Image: ln24SA
The leaders of South Korea and Vietnam have committed to strengthening their economic partnership as both nations, heavily reliant on exports, seek to secure their supply chains amid disruptions caused by U.S. tariffs.
During a meeting on Monday, South Korean President Lee Jae Myung welcomed Vietnam’s General Secretary To Lam, marking Lee’s first state guest visit since taking office in June. Although the tariffs—set at 15% on South Korean products and 20% on Vietnamese goods entering the U.S.—were not openly discussed, the levies have created uncertainty, leading to a slowdown in new investments in Vietnam according to local data.
The two leaders agreed to boost bilateral trade from approximately $86.8 billion in 2024 to $150 billion by 2030. Vietnam expressed openness to increasing investment from South Korean companies.
Lee highlighted the positive role of the roughly 10,000 South Korean companies operating in Vietnam, emphasizing their contribution to economic growth and mutual cooperation. Lam also called for ongoing support to ensure the stability of South Korean businesses in Vietnam.
Lam’s visit included a delegation of ministers and senior officials from sectors such as industry, trade, foreign affairs, and technology, on a four-day official trip.
During the visit, the two countries signed 10 memoranda of understanding aimed at enhancing collaboration in various fields, including nuclear and renewable energy, finance, science, and technology. Infrastructure projects, such as high-speed rail development, were also part of the agreements.
Speaking at Yonsei University, Lam encouraged continued investment by South Korean firms in Vietnam and warned against the risks of supply chain fragmentation. He emphasized the importance of advancing joint efforts in semiconductor development and innovation in new materials, urging South Korea to support Vietnamese talent in emerging industries like artificial intelligence, biotechnology, and shipbuilding.
Several major South Korean corporations, including Samsung Electronics, have long utilized Vietnam as a key export hub, benefiting from lower labor costs, tax incentives, and multiple free trade agreements that Vietnam holds.
South Korean firms have also been mentioned as prospective investors in Vietnam’s upcoming projects in nuclear energy, LNG power generation, and high-speed rail infrastructure.
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