S. Korea, Vietnam vow stronger ties in cutting-edge sectors, building on FTA

Seoul, August 26 - South Korea and Vietnam pledged to deepen economic ties, aiming to boost bilateral trade to $150 billion by 2030, according to the Ministry of Trade, Industry and Resources. During joint industrial cooperation free trade agreement committee meetings, Industry Minister Kim Jung-kwan and Vietnamese counterpart Le Manh Hung discussed strategies to achieve the goal and addressed supply chain cooperation.

The countries vowed to strengthen cooperation in quarantine negotiations for Vietnamese lychees and passion fruit and South Korean tangerines and kiwifruit, while addressing challenges faced by South Korean firms operating in Vietnam and accelerating technology exchanges. Vietnam committed to collaborating with local governments to facilitate South Korean businesses' recruitment of local workers, and South Korea agreed to help Vietnamese partners gain access to advanced technologies.

The two nations also agreed to establish a critical minerals supply chain technology center to ensure stable supplies for South Korean firms in Vietnam. Additionally, they discussed expanding cooperation in the energy sector, including joint crude oil stockpiling and an emergency response mechanism. A memorandum of understanding was signed between Korea National Oil Corp. and PetroVietnam Oil Stockpile Ltd. for the construction of an oil storage facility in Vietnam, setting the stage for stable oil supply chain cooperation in the Asia-Pacific region.

Since the Free Trade Agreement with Vietnam came into effect, bilateral trade has grown by an average of 10% annually, with the potential to reach $100 billion this year. Minister Kim emphasized the need to expand trade and investment in a forward-looking manner, as Vietnam transitions toward adopting cutting-edge technologies, upgrading local production capabilities, and pursuing green and digital transformations.