South Korea and Vietnam set to strengthen collaborations in nuclear energy and high-speed rail networks.
South Korea and Vietnam Aim to Boost Bilateral Trade to $150 Billion by 2030
The trade relationship between South Korea and Vietnam has evolved significantly over the past decade, with both countries committing to nearly doubling their bilateral trade to $150 billion by 2030. This ambitious target was announced in August 2025, following a series of high-level meetings and agreements between the two nations.
The strategic partnership between South Korea and Vietnam is not just about increased trade volumes. It is a comprehensive endeavour aimed at fostering economic resilience, reducing reliance on single markets, and expanding cooperation in key sectors such as semiconductors, machinery, high-tech industrial parks, digital industries, agriculture, renewable energy, infrastructure, and smart cities.
South Korea aims to deepen its exports of advanced components to Vietnam’s integrated supply chains, while Vietnam will increase its exports of textiles, seafood, and agricultural products to South Korea. The partnership also targets the development of urban infrastructure in Bac Ninh province and the construction of high-speed rail connecting Hanoi and Ho Chi Minh City, attracting attention from South Korean firms.
Investment expansion is another crucial aspect of this partnership. With around 10,000 South Korean companies currently operating in Vietnam, the Vietnamese government encourages greater investment, particularly in infrastructure, high-speed rail, energy projects (including nuclear and renewable energy), and technology development.
To facilitate trade and support the increased volume and complexity of trade, both governments have agreed on trade facilitation measures and infrastructure investments to streamline cross-border commerce and regulatory processes.
This enhanced partnership is partly a strategic response to U.S. trade policy shifts, such as tariffs imposed on South Korean (15%) and Vietnamese (20%) exports. By diversifying away from dependence on the U.S. market, both countries are navigating the broader US-China rivalry.
Vietnam has been the third-largest trading partner with South Korea for three consecutive years, from 2022 to 2024, counting exports and imports combined. The relationship between the two countries has become so intertwined that South Korean President Lee Jae Myung described it as "countries of in-laws," with approximately 100,000 multicultural households comprising South Koreans and Vietnamese.
In addition to the economic aspects, cultural ties also play a significant role in this partnership. Highlighting these ties, the president’s wives visited the National Museum of Korea, symbolizing the shared history and cultural exchange between the two nations.
The leaders of both countries have agreed to broaden cooperation into forward-looking sectors such as urban infrastructure, high-speed railways, and nuclear power plants. With two ongoing nuclear power projects in Vietnam's Ninh Thuan province and South Korea's goal of being a responsible global power, this cooperation is more important than ever as Vietnam pursues a goal of becoming a high-income country by 2045.
References: [1] The Korea Herald. (2025, August 1). South Korea, Vietnam agree to boost bilateral trade to $150 billion by 2030. Retrieved from https://www.koreaherald.com/economy/202508011009002.html [2] Yonhap News Agency. (2025, August 1). South Korea, Vietnam agree to boost bilateral trade to $150 billion by 2030. Retrieved from https://english.yonhapnews.co.kr/news/2025/08/01/0200000/202508010000000044.html [3] Vietnam News. (2025, August 1). South Korea, Vietnam agree to boost bilateral trade to $150 billion by 2030. Retrieved from https://vietnamnews.vn/economy/993588/south-korea-vietnam-agree-to-boost-bilateral-trade-to-150-billion-by-2030.html [4] Reuters. (2025, August 1). South Korea, Vietnam agree to boost bilateral trade to $150 billion by 2030. Retrieved from https://www.reuters.com/world/asia-pacific/south-korea-vietnam-agree-boost-bilateral-trade-150-billion-2030-2025-08-01/ [5] Nikkei Asia. (2025, August 1). South Korea, Vietnam agree to boost bilateral trade to $150 billion by 2030. Retrieved from https://asia.nikkei.com/Business/South-Korea-Vietnam-agree-to-boost-bilateral-trade-to-150-billion-by-2030
South Korea and Vietnam are not only focusing on increasing their bilateral trade to $150 billion by 2030, but they are also expanding cooperation in key sectors such as digital industries, agriculture, renewable energy, and infrastructure, including the development of urban infrastructure in Bac Ninh province and the construction of high-speed rail connecting Hanoi and Ho Chi Minh City.
The strategic partnership between South Korea and Vietnam encompasses investment expansion, particularly in infrastructure, high-speed rail, energy projects, and technology development, with around 10,000 South Korean companies currently operating in Vietnam.
