Government to Cooperate with Vietnam on Critical Mineral Supply Chains and Ammonia Power Generation Technology Development

Nguyen Xuan Phuc, President of Vietnam
[Photo by Yonhap News]

[Asia Economy Reporter Seongpil Jo] The government has decided to strengthen cooperation with Vietnam in the supply chain of critical minerals and the development of ammonia co-firing power generation technology, taking advantage of the visit of Nguyen Xuan Phuc, President of Vietnam.

On the 5th, Lee Chang-yang, Minister of Trade, Industry and Energy, signed a total of three agreements and memorandums of understanding (MOUs) with Nguyen Hong Dien, Minister of Industry and Trade of Vietnam, at the signing ceremony held after the summit between President Yoon Suk-yeol and President Phuc. The two countries agreed to cooperate first in securing exploration and development technologies for critical minerals and promoting investments for stable supply. The government expects to create synergy with Vietnam, which ranks second in the world in rare earths and third in tungsten, based on Korea's critical mineral mining and refining technologies.

Furthermore, the ministers of both countries agreed to add ammonia co-firing technology development to the power industry cooperation MOU signed in 2018 and include offshore wind power in the renewable energy cooperation to jointly strive for carbon neutrality. An exchange of notes on the implementation of the 'UK-Vietnam cumulation of origin provision' was also signed, which applies preferential tariffs when Korean-made textiles processed in Vietnam are exported to the UK. Through this, the government expects the export of Korean textiles to Vietnam, which amounted to $931 million last year, to expand further.