Deputy Prime Minister Ho Duc Phoc (R) receives Kim Sung-tae, Chairman and CEO of the Industrial Bank of Korea (IBK), in Ha Noi on September 23. (Photo: VNA)

Deputy PM Phoc spotlighted positive outcomes of bilateral relations, emphasising that Viet Nam and the Republic of Korea (RoK) have become leading partners across all fields, with economy, investment, and trade serving as key pillars of their ties.

Sharing updates on Viet Nam’s recent socio-economic development and important development orientations in the time to come, he affirmed that the Vietnamese Government consistently supports foreign businesses, including enterprises from the RoK, to operate effectively.

For his part, Kim revealed the establishment of a wholly foreign-owned bank of IBK in Viet Nam, expressing his hope that it will make significant contributions to Viet Nam’s economic development in the coming years, particularly by supporting small and medium-sized enterprises, engaging in infrastructure projects, and investing in finance.

Phoc voiced his support for the IBK’s plan to establish a new legal entity in Viet Nam, showing the hope that the bank will continue to achieve success and make greater contributions to the Southeast Asian nation’s economy.

He expressed appreciation for the RoK’s experience in developing SMEs. He noted that in Viet Nam, more than 98% of the over 940,000 operating businesses are SMEs. He added that Viet Nam is implementing measures to promote the sustainable and efficient growth of this sector.

The two sides discussed credit support for SMEs, building linkages between SMEs and large or global corporations, and assisting SMEs in investing in new technology sectors.

Kim also shared experience of government–bank cooperation in implementing loan guarantee programmes for household businesses to help them recover after the COVID-19 pandemic, as well as providing capital support for SMEs to overcome economic, financial, and monetary crises.

Established by the RoK government in 1961 with the state holding a 68.5% stake, the IBK has a mandate to provide financial support for SMEs, which currently account for 82% of its total outstanding loans. As of June, the bank operates 625 branches in the RoK and 60 abroad, including two in Viet Nam.