South Korea and Vietnam are enhancing their strategic cooperation, focusing on advanced industries, critical mineral supply chains, and energy. The two countries aim to shift the focus of their collaboration, based on the Korea-Vietnam Free Trade Agreement (FTA), towards high-value and future industries, with a goal of achieving $150 billion in trade by 2030.
The Ministry of Trade, Industry and Energy announced that Minister Kim Jeong-kwan held the 15th Korea-Vietnam Joint Industrial Committee and the 9th Korea-Vietnam FTA Joint Committee on August 26 at the Lotte Hotel in Seoul, alongside Vietnam's Minister of Industry and Trade, Le Minh Khai.
Both nations agreed to translate the cooperation tasks discussed during two summits since the current government took office into concrete outcomes in trade, investment, industrial technology, and energy security. They also reviewed the results discussed in the subcommittees on trade, industrial technology, and energy resources under the Joint Industrial Committee and the implementation body of the FTA Joint Committee.
Since the Korea-Vietnam FTA took effect in December 2015, trade between the two countries has increased by an average of about 10% annually. Last year, trade reached $94.6 billion, and in the first half of this year, it recorded $62.4 billion. The Ministry anticipates that if this trend continues, annual trade will exceed $100 billion for the first time this year.
Investment cooperation is also expanding. As of June this year, South Korea's cumulative investment in Vietnam reached $102.4 billion, making it the largest investor in the country. Investment in the first half of this year was $8 billion, a 160% increase compared to the same period last year. The investment sectors are broadening to include high-value manufacturing in electronics, semiconductors, advanced materials, and chemicals.
In response, both countries agreed to support the recruitment of personnel for South Korean manufacturing companies operating in Vietnam. They will also promote a 'technology sharing model' to transfer technology from local South Korean conglomerates to Vietnamese partner companies. Discussions will also include expanding incentives for South Korean automotive companies operating in Vietnam and standardizing quality.
In the critical mineral supply chain sector, administrative procedures are underway to expedite the construction of a critical mineral supply chain technology center. The Vietnamese government will assist in resolving investment challenges faced by South Korean companies, such as permitting for rare earth metal manufacturing plants.
In the energy sector, the two countries will pursue long-term resource supply chain cooperation, including joint oil stockpiling and emergency response systems. They will support the smooth implementation of liquefied natural gas (LNG) power projects in Vietnam and strengthen policy cooperation in power grids, nuclear energy, and renewable energy.
During the FTA Joint Committee meeting, they discussed improving unnecessary duplicate testing regulations related to lithium-ion batteries and export quarantine cooperation for processed chicken and pork. They also agreed to share information on the current status of import regulations, organizations, laws, and systems to enhance cooperation in trade remedies.
Minister Kim stated, "As Vietnam actively promotes attracting investment, introducing advanced technology, localizing industries, and pursuing green and digital transitions, we will expand the scope of trade and investment into future-oriented areas. We will enhance cooperation in cultivating advanced ecosystems and industrial technology talent, as well as strengthen collaboration in critical mineral supply chains and energy security."
* This article has been translated by AI.
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