Strengthening Economic and Strategic Partnerships
Vietnamese Party General Secretary To Lam recently led a high-level delegation on a state visit to South Korea, during which he and South Korean President Lee Jae Myung oversaw the signing of ten cooperation documents across a wide range of fields, including defense, security, economy, trade, and culture. A joint statement released after their bilateral talks confirmed an ambitious new trade goal: to achieve a balanced and sustainable bilateral trade volume of $150 billion by 2030. This new target builds on a strong foundation, as the trade turnover between the two countries in the first seven months of the year reached an impressive $50 billion, a notable increase from $46.5 billion during the same period last year. This included a significant rise in Vietnamese exports to South Korea, which grew by 11.8% year-on-year to $16.3 billion, while South Korean exports to Vietnam saw a 5.3% increase to $33.7 billion. Last year, the total trade volume was $81.7 billion, with Vietnam’s exports accounting for 6.28% of its total export turnover and its imports from South Korea making up 14.76% of its total import value.
Fostering a Favorable Investment and Trade Climate
To facilitate the flow of goods and services, both nations have agreed to expedite the implementation of a mutual recognition agreement on authorized economic operators and to support Vietnamese businesses in their efforts to integrate more deeply into South Korean global supply chains. Furthermore, the two sides have committed to encouraging South Korean companies to initiate new projects and expand their existing investments in Vietnam, with a priority on key sectors such as high-tech industrial zones, digital industries, infrastructure development, renewable energy, and smart cities. The South Korean delegation emphasized that fostering a favorable investment environment is crucial for the sustainable expansion of trade and investment. In response, Vietnam reaffirmed its commitment to maintaining an open, transparent, and stable investment climate for foreign enterprises. The Ministry of Finance’s Foreign Investment Agency reports that as of late July, South Korea remains Vietnam’s largest foreign investor, with over 10,250 active projects and nearly $94.9 billion in registered capital. In the first seven months of the year alone, new and additional capital from South Korean investors in Vietnam reached $3.9 billion, a remarkable 131% increase year-on-year, demonstrating immense confidence in Vietnam’s market. Both sides have also agreed to explore new initiatives, such as establishing a digital cooperation system to promote trade and investment activities.
Collaboration in High-Tech and Energy Sectors
A key outcome of the visit was the formal identification of science, technology, innovation, and digital transformation as central pillars of bilateral cooperation. To achieve this, both countries have agreed to make effective use of existing cooperation mechanisms, such as the Ministerial-level Joint Committee on Science and Technology, while also exploring opportunities for expanding policy exchanges. The partnership will focus on joint research, training, and human resource exchanges in strategic technology fields of mutual interest, including artificial intelligence, semiconductors, biotechnology, and materials science. Both countries are also committed to enhancing the capacity of the Vietnam-Korea Institute of Science and Technology. Additionally, the two nations agreed to boost collaboration in the energy sector, specifically in areas such as gas-fired power generation, the transition from coal to cleaner fuels, and the co-firing of hydrogen and green ammonia in thermal power plants. They will also work together to expand electricity grids, develop smart grid systems, and explore opportunities for government-business cooperation in the use of critical minerals to build resilient supply chains. This wide-ranging cooperation reflects the depth of the strategic partnership and the shared commitment to future-oriented, high-value economic growth.
