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| President Yoon Suk Yeol speaks during the Korea- Vietnam Business Forum held at a hotel in Hanoi, Vietnam, Friday. Joint Press Corps. |
Two nations also sign MOUs to bolster ties in tackling supply chains, climate change
By Baek Byung-yeul
Korea and Vietnam agreed to expand economic cooperation by signing an agreement to increase bilateral trade to $150 billion by 2030 on the sidelines of President's Yoon Suk Yeol's visit to the Southeast Asian country, according to the industry ministry, Friday.
The two countries also signed a memorandum of understanding (MOU) to stabilize supply chains for key minerals and work together on climate change response, the ministry said.
The Ministry of Trade, Industry and Energy said that it signed the three deals with Vietnam's Ministry of Industry and Trade in the presence of President Yoon Suk Yeol and Vietnamese President Vo Van Thuong at the presidential palace in Hanoi.
The industry ministry said the three MOUs were signed by the industry ministries of the two nations to overcome global export challenges.
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| Minister of Trade, Industry and Energy Lee Chang-yang, second from left, shakes hands with Vietnam's Minister of Industry and Trade Nguyen Hong Dien, second from right, after signing MOUs on economic cooperation in the presence of President Yoon Suk Yeol and Vietnamese President Vo Van Thuong, right, at the presidential palace in Hanoi, Friday. Yonhap |
Among the three MOUs, the industry ministry said the two ministries will operate the PLUS organization, which includes trade-related officials from both countries to monitor and support progress toward the goal of expanding bilateral trade to $150 billion in 2030. In 2022, bilateral trade between the two nations amounted to $87.7 billion, making Vietnam Korea's third-largest trading partner after China and the U.S.
"The PLUS organization will play a role in identifying issues, exchanging information and conducting joint research to expand bilateral trade. The two countries also agreed to strengthen public-private consultation channels to resolve import and export difficulties and Korean companies' operations in Vietnam," the industry ministry said.
For supply chain-related cooperation, Vietnam, a resource-rich country, and Korea, a country with high value-added technologies such as refining, will establish the Core Mineral Supply Chain Center to provide a core mineral supply chain cooperation system.
Exploration cooperation, joint research and education and training between the two countries' institutions will be promoted to transform Vietnam's abundant core minerals into high value-added products. Also, the establishment of joint ventures between companies from both countries will also be supported to build stable supply chains and diversify import lines.
"According to the U.S. Geological Survey, Vietnam ranks second in the world in rare earth reserves as of 2022. It is also rich in tungsten (third in the world), tin (10th), bauxite (second) and titanium (12th). Through a horizontal cooperation model that combines Vietnam's abundant natural resources with Korea's excellent processing technology, it is expected that cooperation synergies will be maximized, with Korea securing a stable supply chain and Vietnam adding value to its resources," the ministry said.
The two countries also signed an MOU on joint response to climate change. This will allow Korean companies to invest in renewable, high-efficiency and low-carbon facilities in Vietnam and receive credit for the carbon reductions they generate through bilateral agreements. Korea has a target of reducing its carbon emissions by 40 percent from 2018 levels by 2030, and the second-largest part of this target is for overseas reductions, amounting to 37.5 million tons.
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| Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry (KCCI) and SK Group, speaks during the Korea- Vietnam Business Forum held at a hotel in Hanoi, Vietnam, Friday. Yonhap |
President Yoon also held a luncheon meeting with Korean business leaders in Vietnam. During the meeting, the president listened to the difficulties of doing business in Vietnam, such as power supply disruptions and problems securing highly skilled labor, and expressed the government's willingness to provide active support, the presidential office said.
The meeting was attended by officials from various sectors, including IT, automotives, chemicals, food, construction and finance. The presidential office added there are around 9,000 Korean companies in Vietnam. They have created more than 700,000 jobs locally, contributing to boosting exports and improving its GDP.
Later in the day, the Korea-Vietnam Business Forum was also held, attended by President Yoon and Vietnamese Prime Minister Pham Minh Chinh as well as more than 600 political and business leaders from Korea and Vietnam.
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| Samsung Electronics Executive Chairman Lee Jae-yong, from right, Minister of Employment and Labor Lee Jung-sik, LG Group Chairman Koo Kwang-mo and Minister of SMEs and Startups Lee Young attend the Korea-Vietnam Business Forum held at a hotel in Hanoi, Vietnam, Friday. Yonhap |
On the Korean side, 350 business leaders including Korea Chamber of Commerce and Industry (KCCI) and SK Group Chairman Chey Tae-won, Samsung Electronics Executive Chairman Lee Jae-yong; Hyundai Motor Group Executive Chair Chung Euisun, LG Group Chairman Koo Kwang-mo, Finance Minister Choo Kyung-ho and Industry Minister Lee Chang-yang.
"From a geopolitical perspective, Korean companies are looking for more stable and reliable partners, and Vietnam, with its freedom from political and security turbulence, is the best place to invest in terms of both efficiency and stability," the KCCI chairman said during the forum.
Through the forum, 111 MOUs and two contracts were signed in the areas of emerging industries, supply chains and climate change response as well as traditional cooperation in trade and investment.
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| Samsung Electronics Executive Chairman Lee Jae-yong, left, and Hyundai Motor Group Executive Chair Chung Euisun attend the Korea-Vietnam Business Forum held at a hotel in Hanoi, Vietnam, Friday. Yonhap |
The Korea-Vietnam Business Forum resulted in two contracts and 52 MOUs in various sectors, including defense, food, health care and consumer goods. Twenty-eight MOUs were signed in the fields of future high-tech industries, nuclear power generation and electric vehicles, and 29 MOUs were signed in the fields of renewable energy and greenhouse gas reduction.
The business meeting was the largest in its history, the industry ministry said. "The event is significant in that it laid the groundwork for the future cooperation between the two countries, which has developed in both quantity and quality. The event created a consensus that the two countries are partners in future cooperation, and the government will support the companies to materialize the MOUs into business projects," the ministry said.
