South Korean and Vietnamese business and government leaders vowed to bolster cooperation in high-tech sectors, supply chains and energy, as both countries look to navigate mounting geopolitical tensions and protectionist trade policies.

The commitment was made during the Korea-Vietnam Business Forum held Tuesday at Lotte Hotel in Seoul, hosted by the Korea Chamber of Commerce and Industry together with South Korea’s trade ministry, the Vietnamese Embassy and Vietnam’s Finance Ministry. It was organized to mark General Secretary of the Communist Party of Vietnam To Lam’s visit to Korea, the first time Vietnam’s top leader had traveled here in 11 years.

“The domestic and global environment facing both countries today is not easy,” Chey Tae-won, chair of KCCI and SK Group, said in his opening remarks at the forum. “The spread of protectionism, such as the US imposing reciprocal tariffs, and rising geopolitical conflicts have increased uncertainty in the global economy, while existing growth models are reaching their limits.”

Chey stressed that such crises “cannot be overcome by the strength of one country alone,” calling for “solidarity and cooperation with trustworthy partners to make a breakthrough.”

“The two countries are optimal partners in times of crisis,” he said, highlighting digital and high-tech industries, supply chains, and energy as four key areas where the two countries can cooperate.

In response, Vietnam Finance Minister Nguyen Van Thang said Vietnam and South Korea are nations with “similar cultures and strategic partners that are key components of regional and global value chains.”

“The Vietnamese government welcomes South Korean companies to expand not only in Vietnam but also into third markets with us, and we are ready to engage in mutually beneficial cooperation, pledging support for large-scale joint projects.

Korean Prime Minister Kim Min-seok attended the forum, as well as about 300 corporate leaders, including Samsung Electronics President Park Seung-hee, SK Innovation CEO Choo Hyeong-wook, LG CNS President Hyun Shin-gyoon and Lotte Shopping CEO Chung Joon-ho.

Some 200 Vietnamese officials and business leaders were also present, including Lam, Foreign Minister Bui Thanh Son, Petrovietnam Chair Le Manh Hung, Viettel Chair and CEO Tao Duc Thang and Military Bank Chair Luu Trung Thai, among others.

The forum concluded with the signing of 52 memoranda of understanding between companies and institutions from both countries, including SK Innovation, Hyosung Heavy Industries, KT, Kepco KDN and the Korea Tourism Organization, pledging stronger collaboration across a wide range of industries, from energy, to shipbuilding, aviation, AI advanced materials and drones.

Trade between the two countries has expanded from $500 million when diplomatic ties were established in 1992 to $86.7 billion in 2024. At a summit held Monday, the leaders of Korea and Vietnam agreed to reach $150 billion by 2030.

Vietnam is now the third-largest trading partner for South Korea after China and the US, while South Korea maintains its No. 3 position with Vietnam. Seoul is also the largest foreign investor in Vietnam, with cumulative investment totaling $92.5 billion and about 10,000 South Korean companies operating in the country.

On Monday, South Korean President Lee Jae Myung hosted a state dinner to welcome Lam, reiterating expanded cooperation in high-tech energy and infrastructure projects between the two countries.

More than 120 senior officials and executives from major Korean conglomerates with significant operations in Vietnam attended the dinner at Cheong Wa Dae, which was previously the presidential residence. They include SK Group Chair Chey Tae-won, Hyundai Motor Group Executive Chair Chung Euisun, LG Group Chair Koo Kwang-mo, Lotte Group Chair Shin Dong-bin, and Daewoo Engineering and Construction Chair Jung Won-ju.

South Korea’s major conglomerates have poured billions of dollars into Vietnam over the past decade, relying on it as a critical partner in their industrial supply chain.

Samsung Electronics, which manufactures around half of all its smartphones in the country, has invested $23.2 billion since it started investing in Vietnam in 2008 and employs a workforce of over 90,000 people.

Samsung, as the largest foreign direct investor in Vietnam, said it will expand investment in artificial intelligence and semiconductors, as well as Vietnam’s digital transformation.

LG Group also has a significant presence in Vietnam, with its total investment reaching $8.24 billion in 2024, primarily through its subsidiaries that have their facilities in the Haiphong region: LG Electronics, LG Display and LG Innotek.

LG Display recently announced an additional $1 billion investment aimed at boosting OLED manufacturing capabilities at its Haiphong facility.

Daewoo E&C is also broadening its property development activities and investment portfolio across Vietnam, building on the success of its major township development, Starlake City in Hanoi. The construction company is leading multiple ventures, including a joint $900 million hydropower project with Vietnamese developer TTA, while also planning a $390 million investment in a new urban development project in Thai Binh province.

Daewoo E&C Chairman Jung said at the business forum Tuesday that his company has devoted the past three years to prepare for participation in a new urban developent project in the Thuong Cat region in Hanoi.

He said that the project will feature clean, eco-friendly space with Korean-style smart technologies and energy system. “We will also create a ‘K-Town’ showcasing Korean culture, food, medical services and beauty products,” said Jung.

On Tuesday, President Lee and first lady Kim Hea Kyung welcomed Lam and his wife Ngo Phuong Ly to the presidential guesthouse for a musical performance and a stroll, in a gesture symbolizing closer ties between the two countries, Lee’s office said.

https://m.koreaherald.com/article/10552531