Vietnam and South Korea inked a dozen agreements covering tech innovation and nuclear power, aiming to boost trade to $150 billion by 2030.
HANOI: Vietnam’s top leader To Lam hosted South Korean President Lee Jae Myung in Hanoi on Wednesday, announcing a dozen cooperative agreements including on tech innovation and development of nuclear power plants.
South Korea is Vietnam’s biggest source of foreign investment and one of its top trading partners, with two-way commerce topping $90 billion last year.
Lee’s visit showed “high political trust” between the two countries, Lam said during the meeting at the presidential palace.
“Vietnam welcomes South Korean companies to make new investments and expand existing projects, with a focus on the development of infrastructure, smart cities, semiconductors, AI data centres, nuclear power, smart seaports,” the Vietnamese leader said.
It was the second meeting in less than a year between the two Asian leaders, following Lam’s visit to Seoul in August.
After Wednesday’s agreements, South Korea’s Lee said that with geopolitical uncertainty at “unprecedented heights” and technological competition intensifying, “we hope that the peoples, businesses and governments of both countries will build on the quantitative achievements we have forged together”.
Cooperation for development
Hanoi wants more South Korean investment in infrastructure, advanced electronics manufacturing, semiconductors, artificial intelligence and renewable energy.
Among the agreements signed on Wednesday was a framework for a Vietnam-South Korea “master plan on cooperation in science, technology and innovation”.
Other agreements dealt with digital cooperation, intellectual property and the development of nuclear power plants.
Lam, who became president this month in addition to Communist Party boss, is pushing a “new growth model” that prioritises digital and technological innovation as Vietnam aims to escape the “middle-income trap”.
The World Bank said in its 2024 development report that countries usually hit such a “trap” when they reach around 10 percent of annual US GDP per capita, which can prove tough to move past.
Vietnam and South Korea have set a target of achieving $150 billion in bilateral trade by 2030.
South Korean giant Samsung is Vietnam’s largest foreign corporate investor, having sunk more than $23 billion into the Southeast Asian country, according to the finance ministry.
Samsung Electronics is planning to invest another $4 billion in a chip packaging factory in northern Thai Nguyen province, according to recent reports.
