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The SME sector is also lending its support to President Yoon Seok-yeol’s state visit to Vietnam from the 22nd to the 24th.

The Korea Federation of SMEs announced on the 21st that it will be sending an economic delegation to support SMEs’ advancement into Vietnam while accompanying President Yoon Seok-yeol on his visit to Vietnam from the 22nd to the 24th. Chairman Kim Ki-moon of the Korea Federation of SMEs will attend official schedules such as the Korea-Vietnam Business Forum and the accompanying economic delegation dinner to provide support. In particular, he plans to discuss ways to resolve difficulties faced by Korean SMEs advancing into Vietnam with Prime Minister Pham Minh Chinh and Minister of Planning and Investment Nguyen Tri Dung.

The fashion and beauty industries stand out among the SME economic delegation. They are most actively seeking new opportunities in the Vietnamese market, which has a population of over 100 million.

Hansae Industry, a fashion original design manufacturing (ODM) company, has Vice Chairman Kim Ik-hwan and President Kim Kyung as members of the delegation. Hansae Industrial operates 22 corporations and 10 offices in 9 countries around the world. Of these, 10 corporations are located in Vietnam. Hansae Industrial Vietnam employs approximately 25,000 people, including its partner companies. During this visit, Hansae Industrial will attend a dinner meeting with fellow businesspeople, a business forum, and other events to discuss mutual cooperation with businesspeople and officials from both countries.

Choi Jun-ho, the CEO of fashion group Hyungji and golf wear brand Castelbajac, also attended. Choi believes that Vietnam has a population of nearly 100 million and the middle class growth rate is the highest in Southeast Asia at 10%, so the number of golfers is expected to increase. Hyungji announced plans to grow Castelbajac into a representative brand that will realize 'Global Hyungji' by acquiring the French headquarters of Castelbajac in 2016, and has revealed a strategy to show off K-fashion's prestige in the ASEAN market through this visit to Vietnam.

Castelbajac is aiming for a soft landing in Vietnam based on the business agreement signed with Central Group, the largest distribution company in Thailand, early this year to advance into Southeast Asia and Europe. Central Group currently operates about 30 shopping centers and 200 stores in Vietnam.

In the beauty industry, Vice Chairman Yoon Sang-hyun of Kolmar Holdings Korea joined the economic delegation. Kolmar Group established a Vietnamese corporation through its affiliate HK Innoen in 2019 and is distributing health functional foods and hangover remedies. It currently sells more than 1 million bottles of Condition, Korea’s representative hangover remedies, annually. Kolmar Holdings Korea plans to seek opportunities to expand exports to cosmetics by taking advantage of the popularity of Condition through its participation in the economic delegation to Vietnam.

Cosmetics ODM company Cosmax also included Lee Seong-hoon, head of the sales headquarters of its Thai corporation, in the delegation. Cosmax currently only operates an office in Vietnam. However, through this delegation, they plan to help domestic clients enter Vietnam while also introducing Cosmax to local clients.

In the startup world, Lotte Ventures, a corporate venture capital (CVC) of Lotte Group, is attracting attention. Lotte Group established Lotte Ventures Vietnam, a Vietnamese corporation of Lotte Ventures, in August 2021. Lotte Ventures is focusing on the Vietnamese startup market's future growth potential rather than its current value. As a member of the economic delegation, they plan to participate in Vietnamese startup ecosystem activities to expand local investment opportunities and build networks with major startup officials.

The move by Larian & Loy to enter the Vietnamese smart education market is also drawing attention. Larian & Loy is a Korean company that has been in Vietnam since 2018, and exports bags and stationery to Vietnam. Together with its partner Watson & Company, they introduced Focus Smart, an electronic drug that improves concentration using brain nerve modulation technology, to the Vietnamese education market. Larienroy plans to launch a pilot project with Vietnam University Hospital, international school, and Ho Chi Minh Airport in Vietnam. Kim Min-gyu, CEO of Watson & Company, a partner of Larienroy, also accompanied the Vietnam economic delegation. Watson & Company is a digital mental care company specializing in products that help with insomnia and concentration.

Kim Cheol-woo, Director of the International Trade Department of the Korea Federation of SMEs, said, “Vietnam accounts for 18.4% of total exports from SMEs, and 90% of Korean companies operating in Vietnam are SMEs, making it an important country for SMEs,” adding, “Through this delegation, we will support our SMEs to actively enter the Vietnamese market by resolving difficulties they are experiencing locally.”