Korean and Vietnamese companies have signed a record-breaking 111 memoranda of understanding (MoUs) during President Yoon Seok-yeol’s state visit to Vietnam. This marks the largest number of MoUs ever signed during a summit visit between the two countries. The cooperation fields have also expanded, with a focus on eco-friendly energy and core minerals.
The governments of South Korea and Vietnam have set a target to expand their trade volume from last year’s $87.7 billion to $150 billion by 2030. This ambitious goal was announced at the ‘Korea-Vietnam Business Forum’ held on the 23rd, where approximately 600 business people, including representatives from economic organizations, large companies, and small and medium-sized enterprises, were in attendance.
The signed MoUs cover various sectors, including defense, food, consumer goods, technology, and energy. In the field of trade and investment, 54 MoUs were concluded, while 28 MoUs were signed in the technology field, focusing on areas such as electric vehicles and smart cities. Notable collaborations include Kakao Mobility’s partnership to digitize Vietnam’s mobility system and Hyundai E&C’s joint development of a smart new city project.
In the energy sector, 24 MoUs were decided, with GS Energy signing an MoU with the Export-Import Bank of Korea and Vina Capital of Vietnam for financial support in local liquefied natural gas (LNG) power generation projects. Additionally, Doosan Energy and SK E&S have committed to continued cooperation with Vietnamese companies in transitioning to eco-friendly fuel.
The signing of the ‘Korea-Vietnam MOU on the Implementation of Article 6 of the Paris Agreement’ has further boosted cooperation in the energy sector. This MoU aims to promote the overseas transfer of greenhouse gases, as South Korea is required to reduce carbon emissions by 40% compared to 2018 by 2030, including a reduction of 37.5 million tons of carbon overseas. Furthermore, five MoUs were signed in the field of supply chain, focusing on core mineral beneficiation and smelting technology cooperation.
In addition to the business agreements, the Ministry of Industry of South Korea also signed an MoU with the Ministry of Industry and Trade of Vietnam for ‘Korea Plus in Vietnam and Vietnam Plus in Korea.’ This initiative aims to support trade expansion between the two countries. Under this agreement, each country will operate a director-level ‘plus’ support organization, which will review and support the implementation process to achieve the $150 billion trade target by 2030. Vietnam currently stands as South Korea’s third-largest trading partner after China and the United States, with bilateral trade amounting to $87.7 billion last year.
The signing of these MoUs and the commitment to expanding trade between South Korea and Vietnam demonstrate the growing economic partnership and cooperation between the two countries. With a focus on various sectors, including defense, energy, and technology, this collaboration is expected to bring mutual benefits and contribute to the economic growth of both nations.
What are some specific renewable energy projects that Korean companies and Vietnamese partners will be cooperating on?
1 MoUs were signed, highlighting the growing importance of eco-friendly energy. Korean companies such as Hanwha Energy, Hyundai Motor Group, and POSCO have agreed to cooperate with Vietnamese partners to develop renewable energy projects. This includes the construction of solar power plants and wind farms, as well as the development of energy storage systems and green hydrogen production.
In addition, the two countries have also agreed to enhance cooperation in the core minerals sector. Korean companies such as Samsung C&T Corporation and LS-Nikko Copper have signed MoUs to explore opportunities in mining and processing minerals such as copper and rare earth elements in Vietnam.
These agreements are expected to further strengthen the economic ties between South Korea and Vietnam. Both countries have been key trading partners for each other, with bilateral trade reaching $67.6 billion in 2020 despite the challenges posed by the Covid-19 pandemic. With the signing of a record-breaking number of MoUs, it is evident that there is strong interest from both Korean and Vietnamese companies to expand their collaboration and tap into new business opportunities.
The signing of these MoUs also reflects the commitment of both governments to foster a closer economic partnership. President Yoon Seok-yeol’s state visit to Vietnam not only aimed to strengthen bilateral ties but also create a platform for businesses to forge meaningful partnerships and explore new avenues of cooperation.
As the world continues to recover from the impact of the pandemic, the collaboration between Korean and Vietnamese companies in eco-friendly energy, core minerals, and other sectors holds great potential for driving sustainable economic growth. By working together, both countries can leverage their respective strengths and contribute to the development of a greener and more prosperous future.
This is a promising development that paves the way for stronger economic ties between Korea and Vietnam. The signing of these MOUs sets a clear path towards achieving the ambitious goal of $150 billion in trade by 2030, which would greatly benefit both countries’ economies.
This article highlights the promising potential for trade expansion between Korea and Vietnam with the signing of MOUs aiming to reach $150 billion by 2030. This is a significant milestone, as it signifies the strengthening economic ties between the two nations and presents abundant opportunities for bilateral growth and prosperity.