South Korea and Vietnam aim to boost bilateral trade to $150 billion by 2030
&imwidth=600&imheight=450&format=webp&quality=medium "South Korea and Vietnam aim to boost bilateral trade to $150 billion by 2030")
Shipping containers are seen at Pyeongtaek port in Pyeongtaek, South Korea, April 15, 2025. Photograph: (Reuters)
South Korea and Vietnam plan to sign at least 10 memoranda of understanding during this summit, covering areas such as nuclear and renewable energy, financial policies, and science and technology.
South Korea and Vietnam have set an ambitious target to nearly double their bilateral trade to $150 billion annually by 2030. The announcement was made during a high-profile summit between South Korean President Lee Jae Myung and Vietnamese Communist Party chief To Lam in Seoul on August 11. The two leaders emphasised the importance of their growing economic ties, particularly as both nations face challenges from global trade uncertainties, including US tariffs.
President Lee highlighted that Vietnam is a “very important neighbouring country” for South Korea, not only for trade but also for security. “We agreed to accelerate the mutually beneficial economic cooperation that has served as a solid foundation for our bilateral relations,” Lee said. Lam’s visit marks the first by a foreign leader to South Korea since Lee took office in June, underscoring the strategic significance of their partnership.
Key areas of collaboration and infrastructure development
The two leaders discussed strengthening cooperation in key sectors, including critical minerals, national defence, and infrastructure development. South Korean companies, particularly in the fields of technology and heavy industry, are expected to play a crucial role in major Vietnamese projects such as city construction, high-speed railways, and nuclear power plants.
Vietnam is already South Korea's largest investor, with over 10,000 registered investment projects worth a total of $94 billion. Bilateral trade between the two nations reached $81.5 billion in 2024, a 7.3 per cent year-over-year increase. The countries plan to sign at least 10 memoranda of understanding during this summit, covering areas such as nuclear and renewable energy, financial policies, and science and technology.
Facing trade challenges amid US tariffs
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The growing trade ties between South Korea and Vietnam come at a time of heightened uncertainty due to recent US tariffs on both nations. The Trump administration has imposed a 15 per cent tariff on South Korean exports and a 20 per cent tariff on Vietnamese goods. Both countries are seeking ways to mitigate the impact of these tariffs, which have raised concerns about future business prospects.
Despite these challenges, the strategic cooperation between the two countries is expected to remain strong. Vietnamese officials have pointed to an increasing focus on areas like semiconductors and artificial intelligence as new opportunities for collaboration. South Korean companies, such as Samsung Electronics, have long used Vietnam as a key export hub, benefiting from lower labour costs and favourable tax policies. The leadership summit is seen as a step toward solidifying these business relationships and fostering new investments in infrastructure and energy sectors.