Anticipated party leader's visit to mark a fresh era in trade ties between Vietnam and South Korea
The Vietnamese Trade Promotion Agency led a delegation to the Republic of Korea (RoK) in July under the National Trade Promotion Programme, marking another step in the growing economic relationship between the two countries.
The Ministry of Industry and Trade in Vietnam is implementing an action plan to achieve $150 billion in two-way trade with the RoK by 2030, with a more balanced structure. Priority areas for this action plan include expanding market access for agricultural products such as Vietnamese lychee and passion fruit, and Korean kiwi and tangerines; strengthening cooperation in clean energy, green manufacturing, and environmentally friendly production; investing in logistics infrastructure; and deepening integration into major Korean retail networks.
During the delegation's activities, a representative of Ameii Việt Nam Joint Stock Company connected with a large Malaysian supermarket system interested in the company's dried fruit products. This connection represents a potential opportunity for increased trade between the two countries.
Bilateral trade reached $81.5 billion in the previous year, up 7.3% year-on-year. The RoK is a significant market for exports such as textiles, transport equipment, and machinery from Vietnam.
Following their meeting, the two ministers signed a memorandum of understanding on cooperation in energy, industry, and trade, aiming to create breakthroughs in bilateral economic ties. They also reaffirmed that their ministries would work closely to facilitate business and investment connections between the two countries.
At the Korea Import Fair 2025 in Seoul, Vietnamese exhibitors impressed major retail chains such as Walmart and Costco, opening opportunities for their goods to reach "international standards" and enhance their presence in global supply chains.
Vietnamese Minister Diẽn emphasized that the fast-growing economy would require tens of billions of US dollars annually for power generation and transmission infrastructure through 2030, presenting an opportunity for foreign investors, particularly from the RoK.
The RoK currently has 112 investment projects in Vietnam with total capital of $37.4 million, and South Korea has contributed heavily to Vietnam’s economic growth, particularly through sectors like manufacturing, digital transformation, and climate change initiatives. As of May 2025, the RoK is Vietnam's largest foreign investor, with $94 billion in registered capital.
RoK Minister of Trade, Industry and Energy Ahn Duk-geun proposed greater cooperation in supply chains for critical minerals. He also encouraged Vietnamese support for Korean participation in LNG-fired power projects and expanded collaboration in clean energy and nuclear power.
Key areas of economic, trade, and investment cooperation between Vietnam and South Korea include large-scale infrastructure, technology (notably semiconductors, artificial intelligence, biotechnology), nuclear energy, renewable energy, critical minerals, and high-speed rail. Over the years, their cooperation has expanded significantly, supported by free trade agreements and a strong investment presence of Korean companies in Vietnam.
The upcoming visit of Party General Secretary Tô Lâm to the RoK is expected to mark a new milestone in the bilateral relationship between Vietnam and the RoK. The RoK ranks second in development cooperation, pledging $4 billion in official development assistance by 2030.
Vietnam's geographical proximity to the RoK, frequent shipping routes, and relatively low logistics costs offer advantages for exporters. Local-to-local cooperation is thriving, as evidenced by the meeting between businesses from Thái Nguyên Province (Vietnam) and Gyeongsangbuk-do (RoK) in July to celebrate 20 years of provincial-level partnership.
The Việt Nam - Korea Free Trade Agreement (VKFTA), signed in 2015, has strengthened bilateral economic links. The evolution over the years includes initial growth catalysed by free trade agreements, expansion from traditional sectors like manufacturing and infrastructure toward advanced industries, increasing multilayered cooperation, and political support at high levels. This trajectory reflects a broadening and deepening relationship turning Vietnam-Korea ties into a comprehensive strategic partnership across economic, technological, and cultural domains.
[1] https://www.vietnamnews.vn/economy/867-billion-in-trade-between-vietnam-south-korea-in-2024-463660.html [2] https://www.vietnamplus.vn/vietnam-s-trade-with-south-korea-reaches-81-5-billion-usd-in-2021/217615.vnp [3] https://www.vietnaminsider.vn/business/vietnam-s-trade-with-south-korea-expected-to-reach-150-billion-usd-by-2030-435124.html [4] https://www.vietnamnet.vn/en/business/vietnam-s-trade-with-south-korea-expected-to-reach-150-billion-usd-by-2030-717301.html [5] https://www.vietnamplus.vn/vietnam-s-korean-partners-support-development-cooperation-in-clean-energy/216942.vnp
- In the realm of energy, the ministers from both Vietnam and the Republic of Korea (RoK) signed a memorandum of understanding, aiming to foster collaborations in energy, industry, and trade, with a focus on LNG-fired power projects and nuclear power.
- Recognizing the potential in the sports industry, Vietnamese exhibitors showcased their goods at the Korea Import Fair 2025, focusing on meeting the international standards to enhance their presence in global supply chains.
- The Vietnamese Ministry of Industry and Trade identified key areas for cooperation with the RoK, such as technology, notably focusing on semiconductors, artificial intelligence, biotechnology, and renewable energy.
- The digital transformation sector in Vietnam has greatly benefited from South Korean investment, which has been instrumental in promoting Vietnam's economic growth, especially in manufacturing and climate change initiatives.
- With the objective of achieving a more balanced structure in the growing economic relationship, priority has been given to labor-intensive sectors like agriculture, with market access for products like Vietnamese lychee and passion fruit, and Korean kiwi and tangerines.
