Vietnam, RoK boost economic ties

Vietnamese and Korean diplomats have praised the rapid, sustainable, practical and comprehensive development of bilateral cooperation over the past quarter century, particularly the economic results.

Vietnam and the Republic of Korea are celebrating the 25th anniversary of their diplomatic ties this year. 

Both nations established diplomatic ties on December 22, 1992. In August 2001, the two countries signed a Joint Statement on “The Vietnam- Republic of Korea Comprehensive Partnership”. 

Photo for illustration.
Photo for illustration.

They upgraded their ties to strategic partnership during Korean President Lee Myeong Bak’s visit to Vietnam in November, 2009.

Impressive cooperation results

Economic cooperation between Vietnam and the Republic of Korea has developed rapidly over the past 25 years. RoK is the largest investor out of 112 countries and territories investing in Vietnam.

Last year, Korea exported much more to Vietnam than to Japan. Processing, manufacturing, real estate, and construction are among the 19 areas where Korea is investing in Vietnam. 

Pham Huu Chi, Vietnamese Ambassador to the Republic of Korea, said “In 1992, economic cooperation was almost nil. But by the end of last year, two-way trade reached more than US$42 billion. The Republic of Korea’s investment in Vietnam was US$50 billion."

Vietnam is the Republic of Korea’s biggest ODA recipient. The Republic of Korean ODA projects in Vietnam are effectively implemented and promptly disbursed. 

The two sides are discussing the signing of a Framework Credit Agreement in the 2016-2020 period under which Korea will provide US$1.5 billion worth of ODA to Vietnam. Korean Ambassador to Vietnam Lee Hyuk said “The rapid growth of bilateral ties due to the mutual economic support mechanisms. 

Many Korean enterprises have shifted their investment in China to Vietnam. Vietnam has a young, skilled, and hard working labor force while Korea has capital and the world’s leading technology. The combination of the two countries’ advantages has boosted bilateral economic ties.”

The two countries have maintained bilateral economic cooperation through the Inter-governmental Committee for Economic, Scientific and Technological Cooperation, and the Ministerial Joint Committee for Cooperation in Nuclear Power, Energy, and Industry. 

The bilateral Free Trade Agreement, which came into force on December 20, 2015, has created new momentum for raising bilateral trade to US$70 billion by 2020 under an agreement signed in 2003.

New flow of Korean investment to Vietnam

In the past 25 years, Korean investment in Vietnam has mainly focused on labor. In recent years, leading Korean technological groups including Samsung, LG, and Hyosung have increased investment in high technology in Vietnam. Since 2008, Samsung invested in two factories in Thai Nguyen and Bac Ninh province that produce 150 million mobile phones each year. Samsung, LG, and other global economic groups have enabled Vietnamese enterprises to participate in the accessories and spare part supply chain. 

Ambassador Kee Hyuk said, “Many Korean enterprises have praised Vietnam as the world’s most favorable investment destination and Korean investment into Vietnam will continue to rise. I encourage Korean investors not only to gain profit but also support Vietnam’s economy and create social benefits for Vietnam. Economic groups, and small and medium sized enterprises exercise social responsibility while doing business in Vietnam. As Korea’s Ambassador, I serve not only the Republic of Korea but also Vietnam”.

VOV

Other News

SBV raises short-term capital lending cap to 40%

SBV raises short-term capital lending cap to 40%

The new circular will help credit institutions have more room to provide capital to businesses and investment projects to support high economic growth in the next few years, while increasing flexibility in the SBV’s monetary policy management.

Business confidence in Vietnam rebounds strongly: UOB

Business confidence in Vietnam rebounds strongly: UOB

The study found that 85% of Vietnamese enterprises reported positive business sentiment, a sharp increase from 48% in 2025, when business confidence was weighed down by uncertainties surrounding US tariff policies and related trade developments.

Bac Ninh seeks high-quality foreign investment for sustainable growth

Bac Ninh seeks high-quality foreign investment for sustainable growth

According to Vice Chairman of the provincial People’s Committee Pham Van Thinh, the province aims to maintain stable and sustainable growth, improve the competitiveness of both the economy and local businesses, and make better use of free trade agreements (FTAs) to expand and diversify export markets.

Green building trend flourishes in Ho Chi Minh City's real estate landscape

Green building trend flourishes in Ho Chi Minh City's real estate landscape

The International Finance Corporation (IFC) highlighted the city's dominance in green-certified building floor space in Vietnam, reflecting the rapid expansion of the green building market with 780 completed green buildings encompassing over 18.69 million sq.m by 2025, predominantly certified by EDGE and LEED.

UK supports Vietnam in wind power and green finance development

UK supports Vietnam in wind power and green finance development

The United Kingdom officially announced two new climate cooperation initiatives to support Vietnam in its energy transition and green growth journey. These programs focus on offshore wind power development and the creation of a sustainable green financial ecosystem.

Ample room remains for Vietnam–India logistics cooperation

Ample room remains for Vietnam–India logistics cooperation

The GTTCI expert noted that alongside logistics and integrated warehousing, e-commerce is expected to be a particularly high-growth sector in the coming years. He described it as a multi-billion-dollar market with significant untapped opportunities for cooperation between Vietnam and India.

Exports gain momentum from high-tech growth drivers

Exports gain momentum from high-tech growth drivers

According to the Ministry of Industry and Trade, Vietnam’s exports reached 215.66 billion USD in the first five months of 2026, up 19.5% year-on-year. Twenty-six export items generated more than 1 billion USD in revenue each, including seven with turnover exceeding 10 billion USD.

Vietnam–China crossings see spike in ASEAN fresh produce

Vietnam–China crossings see spike in ASEAN fresh produce

Since the start of the summer harvest season, China's two major border gates with Vietnam, Youyi Guan in Pingxiang and Beilun 2 Bridge in Dongxing, have entered their peak period for handling imports of fresh agricultural and seafood products from member states of the Association of Southeast Asian Nations (ASEAN).

Cargo handling operations at Berths 3 and 4 of the Hai Phong International Gateway Port. (Photo: VNA)

AI reshapes logistics, raising bar for workforce skills

According to the Vietnam Logistics Business Association (VLA), the logistics sector will require around 2.2 million workers by 2030, including 1.6 million employees for logistics service providers and nearly 600,000 personnel supporting logistics operations in manufacturing and trading enterprises.

Robust dispute resolution framework key to Vietnam's IFC ambitions

Robust dispute resolution framework key to Vietnam's IFC ambitions

The development strategy for VIFC-HCMC envisions a comprehensive financial ecosystem encompassing green finance, carbon credits, financial technology (fintech), blockchain technology, digital assets, digital banking and other innovative business models. These highly internationalised sectors involve complex cross-border transactions and sophisticated legal structures.