South Korea and Vietnam pledged to enhance economic and strategic ties during a summit to increase trade amidst global challenges and uncertainties. South Korean President Lee Jae Myung hosted Vietnamese leader To Lam, the first state guest since his inauguration on June 4. They discussed promoting trade and investment, with about 10,000 Korean companies operating in Vietnam contributing notably to its economy.
Lee emphasised the importance of stable operations for Korean businesses, which benefit from Vietnam’s attractive investment climate. Both nations agreed to expand their markets and target a trade volume of $150 billion by 2030, alongside increased investment and technological collaboration.
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The leaders planned to sign at least ten memoranda of understanding covering areas such as nuclear energy, renewables, finance, science, infrastructure, and high-speed rail. This visit is expected to foster a favorable environment for South Korean investments in Vietnam’s infrastructure and energy projects.
Vietnamese officials appreciated Korean investments, as numerous companies such as Samsung Electronics utilise Vietnam as an export hub, taking advantage of low labor costs and free trade agreements. However, recent U.S. tariff policies under President Donald Trump, imposing 15% tariffs on Korean goods and 20% on Vietnamese goods, have introduced uncertainty, affecting new investments.
Despite challenges, South Korean companies are considered key players in Vietnam’s nuclear, LNG, and rail projects, highlighting the ongoing strategic and economic ties between the two countries.
