Korean and Vietnamese business heads urge for strategic alliance
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In a significant move, South Korea and Vietnam have agreed to significantly expand their bilateral trade to $150 billion by 2030, nearly doubling the current trade volume of approximately $86.8 billion.
This strategic partnership, formalised in August 2025, aims to diversify export markets and reduce reliance on any single country, particularly in response to potential disruptions from U.S. trade policy shifts. Both nations are intent on strengthening their economic resilience amid global economic uncertainties.
Key sectors for enhanced cooperation include semiconductors, machinery, and agricultural products. South Korea’s advanced manufacturing and electronics industries will deepen supply chain integration with Vietnam, while Vietnam will gain better access to South Korean markets, especially for textiles, seafood, and agricultural exports.
About 10,000 South Korean companies currently operate in Vietnam, contributing significantly to its economic growth. The bilateral partnership also emphasises nurturing Vietnamese talent and cooperation in advanced technological fields such as artificial intelligence, biotechnology, and shipbuilding.
Both countries plan infrastructure investments and regulatory alignment to streamline cross-border commerce. High-level coordination bodies and joint research and development initiatives in green technology are to be established for ongoing collaboration monitoring and expansion.
This trade expansion agreement is part of a broader strategy by South Korea and Vietnam to navigate the intensifying U.S.-China rivalry and global trade uncertainties, promoting closer military and economic ties as well.
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- The strategic partnership between South Korea and Vietnam encompasses strengthening cooperation in advanced technological fields, such as artificial intelligence, biotechnology, and shipbuilding, which are key components of both nations' industries.
- In line with their commitment to economic resilience, South Korea and Vietnam have agreed to invest in infrastructure and align regulations to facilitate seamless cross-border commerce, including in the finance sector that underpins business activities.
- While expanding their bilateral trade, South Korea and Vietnam are striving to reduce their reliance on any single market, as they prepare for potential disruptions in the business environment due to policy shifts in the U.S.
- The enhanced cooperation extends beyond trading economic goods, with both nations planning to establish high-level coordination bodies and joint research and development initiatives, focusing on green technology to address environmental concerns within the broader context of diplomacy.
