Vietnam and South Korea to deepen ties on industry, investment, technology

On April 23 in Hanoi, the Ministry of Finance of Vietnam, in coordination with South Korea’s Ministry of Trade, Industry and Energy, hosted the Vietnam-South Korea Economic Forum. The event was co-chaired by Vietnamese Prime Minister Le Minh Hung and South Korean President Lee Jae Myung, bringing together more than 500 delegates from both countries.

Prime Minister Le Minh Hung

Speaking at the forum, Prime Minister Hung explained that since the establishment of diplomatic relations, Vietnam-South Korea cooperation has expanded rapidly in both scale and depth.

South Korea is now Vietnam’s largest foreign investor and third-largest trading partner, with nearly 10,500 active projects and total registered capital exceeding $100 billion. South Korean investments have created close to one million jobs and account for more than 30 per cent of Vietnam’s total export value.

This partnership has played a pivotal role in shaping Vietnam’s key industries, from electronics and manufacturing to high-tech sectors. Cooperation in technology, innovation, and digital transformation is emerging as a strategic pillar, opening new development space such as research and development centres in Vietnam.

At the same time, Vietnam offers South Korean businesses long-term strategic advantages: a stable and secure investment environment; a cost-competitive manufacturing base with an increasingly skilled workforce; a market of over 100 million people with a fast-growing middle class; and strong connectivity to global markets through next-generation free trade agreements. These factors help South Korean companies enhance their competitiveness within regional and global value chains.

The PM noted that the world is undergoing profound transformation, with global supply chains being restructured, intensifying technological competition, and sustainability becoming a core requirement. In this context, Vietnam-South Korea economic cooperation must evolve beyond scale towards higher quality.

“We must move beyond investment and trade to elevate our partnership towards jointly building the industrial and technological ecosystems of the future,” he said.

Based on this vision, Hung proposed three strategic directions. First, jointly build a next-generation industrial and technology ecosystem, forming integrated clusters for production, research, and innovation where businesses from both countries engage more deeply in high-tech and emerging sectors.

Second, restructure supply chains towards greater flexibility, resilience, and higher value, enhancing adaptability while increasing technological content and value-added.

Third, strengthen knowledge linkages and innovation by moving beyond technology transfer to co-research, co-development, and co-commercialisation, grounded in close collaboration among businesses, researchers, and academic institutions from both countries.

Vietnam is entering a new phase of development driven by science, technology, and digital transformation, Hung added, while increasingly leveraging the private sector as a key growth engine.

"The Vietnamese government is committed to completing the institutional framework and undertaking strong reforms to create the most favourable investment environment," he said. "This will enable both domestic and foreign businesses – including South Korean enterprises – to invest, cooperate, produce, and operate sustainably and for the long term in Vietnam."

President Lee Jae Myung

South Korean President Lee Jae Myung described the 33-year relationship between Vietnam and South Korea as one of continuous achievement, underscoring that mutual trust is the shortest path to shared prosperity.

Since diplomatic ties were established in 1992, bilateral trade has grown from just $6.5 billion to nearly $100 billion today. More than 10,000 South Korean companies are currently operating in Vietnam, making South Korea its largest investor.

“The most valuable achievement, in my view, is the deep affection shared between the peoples of our two countries. As the great poet Nguyen Du wrote, ‘The heart is worth more than talent.’ Sincere respect and goodwill, beyond relative interests, form the core foundation that has made Vietnam-South Korea cooperation ever closer,” President Lee Jae Myung said.

“It is thanks to this steadfast trust and friendship that South Korea and Vietnam can continue to grow together and shape the future without being shaken by any risks. Just as Vietnam’s leap forward once mirrored South Korea’s growth, Vietnam’s future will now represent opportunities for South Korea,” he added.

Amid rising global uncertainty and intensifying competition in advanced technologies such as AI, he noted that Vietnam-South Korea cooperation is becoming even more resilient and meaningful.

President Lee Jae Myung proposed three priorities to further deepen bilateral cooperation. First, jointly 'plant seeds' for future industries. Cooperation has expanded beyond traditional manufacturing into emerging fields such as AI, semiconductors, and digital technologies. South Korean companies have already established a strong foundation in Vietnam, particularly in semiconductor packaging, with potential for further expansion.

“We will spare no effort in supporting Vietnam’s young talents, those who carry the spirit of innovation, to achieve breakthroughs in future technologies. I also respectfully request Prime Minister Le Minh Hung’s close attention to ensuring that South Korean companies face no obstacles in their business operations in Vietnam,” he said.

Second, strengthen cooperation in energy and supply chains. Ensuring stable access to energy resources is essential for sustainable growth. Joint mechanisms in strategic resources such as crude oil and rare earths can help build resilient supply chain ecosystems.

Third, advance sci-tech cooperation. In an era where technological leadership defines national strength, bilateral collaboration must move to a higher level through comprehensive frameworks that unlock new opportunities in innovation.

The president concluded, "We are living in a time of profound upheaval, where the global economic order is being shaken. To navigate these uncertainties, I recall President Ho Chi Minh's teaching, 'Remain steadfast in principles while adapting to change.' The South Korean government will serve as a compass and pillar of support for businesses from both countries to overcome difficulties and usher in a new era of shared prosperity."

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