Korea, Vietnam forge stronger economic ties during Yoon’s visit

President Yoon Suk Yeol (second from right, front row), Chairman of SK Group and the Korea Chamber of Commerce and Industry Chey Tae-won (right, front row), Kim Keon Hee (third from right, front row), Hyundai Motor Group Chairman Chung Euisun (left, second row), Korea International Trade Association Chairman Christopher Koo (second from left, second row) and Daewoo Engineering and Construction Chairman Jung Won-ju (third from left, second row) pledge allegiance to the nation during a dinner held in Hanoi during Yoon's state visit to the Southeast Asian country, Thursday. (Yonhap)

President Yoon Suk Yeol concluded his state visit to Vietnam, solidifying economic cooperation between the two nations and ushering in a new era of forward-looking collaboration.

Accompanied by a 205-member business delegation, President Yoon observed the signing of 111 memoranda of understanding between business leaders of the two countries as well as trade consultations made for some 100 companies. Calling it a significant development in bilateral trade, Yoon's visit has set the stage for both countries to ambitiously pursue a $150 billion trade volume by 2030, according to his senior economic secretary Choi Sang-mok.

During a dinner with Korean business leaders in Hanoi, President Yoon reaffirmed his unwavering support for their export efforts, recognizing their potential as a driving force for the nation's economy. He also encouraged business leaders to seek government assistance in overcoming any challenges they may encounter during their operations.

The sentiments expressed by SK Group Chairman Chey Tae-won during the Korea-Vietnam Business Forum on Friday further underscored the importance of the strengthened ties. Describing Vietnam as an “optimal investment destination,” Chey emphasized the nation's stability and efficiency that Korean companies seek in a geopolitical context.

Since establishing diplomatic relations in 1992, the growth in bilateral exchanges between Korea and Vietnam has grown rapidly. Vietnam has become South Korea's third-largest trading partner, following China and the United States. Meanwhile, Korea has also solidified its position as Vietnam's top foreign direct investment nation. In celebration of their 30th anniversary of diplomatic ties last year, the relationship between the two countries was elevated to a "comprehensive strategic partnership."

Banners are on display in welcoming President Yoon Suk Yeol's state visit to Vietnam in Hanoi, Thursday. (Daewoo E&C)

During Yoon’s visit to Hanoi, the two leaders also took steps to solidify their core supply chain cooperation system in response to the global supply chain reorganization movement. By combining Vietnam's abundant natural resources with Korea's energy technology, the two countries aim to establish a win-win structure and secure high-quality rare metal materials. This collaboration will contribute to their mutual growth and resilience, according to the presidential office.

The economic ties between the two nations extend beyond trade and cooperation agreements. Korean construction and infrastructure companies have been actively investing in Vietnam, forging partnerships with local firms.

Among the new partnerships, South Korea’s leading construction firm Daewoo Engineering & Construction and Vietnamese investment company Truong Thanh Development & Construction Investment Joint Stock Company (TTA) have signed a deal for collaboration on new and renewable energy projects, which will be instrumental in advancing Vietnam's power infrastructure.

TTA Chairperson Nguyen Thi Ngoc (center), Daewoo E&C Chairman Jung Won-ju (second from left) and Daewoo E&C overseas project head Han Seung (third from left) pose for a photo after signing a memorandum of understanding in Hanoi, Vietnam, Friday. (Daewoo E&C)

By Shin Ji-hye(shinjh@heraldcorp.com)