17 MOUs Signed at Korea-Vietnam Summit
Roadmap Presented to Achieve $150 Billion Trade Volume
During his state visit to Vietnam, President Yoon Suk-yeol held a summit with Vietnamese State President Vo Van Thuong on the 23rd, where they agreed to strengthen cooperation in the supply chain sector to secure key minerals, including rare earth elements, which are abundant in Vietnam. Vietnam, the world's second-largest rare earth reserve holder, appears to be positioning itself to counterbalance China, the world's largest.
President Yoon stated in a joint press release immediately after the summit, "We share the recognition that there is great potential for cooperation between the two countries regarding the development of Vietnam's abundant rare earth resources, and we have decided to establish a key minerals supply chain center."
On the same day, the two leaders presented a roadmap to double the trade volume from $87.7 billion in 2022 to $150 billion by 2030. They agreed to establish and operate a permanent joint committee to achieve the $150 billion target, and to jointly explore cooperation in supply chains, financial collaboration, startup ecosystem development, and new city development. Furthermore, they envisioned strengthening diplomatic and security cooperation to ensure unwavering economic cooperation between the two countries, advancing the comprehensive strategic partnership and concretizing South Korea's Indo-Pacific strategy.
Taking advantage of this state visit, President Yoon and President Thuong signed 17 memorandums of understanding (MOUs) in the fields of economy and diplomatic security. For economic cooperation, they signed MOUs on ▲ Korea Plus and Vietnam Plus ▲ economic cooperation through the Korea-Vietnam Economic Development Cooperation Fund (EDCF) and Economic Development Promotion Fund (EDPF) ▲ financial cooperation in transportation, public health, and climate change response ▲ establishment of the Korea-Vietnam key minerals supply chain center ▲ implementation of Article 6 of the Paris Agreement ▲ a letter of intent for startup ecosystem activation and personnel exchange ▲ an agreement on the launch of the electronic certificate of origin exchange system ▲ cooperation agreement on EDPF loans from 2023 to 2030 ▲ and an MOU on the Urban Growth Partnership Program for urban development cooperation.
Following the signing of the Korea Plus and Vietnam Plus MOUs, the two countries plan to operate a permanent joint committee to regularly discuss trade volume and sectors in real time to ensure the smooth achievement of the $150 billion trade target by 2030.
Additionally, to implement Article 6 of the Paris Agreement, which addresses climate crisis response, the two countries plan to actively explore cooperation by transferring South Korea's expertise in LNG power generation, hydrogen production, smart cities, and climate change response to Vietnam. To this end, KOICA will provide $30 million in grant aid over ten years for joint research, and the Korea-Vietnam Institute of Science and Technology (VKIST) will be established to jointly promote scientific and technological development.
Regarding exports, an electronic certificate of origin exchange system will be launched to facilitate convenience for import and export companies. President Yoon expressed his expectation that "the Free Trade Agreement (FTA) signed by the two countries in 2015 will be implemented more smoothly." Furthermore, through $4 billion worth of concessional aid via EDCF and EDPF, it is anticipated that support will be provided for Vietnam's advancement to a developed country by 2045.
A diplomatic and security cooperation plan was also proposed to stably achieve economic outcomes. The two countries agreed to annualize foreign minister dialogues to effectively monitor the implementation of action plans, transfer decommissioned naval vessels, strengthen cooperation between naval police, and enhance collaboration in the defense industry. President Yoon emphasized, "North Korea's nuclear and missile threats are the most urgent security challenges in the region, and South Korea and Vietnam will strengthen cooperation to lead a unified international response."
He added, "Vietnam is a key partner in implementing our Indo-Pacific strategy and the Korea-ASEAN solidarity initiative, as well as in Korea-ASEAN development and Korea-Mekong cooperation. We will communicate more closely with Vietnam." He also stressed, "Based on the MOU signed this time between the Korea Coast Guard and the Vietnam Ministry of Public Security, our government will actively support strengthening Vietnam's maritime security capabilities." Given Vietnam's recent conflicts with China over the South China Sea, South Korea's defense and military support is expected to be beneficial to Vietnam as well.
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