South Korea and Vietnam have agreed to raise bilateral trade to US$150 billion by 2030, a 75% jump from US$86.7 billion in 2024, as the two countries look to expand cooperation in high-value sectors.

The pledge was made at an August 11 summit in Seoul between South Korean President Lee Jae Myung and Vietnam’s Communist party chief To Lam, who is on a state visit – the first by a Vietnamese party leader since 2014 and the first head of state to visit South Korea since Lee took office in June.

“We agreed to foster bilateral cooperation in a way that is more forward-looking and future-oriented,” Lee told reporters after the talks, adding that he hopes South Korean companies will participate in major Vietnamese infrastructure projects, including new nuclear power plants and Vietnam’s planned north-south high-speed railway.

The mammoth rail project, expected to span 1,541 kilometres and cost an estimated US$65 billion, is slated for completion by 2035, though ground-breaking remains pending as feasibility studies continue.

10 MoUs signed to deepen ties

The two leaders witnessed the signing of 10 memorandums of understanding ( MoUs ). These included a renewed agreement between the Bank of Korea and the State Bank of Vietnam, first signed in 2004, to deepen cooperation on monetary policy, currency issuance and other areas.

In the financial sector, South Korea’s Financial Supervisory Service and Vietnam’s State Securities Commission agreed to enhance capital market oversight, share regulatory expertise and conduct joint training and seminars.

In energy, Korea Electric Power Corporation and Vietnam National Industry and Energy Group ( Petrovietnam ) signed an MoU aimed at strengthening Vietnam’s understanding of South Korean-designed nuclear power plants and paving the way for South Korea’s entry into the country’s nuclear power sector.

Vietnam has been South Korea’s third-largest trading partner, after the US and China, for three consecutive years since 2022, according to the Korea International Trade Association. Bilateral trade grew more than 9% in 2024 from the previous year, momentum Seoul and Hanoi hope to build on to reach their US$150 billion target.