South Korea and Vietnam agreed Monday in Seoul to boost bilateral trade to $150 billion over the next five years, nearly double current levels, by expanding their economic cooperation while deepening their defense and security ties.
South Korean President Lee Jae Myung and To Lam, general secretary of Vietnam’s Communist Party and the country’s de facto ruling leader, held a summit in the morning and jointly announced expanded partnerships across multiple sectors.
Celebrating the 10th anniversary of the two countries’ free trade agreement, the two leaders agreed to work toward expanding bilateral trade to $150 billion by 2030, Lee said at a joint press conference following the meeting.
In 2024, their bilateral trade totaled $86.7 billion, making Vietnam Korea’s third-largest trade partner for three consecutive years after China with $272.9 billion and the US with $199.9 billion, according to Korea’s Ministry of Trade, Industry and Energy.
Korea exported $55.9 billion worth of goods to Vietnam and imported $25.6 billion last year, becoming Vietnam’s third-largest export destination and second-largest source of imports.
Lam is making a four-day state visit to Seoul, starting Aug. 10.
His visit marks the first state visit by a foreign head of state since President Lee took office on June 4, as well as the first visit by a Vietnamese party chief, the country’s most powerful political figure, in over a decade, with the last taking place in 2014 under then-President Park Geun-hye.
The Lee government is seeking to bolster its economic and diplomatic footprint in Southeast Asia as part of its push to revitalize Asia’s fourth-largest economy.
Vietnam, positioning itself as a key beneficiary of shifting global supply chains amid intensifying US-China tensions, is expected to help Seoul expand its reach across the region as a strategically important partner.
NUCLEAR POWER AND HIGH-SPEED RAIL
As part of their stepped-up economic cooperation, Seoul has expressed its strong interest in joining Hanoi’s major infrastructure development projects, ranging from nuclear power to high-speed rail and urban development.
Vietnam has recently approved its new national power development plan, which includes nuclear power for the first time, to bolster the nation’s long-term energy security.
It is also set to embark on its largest national infrastructure project to date – a $67 billion high-speed railway linking the northern capital, Hanoi, with the southern economic hub of Ho Chi Minh City.
“I hope our two nations will work together to deliver successful projects that draw on the technology prowess and extensive expertise of Korean companies,” Lee said after noting Vietnam’s upcoming massive infrastructure development projects.
“General Secretary Lam said he recognizes the strong capabilities of Korean companies and will actively consider their participation,” Lee added.
During their meeting, the two countries signed a memorandum of understanding on training nuclear-power talent, a step expected to pave the way for broader cooperation in the sector.
Korean companies are also looking to take part in a new town development project in Bac Ninh, northern Vietnam, using smart-city technologies – an initiative that could become the first export of South Korea’s urban-development model, Lee said.
Seoul and Hanoi will also enhance their partnership in the defense and security sectors, according to Lee.
After the talks, the two leaders issued a joint declaration to deepen relations between South Korea and Vietnam as expanded strategic partners.
MEETINGS WITH TOP KOREAN BUSINESS LEADERS
During his four-day trip to Seoul, Lam is expected to hold a series of high-level business meetings with the chiefs of Korea’s largest conglomerates, including Samsung Electronics Co. Chairman Lee Jae-yong, also known internationally as Jay Y. Lee, SK Group Chairman Chey Tae-won and Lotte Group Chairman Shin Dong-bin.
Some expect he would visit Samsung’s key production facilities in Korea.
In 2014, then-party chief Nguyen Phu Trong traveled to Seoul and made a rare stop at Samsung’s headquarters to discuss business cooperation with Samsung’s Lee.
The South Korean presidential office announced later Monday that SK Chairman Chey, Lotte Chairman Shin, Hyundai Motor Group Chairman Chung Euisun and LG Group Chairman Koo Kwang-mo will attend a state banquet hosted by President Lee for Lam.
Vietnam is a critical manufacturing hub for Korean technology giants, particularly in smartphones and semiconductors.
Samsung operates its largest smartphone production facilities there, while SK has substantial manufacturing and investment operations.
Economic ties between the two nations have deepened steadily in recent years.
By Sookyung Seo
skseo@hankyung.com
Jennifer Nicholson-Breen edited this article.
