South Korea and Vietnam reached an agreement on Monday to nearly double the current trade volume to $150 billion within the next five years by strengthening economic cooperation and deepening defense and security ties. The agreement was reached during a high-level summit in Seoul between South Korean President Lee Jae-Myung and Vietnamese Communist Party leader To Lam. The two leaders emphasized the importance of expanding economic relations, particularly in the face of global trade instability and rising U.S. tariffs.
Lee underscored Vietnam’s crucial role as a neighboring country, highlighting its importance in both trade and security. He stated that both nations have agreed to advance the economic collaboration, which has been a cornerstone of the bilateral ties. Lam’s visit is the first by a foreign leader to South Korea since Lee assumed office in June, reflecting the significance of the partnership.
During his four-day visit to Seoul, Lam will hold several high-level business discussions with South Korea’s major conglomerates.
As part of the partnership, Seoul has shown keen interest in Hanoi’s key infrastructure initiatives, including projects in nuclear energy, high-speed rail, and urban development. Vietnam has recently adopted a new national power development strategy that, for the first time, incorporates nuclear energy as part of efforts to strengthen the country’s long-term energy security.
The two nations also signed a memorandum of understanding to develop nuclear power expertise, signaling a move toward deeper collaboration in the sector. Meanwhile, Korean companies are exploring opportunities to contribute to the new urban development project in Bac Ninh, northern Vietnam.
Vietnam is currently South Korea’s top investment destination, hosting more than 10,000 registered projects valued at $94 billion.
In 2024, trade between South Korea and Vietnam reached $86.7 billion, positioning Vietnam as South Korea’s third-largest trading partner for the third year in a row, following China at $272.9 billion and the United States at $199.9 billion, according to South Korea’s Ministry of Trade, Industry and Energy.
South Korea exported $55.9 billion in goods to Vietnam and imported $25.6 billion, making it Vietnam’s third-largest export market and second-largest import source that year.
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