South Korean and Vietnamese leaders to strengthen their bond as they face trade obstacles together
South Korea and Vietnam are set to strengthen their economic and strategic partnership, as shown by their upcoming summit on August 11 in Seoul. The meeting will mark the first state visit for South Korean President Lee Jae Myung since taking office on June 4.
The summit comes at a time of increased uncertainty over future business commitments in Vietnam due to the trade policy of US President Donald Trump, including new tariffs on Asian countries. In response, South Korea and Vietnam have committed to deepening their economic cooperation, aiming to nearly double bilateral trade from about $86.8 billion in 2024 to $150 billion by 2030.
Key sectors set to benefit from this expansion include semiconductors, machinery, AI, biotechnology, agriculture, and textiles. Ambitious projects include joint development in the semiconductor industry, reflecting South Korea’s advanced manufacturing expertise and Vietnam’s growing role in global supply chains.
The countries also plan to expand trade in agricultural products, textiles, seafood, and machinery. Investment facilitation and infrastructure projects to streamline cross-border commerce and regulatory alignment are also on the agenda. Collaboration in high-tech fields such as artificial intelligence, biotechnology, and shipbuilding will broaden Vietnam’s industrial capabilities with South Korean support.
In addition, the leaders are expected to sign multiple memoranda of understanding (MOUs) during the summit, covering cooperation in areas such as nuclear and renewable energy, monetary and financial policies, and science and technology. The visit by Vietnamese leader Lam To is expected to create a favorable condition for South Korean businesses to invest in Vietnam's infrastructure and nuclear energy projects.
However, Vietnamese official data shows a slowdown in new investment due to the uncertainty caused by Trump’s trade policy. The leaders will discuss promoting trade and investment in Vietnam to counteract this trend.
South Korean companies, including Samsung Electronics, have used Vietnam as an export hub for years, benefiting from lower labor costs, generous tax incentives, and Hanoi's numerous free trade pacts. The deepening cooperation between the two countries could further solidify Vietnam's position as a manufacturing powerhouse in the region.
The strategic impetus behind this deepening cooperation is partly driven by US trade policy uncertainties and the evolving US-China rivalry. Both South Korea and Vietnam seek to reduce dependency on single external markets by expanding bilateral trade and strengthening multilateral ties. The economic partnership aims at creating resilient, integrated supply chains and fostering mutual growth despite global geopolitical and trade disruptions.
In summary, the growing ties between South Korea and Vietnam encompass ambitious trade growth targets, strategic industry collaboration, enhanced investment, and technology partnerships, all motivated by adapting to shifting US trade policies and geopolitical dynamics in the region. The upcoming summit in Seoul is set to further cement these partnerships and pave the way for a more integrated and resilient economic future for both countries.
References: 1. Yonhap News Agency 2. Korea Herald 3. Vietnam News 4. Korea JoongAng Daily 5. Vietnam Investment Review
- The economic partnership between South Korea and Vietnam, as showcased by their upcoming summit in Seoul, extends beyond trade growth targets, also encompassing strategic collaborations in key industries such as semiconductors, machinery, AI, biotechnology, agriculture, and textiles.
- The leaders of South Korea and Vietnam are set to sign multiple memoranda of understanding (MOUs) during the summit, including cooperation in finance, monetary policies, and science and technology, aiming to bolster bilateral economic ties and create a favorable environment for South Korean businesses to invest in Vietnam's infrastructure and nuclear energy projects.
