| President Yoon Suk Yeol and Vietnamese President Vo Van Thuong applaud during a joint press conference after their summit in the Presidential Palace of Vietnam in Hanoi, Friday (local time). Yonhap |
Seoul pledges $4 billion in loans to Hanoi by 2030
By Nam Hyun-woo
South Korea will strengthen its cooperation with Vietnam to “drive a united international response” to North Korea's nuclear and missile threats as part of the two countries' security partnership, President Yoon Suk Yeol said Friday.
“North Korea's nuclear and missile programs are the most urgent security threat in the region,” Yoon said during a press conference after his summit with Vietnamese President Vo Van Thuong in Hanoi. “In order to drive a united response from the international community, South Korea and Vietnam will strengthen their bilateral and ASEAN-wise cooperation.”
Yoon and Thuong held the summit in Hanoi upon the former's state visit to Vietnam. It is Yoon's first visit to an Association of Southeast Asian Nations (ASEAN) member country since taking office in May 2022. It is also Yoon's return visit after then-Vietnam President Nguyen Xuan Phuc made a state visit to Korea last December, during which the two countries elevated their ties to a comprehensive strategic partnership.
During the summit, the two leaders adopted an action plan on behalf of their respective governments to implement a comprehensive strategic partnership. This agreement entails areas such as security, diplomacy, the economy as well as other issues.
As part of the action plan, Yoon said that the two sides agreed to hold annual foreign ministerial talks to deepen their strategic discussions. This follows the two countries' agreement on holding defense ministers' talks every March.
South Korea's Coast Guard and Vietnam's Ministry of Public Security also signed a memorandum of understanding whereby South Korea will help strengthen Vietnam's maritime security capabilities.
Yoon also expressed hopes for expanding the two countries' cooperation concerning the defense industry, based on strengthening bilateral political trust.
| President Yoon Suk Yeol and Vietnamese President Vo Van Thuong pose with their spouses at the Presidential Palace of Vietnam in Hanoi, Friday (local time). Yonhap |
On the economic front, the two leaders agreed to join their efforts to achieve their goal of reaching $150 billion in bilateral trade by 2030 and to enhance partnerships in the key supply chain of minerals.
As part of this effort, the leaders agreed to establish a South Korea-Vietnam key mineral supply chain center. Vietnam is estimated to have approximately 20 million tons of rare earth reserves.
To assist Vietnam's sustainable growth, Yoon also pledged to expand loans being offered to Hanoi.
“The South Korean government will raise the upper limit of its Vietnam-bound Economic Development Cooperation Fund from $1.5 billion to $2 billion in the next seven years,” Yoon said. “We have also signed the Economic Development Promotion Facility worth $2 billion this time, so we plan to offer loans for Vietnam worth $4 billion by 2030.”
Along with the economic enhancements, the two countries decided to allow their citizens to drive in both of each other's countries with international driving permits for a period of up to one year from their date of entry.
“Vietnam is a key partner in our Indo-Pacific Strategy and Korea-ASEAN Solidarity Initiative,” Yoon said. “We will enhance communication and cooperation with Vietnam, a crucial partner, for the development of Korea-ASEAN relations and closer collaboration in Korea-Mekong cooperation.”
“Selecting Vietnam as the first state visit among ASEAN member countries reflects the fact that President Yoon and the South Korean government are setting the bilateral relationship as a high priority,” Tuong said during the summit.
“Vietnam views South Korea as an important country in its economic and social development projects and foreign policies, and seeks to develop an effective and long-term comprehensive strategic partnership.”