Korea, Vietnam to strengthen cooperation on key projects

President Lee Jae-Myung met with Vietnam’s top-ranking official, Communist Party General Secretary Nguyen Phu Trong, during the latter’s state visit on Monday. They agreed to double trade between the two countries within five years, increasing from $86.7 billion last year to $150 billion by 2030. Both sides also pledged to enhance cooperation in nuclear power, high-speed rail, defense, and new city development.

Vietnam was South Korea’s third-largest trading partner last year, behind China and the United States, and ranked second in trade surplus after the U.S. South Korea is also the largest investor in Vietnam, with about 10,000 Korean companies, including Samsung and LG, operating there. With a population of 100 million and a median age of just 32, Vietnam is a young, fast-growing market with an annual growth rate near 7 percent. The two countries have a free trade agreement, with Korea supplying core parts while Vietnam manufactures final products for export to the U.S. and other markets, making it a valuable partner amid rising U.S. tariffs.

The leaders issued a joint statement to broaden their “comprehensive strategic partnership” to cover future-focused areas, such as advanced science and technology, energy, and supply chains. Vietnam is advancing large-scale national projects, including a 90-trillion-won high-speed rail and 190-trillion-won power generation initiatives featuring new nuclear plants, creating opportunities for Korean companies. Participation in the new city project in Bac Ninh Province could represent Korea’s first export of a “K-New Town.”

Vietnam is also a crucial partner for diversifying South Korea’s advanced industrial supply chains. It holds the world’s second-largest rare earth reserves after China, essential for semiconductors and electric vehicle batteries. The two nations agreed to collaborate by establishing a core mineral supply center to counter China’s weaponization of rare earths. Other areas such as artificial intelligence and biotechnology offer further opportunities where Vietnam’s resources and workforce can join with Korean technology and capital.

In the midst of a global realignment of trade, cooperation with key Southeast Asian countries like Vietnam and the ASEAN bloc is vital to reduce dependence on the United States and China. This market is not merely a niche for export diversification but a strategic priority. South Korea should use its partnership with Vietnam as a stepping stone to expand into the New Southern region, including ASEAN and India, aiming to find new breakthroughs amid ongoing trade tensions.