Vietnam and South Korea agreed on Wednesday to strengthen strategic cooperation in energy and infrastructure as global supply-chain pressures intensify amid the ongoing conflict in the Middle East.
The two nations signed 12 agreements covering security, energy infrastructure, and nuclear power, following talks between the leaders in Hanoi.
Among the memorandums signed was an agreement on cooperation in nuclear power plant development between Petrovietnam and Korea Electric Power Corporation. A separate financing arrangement for nuclear projects was also concluded between Petrovietnam, Korea Electric Power Corporation, the Export-Import Bank of Korea, and the Korea Trade Insurance Corporation.
“We agreed to strengthen strategic cooperation in the fields of energy and infrastructure based on the firm mutual trust between our two countries,” South Korean President Lee Jae Myung said.
Lee Jae-myung is currently on a state visit to Vietnam, following an earlier visit to Seoul by Vietnamese leader To Lam.
Both sides agreed to back the involvement of Vietnamese firms in South Korea’s manufacturing and logistics networks, aiming to strengthen Vietnam’s economic resilience and self-sufficiency.
“Both countries commit to further facilitating trade and opening their markets to mutual imports and exports of goods, with the goal of raising bilateral trade to $150 billion by 2030,” said To Lam.
The visit comes as Samsung Electronics plans to invest $4 billion in a chip-packaging facility in northern Vietnam, expanding its presence as the country’s largest foreign investor. According to Samsung Vietnam, the company’s 2024 revenue in Vietnam accounted for about 13% of the nation’s GDP.
Vietnam has become a major manufacturing base for South Korean companies and a key partner in efforts to diversify supply chains beyond China while reducing geopolitical risks.
Lee Jae-myung also revealed a $110 million deal for Hyundai Rotem to supply rail cars for Ho Chi Minh City’s Metro Line 2. He added that he and To Lam agreed to maintain close coordination on Vietnam’s new city and airport projects, which are central to the country’s long-term development strategy.
In addition, the two governments signed an agreement on power infrastructure to support greater cooperation in renewable energy and grid modernization. A separate digital cooperation pact was also reached to enhance collaboration in artificial intelligence, cybersecurity, and broader digital transformation initiatives.
AUTOMOTIVE WORLD | Pakistan Auto Sector Policy to Cut Tariffs Under IMF Plan
