From Supply Chains and Technology to Finance... Korea and Vietnam Engage in Comprehensive Economic Cooperation

9 Economic Agreements and MOUs Signed in Supply Chain, Trade, Technology, Finance, and Healthcare
Yoon: "Vietnam, a Key Partner in Indo-Pacific Strategy and Korea-ASEAN Solidarity Initiative"

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] On the 5th, President Yoon Suk-yeol held a Korea-Vietnam summit meeting on the occasion of the state visit of Nguyen Xuan Phuc, President of Vietnam, and signed memorandums of understanding (MOUs) with Vietnam in a wide range of economic fields including supply chains, digital, energy, and bio sectors.

President Yoon stated at a joint press conference immediately after the Korea-Vietnam summit held at the Yongsan Presidential Office in the afternoon that the two countries have established a comprehensive strategic partnership and that "economic cooperation will be further enhanced." On this day, Korea and Vietnam signed a total of nine economic agreements and MOUs.

Since Vietnam is a key country in President Yoon's Korea-ASEAN solidarity initiative and Korea's largest development cooperation partner in Southeast Asia, it is interpreted as an intention to strengthen their regional position through expanding mutually beneficial investments. President Yoon said, "Vietnam is a core partner in our 'Indo-Pacific strategy' and 'Korea-ASEAN solidarity initiative,'" adding, "Korea and Vietnam will always work together to foster freedom, peace, and prosperity in the region."

The two countries agreed to first strengthen cooperation in the supply chain of critical minerals with Vietnam, enhancing collaboration in exploration and development technologies, investment promotion, stable supply, and securing a joint global critical minerals supply chain. Minister of Trade, Industry and Energy Lee Chang-yang and Vietnamese Minister of Industry and Trade Nguyen Hong Dien signed three MOUs related to critical mineral supply chain cooperation. As Vietnam is the world's second-largest rare earth deposit country after China, it is expected that the driving force for the development of advanced industries in both countries will expand. Rare earth elements are essential in semiconductors, superconductors, high-performance batteries, displays, and electric motors.

Regarding this, President Yoon emphasized, "By encompassing key economic security issues, the horizon of cooperation between the two countries is expected to broaden," and added, "We share the recognition that there is great potential for cooperation between the two countries regarding the abundant rare earth development in Vietnam and have agreed to seek specific cooperation plans."

Moreover, the two countries agreed to steadily expand mutual trade and investment to achieve the total trade volume target of $100 billion by 2023 and aim for $150 billion by 2030. President Yoon promised, "The two countries are already optimal partners in trade and investment. The government will actively support so that companies from both countries can further activate trade and investment."

On the occasion of this summit, the Korean government requested Vietnam to support and pay attention to resolving difficulties faced by Korean companies operating in Vietnam in terms of trade and investment activation, as well as prompt approval of financial institutions, issuance of work permits, and strengthening of pension rights. The Vietnamese side responded positively to this.

Cooperation will be strengthened not only in information and communication, advanced technology, infrastructure construction, and energy sectors but also in health, medical care, and education. The Korean government will support the establishment of the Vietnam Disease Control Center and allow Korean companies to participate in bidding for medical equipment in Vietnamese public institutions. Since Korean is the first foreign language in Vietnam, the Korean government will also assist in writing Korean language textbooks. Regarding this, President Yoon said, "Active human exchanges between the peoples of the two countries are the foundation for the development of Korea-Vietnam relations," and pledged, "The government will spare no support to protect the rights, safety, and promote exchanges between the peoples of the two countries."

This content was produced with the assistance of AI translation services.