South Korea, Vietnam Expand Energy, Tech Ties

South Korea and Vietnam, set to surpass a $100 billion trade volume this year, are broadening their economic collaboration from high-tech sectors to energy security. Korea's Ministry of Trade, Industry and Energy is backing Vietnam's construction of the nation's inaugural underground oil storage facility, a response to supply and demand volatility.

On August 26, the Korea-Vietnam Industry Joint Committee and the Korea-Vietnam FTA Joint Committee held discussions to bolster bilateral cooperation. Since the summit last August, the two nations have enhanced energy cooperation, including renewable energy projects and training for nuclear power specialists. The Korea National Oil Corporation (KNOC) and Vietnam's PetroVietnam Oil Stockpile Company (PVOS) signed a memorandum of understanding (MOU) to collaborate on building Vietnam's oil storage facility.

KNOC, with domestic oil storage experience, will provide technical consultation for design, construction, operation, and maintenance. The joint committee aims to achieve a $150 billion trade volume by 2030, up from $79.4 billion in 2023 to $94.6 billion last year, with $62.4 billion in the first half of 2024 alone. The industrial technology subcommittee plans to expedite the establishment of the Critical Minerals Supply Chain Technology Center and expand technology sharing among Korean conglomerates and Vietnamese businesses.

In the trade subcommittee, both countries agreed to work together on quarantine negotiations for exports like Vietnamese lychees, passion fruit, Korean Unshu mandarins, and kiwis. The FTA joint committee reviewed customs, quarantine, and import regulations, agreeing on improvement measures. Minister Kim emphasized the rapid growth of trade between the two countries under the 2015 Korea-Vietnam FTA, projecting the volume to exceed $100 billion by year-end.