Lee casts Korean role in Vietnam nuclear project as ‘new horizon for strategic ties’

Lee, Lam agree to deepen supply chain cooperation through joint critical minerals center

President Lee Jae Myung speaks during an expanded summit with To Lam, who serves as current general secretary of the Communist Party of Vietnam and president of Vietnam, at the Presidential Palace in Hanoi, Vietnam, on Wednesday. (Yonhap)

HANOI, Vietnam — President Lee Jae Myung cast Seoul’s participation in Vietnam’s energy-transition projects, including the construction of a nuclear power plant, as “a new horizon of strategic cooperation,” according to Cheong Wa Dae.

Lee made the remarks during summit talks with To Lam, president of Vietnam and general secretary of the Communist Party of Vietnam, at the Presidential Palace in Hanoi on Wednesday.

“The two leaders agreed to elevate cooperation to the next level in future-oriented and strategic sectors, including trade and investment, energy and nuclear power, infrastructure, science and technology, and cultural and people-to-people exchanges,” Lee Kyu-youn, senior presidential secretary for public relations and communication, said in a statement.

The summit resulted in the signing of 12 memorandums of understanding across sectors, including nuclear power plant construction, electricity infrastructure, science and technology, culture, health and water security, aimed at strengthening bilateral cooperation.

During the summit, Lee and Lam “agreed to expand cooperation for energy security and supply chain stability,” the senior secretary said.

“President Lee said he hopes the two countries can open a new horizon of strategic cooperation, including in the energy transition, through South Korea’s participation in Vietnam’s new nuclear power plant construction and electricity infrastructure projects,” Lee Kyu-youn said.

“General Secretary To Lam shared that view and said he hopes the two countries will further strengthen their energy-security partnership and contribute to each other’s sustainable development,” he added.

As an outcome of the summit, South Korea and Vietnam signed two MOUs to deepen cooperation in nuclear energy. The agreements are intended to explore options for new nuclear power plant construction in Vietnam and review the feasibility of South Korean financial support, as Seoul seeks to win the project to build the Ninh Thuan No. 2 nuclear power plant.

To Lam, general secretary of the Communist Party of Vietnam and president of Vietnam, speaks during an expanded summit with President Lee Jae Myung at the Presidential Palace in Hanoi, Vietnam, on Wednesday. (Yonhap)

Lee bets on Vietnam growth sectors

Lee Kyu-youn explained that “the two leaders also agreed to strengthen cooperation for supply chain stability by combining Vietnam’s abundant resources with Korea’s technology, centered on the ‘critical minerals supply chain center’ the two countries are jointly pursuing.”

Discussions on a Korea-Vietnam critical minerals supply chain center began in 2022. During Lam’s state visit to South Korea last August, the two sides exchanged an agreed record on a critical minerals supply chain technology cooperation center.

Under the initiative, South Korea plans to launch a five-year, 16.6 billion won ($11.2 million) official development assistance project from 2025 to 2029 to establish the Vietnam critical minerals supply chain technology cooperation center.

“President Lee also requested the participation of Korean companies in large-scale infrastructure projects being pursued as part of Vietnam’s national transformation plan, including high-speed rail, new cities and new airports,” the senior secretary said.

“(Lee) said he hopes Korea can join Vietnam’s journey toward becoming an advanced economy as an optimal partner.”

Projects Seoul is eyeing include the Dong Nam New City Development Zone 1 project, worth $740 million, and the Gia Binh new airport operations consulting project, valued at $70 million.

“General Secretary To Lam said Vietnam hopes to learn from Korea’s experience for its national development and expressed hope that Korean companies with excellent technology and capabilities will contribute substantially to Vietnam’s national infrastructure development,” the senior secretary added.

The two leaders also agreed to accelerate efforts to achieve their goal of $150 billion in bilateral trade by 2030.

“President Lee also emphasized the importance of predictable business conditions for Korean companies operating in Vietnam and requested special attention and cooperation in resolving difficulties, including value-added tax issues,” the senior secretary said.

“General Secretary To Lam said Vietnam would spare no effort to provide the support needed to create a stable and friendly business environment for Korean companies.”

The two sides also agreed to expand cooperation in finance.

“President Lee asked for cooperation to help expand the presence of Korean financial institutions in Vietnam,” the senior secretary said.

“General Secretary To Lam replied that he would work toward that end and said he hopes the financial authorities of the two countries will communicate closely and cooperate to promote digital transformation and innovation in the financial sector.”

According to the senior secretary, Lee’s state visit to Vietnam was part of Seoul’s relay summit diplomacy toward Southeast Asia this year, following his visits to Singapore and the Philippines and the state visit to South Korea by Indonesian President Prabowo Subianto in early April.

Lee's state visit to Hanoi "can be seen as an opportunity to complete the best possible partnership with Vietnam, one of our key cooperation partners, across the full range of fields, including politics, the economy and culture,” the senior secretary said.

“The visit is expected to contribute to the mutually beneficial and sustainable development of both countries by expanding the horizon of cooperation with Vietnam in future growth sectors such as energy, infrastructure and science and technology,” he added.