S. Korea, Vietnam vow to expand trade to $150 bil. by 2030

President Lee Jae Myung and To Lam, general secretary of the Communist Party of Vietnam, shake hands before holding their bilateral talks at the presidential office in Seoul, Monday. Joint Press Corps

Korea and Vietnam have pledged to deepen economic ties with the ambitious goal of expanding bilateral trade to $150 billion, committing to further cooperation in both countries' large-scale infrastructure, technology and nuclear energy sectors. They also agreed to broaden the scope of cooperation into future-oriented fields such as artificial intelligence, high-speed rail, renewable energy and critical minerals.

The agreement came during a bilateral summit in Seoul on Monday between President Lee Jae Myung and To Lam, general secretary of the Communist Party of Vietnam, who has been on a four-day state visit to Seoul since Sunday. This marks the first state visit received by the Lee administration since taking office in early June.

“Marking the 10th anniversary of the Korea-Vietnam Free Trade Agreement this year, the two countries have agreed to intensify efforts to reach the $150 billion trade target by 2030,” Lee said during a joint press conference at the presidential office in Seoul.

The target will be about double the two countries' current trade volume, as last year's figure reached $86.7 billion, with Korea's exports to Vietnam standing at $58.3 billion and its imports from Vietnam, $28.4 billion. Since establishing diplomatic relations in 1992, the bilateral trade has grown remarkably, making each other among their top three trading partners.

Lee highlighted the significant contribution of approximately 10,000 Korean companies operating in Vietnam to Vietnam’s economic development and fostering mutually beneficial cooperation. He called on the Vietnamese government to continue supporting these companies to ensure their stable and sustainable business activities.

President Lee Jae Myung and To Lam, fourth from left, general secretary of the Communist Party of Vietnam, hold an expanded talk with officials from the two countries at the presidential office in Seoul, Monday. Joint Press Corps

Both nations agreed to strengthen collaboration in strategically important infrastructure sectors, including nuclear power, high-speed rail and urban development.

“I emphasized that major national projects such as Vietnam’s new nuclear power plant construction and the North–South high-speed rail project are critical for ensuring a stable power supply and establishing a modern transportation and logistics system. I also expressed my hope that, leveraging the outstanding technological expertise and extensive experience of Korean companies, these projects will become successful models of cooperation,” Lee said.

Saying the two nations signed a memorandum of understanding to foster Vietnamese experts in nuclear power, the president expected the agreement to become an opportunity for the two nations to expand cooperation in the sector.

Lee added that the two countries will strengthen cooperation in the critical minerals sector by combining Vietnam’s abundant rare earth resources with Korea’s advanced technology. To this end, they agreed to explore collaborative measures for the supply, processing and utilization of critical minerals, centered around a Korea-Vietnam critical minerals supply chain center, which will be launched this year.

Lam underscored the strong and exemplary nature of the bilateral relationship.

“We agreed that since the elevation of Vietnam-South Korea relations to a comprehensive strategic partnership in November 2020, our partnership has set a model of excellence. Both countries share a strong political trust and a commitment to advancing cooperation effectively across all sectors,” the general secretary said at the joint press conference.

President Lee Jae Myung welcomes To Lam, general secretary of the Communist Party of Vietnam, after inspecting the honor guard during an official ceremony at the presidential office in Seoul, Monday. Joint Press Corps

In addition to economic cooperation, Korea and Vietnam agreed to bolster collaboration in defense industries, public security and parliamentary and local government exchanges. They reaffirmed their commitment to working together toward peace on the Korean Peninsula and making tangible progress in resolving the North Korean nuclear issue.

The two leaders also recognized people-to-people exchanges between the two countries have reached 5 million annually, including more than 100,000 multicultural households of Korean and Vietnamese heritage.

Lam's state visit began with an official welcome ceremony, followed by the signing of the presidential office's guest book. The two leaders held a small-group summit, which was expanded later into broader talks, followed by the press conference. Meanwhile, the leaders' spouses participated in a separate friendship program.