New developments in Vietnam- RoK relationship

Strategic cooperative partnership

The two countries’ relationship has developed robustly over the years. The Republic of Korea is Vietnam’s biggest investor with a total investment of more than US$52 billion and Vietnam’s second largest provider of official development assistance (ODA) which focuses on administration, education, water management, and infrastructure.

After the signing of a Free Trade Agreement, bilateral trade has increased sharply reaching US$61.5 billion last year, US$16.5 billion more than the previous year. Vietnam’s biggest trade deficit was with the Republic of Korea last year. 

Republic of Korea Ambassador to Vietnam Lee Hyuk said “The growth of bilateral ties is attributed to their reciprocal economic mechanism. Many Korean businesses have moved their investment from China to Vietnam. Vietnam has an abundant young, skilled, and diligent workforce while the Republic of Korea has capital and world-leading technology. The combination of the two countries’ strengths has boosted bilateral economic cooperation.”

Cultural and social similarities have also contributed to stronger ties. The Republic of Korea has recently emerged as one of Vietnam’s major tourism market, 2nd biggest after China. Last year, more than 2.5 Korean tourists visited Vietnam, 128% more than the previous year. It is also the second largest importer of Vietnamese workers. The country has helped train Vietnamese human resources. 

Former Deputy Minister of Labor, Invalids and Social Affairs Nguyen Trong Dam said “We are glad about the development and expansion of bilateral ties. Five Korea-funded vocational training colleges are in effective operation. We hope that the Republic of Korea will provide more ODA to Vietnam to upgrade other vocational schools. In the near future, the two sides will seek ways to boost cooperation in social support, response to an aging population, and assistance for disabled people.”

Visit reflects New Southern Policy

Since he took office last May, President Moon has implemented a sustainable growth policy, revised Korea’s external policy, increased cooperation with other major countries, strengthened Korea’s New Southern Policy which focuses on ASEAN and India, and has upgraded the Republic of Korea -ASEAN ties to the level of its ties with the US, China, Japan, and Russia. 

Vietnam is the second ASEAN country that President Moon has visited since he took office. During the visit, leaders of the two countries will discuss ways to strengthen political and diplomatic ties. The two sides will issue a Joint Statement and sign a number of cooperative agreements on economics, trade, tourism and culture. President Moon will attend the groundbreaking ceremony of the Vietnam-RoK Scientific Research Center and the Business Forum. 

Ambassador Lee Hyuk said “I’m optimistic about bilateral ties in the next 25 years. Korean enterprises consider Vietnam to be the most favorable investment destination and Korea’s investment in Vietnam will continue to rise. Though the bilateral relationship has improved, I believe that it’s not yet at its peak. We will continue to elevate our ties to the highest level.”