promoting friendly cooperation between Bac Ninh province with other countries in general and Korea in particular.

Economic cooperation is a key pillar in the overall bilateral relationship between Bac Ninh and Korea. As its key partner, Bac Ninh province is enacting a variety of synchronous measures to promote foreign investment attraction and trade exchange with Korea as well as and support Korean businesses to overcome the crisis. Given in the context of the Covid-19 pandemic, the promotion of cooperation activities with Korea has significantly enabled the province to maintain its growth rate, integrate more deeply into the international economy, and tighten the relationship of "Strategic Cooperation Partnership" between the two countries Vietnam - Korea.