Since establishing diplomatic ties in 1992, Vietnam and South Korea have expanded their partnership across multiple domains, particularly trade and investment. In the past five years, South Korea has consistently ranked as Vietnam’s largest foreign direct investor and one of its leading trade partners.

According to data from the General Department of Customs, two-way trade between the two countries reached nearly USD 50 billion in the first seven months of this year. Vietnam’s exports to South Korea totaled USD 16.3 billion, while imports from South Korea amounted to USD 33.7 billion.

Vietnam’s exports to South Korea are dominated by high-tech and consumer goods. Computers, electronics, and components topped the list with USD 4.7 billion, followed by phones and accessories (USD 2.3 billion), machinery and spare parts (nearly USD 1.8 billion), and textiles (USD 1.5 billion).

In return, Vietnam imports mainly production-related goods and intermediate materials, including over USD 20 billion in electronics and components, more than USD 2.7 billion in machinery and tools, and over USD 1.2 billion each in raw plastic materials and petroleum products.

The economic ties between the two countries are not only strong in volume but also deeply complementary. Vietnam has become a manufacturing and export hub for many South Korean conglomerates. Conversely, South Korea provides Vietnam with essential machinery, technology, and raw materials for domestic production.

South Korea currently holds the top position in foreign direct investment (FDI) in Vietnam, with a cumulative registered capital of around USD 87–92 billion across more than 10,100 projects. This accounts for approximately 24.1% of project numbers and 18.2% of total FDI in Vietnam.

Key sectors attracting investment include electronics manufacturing, supporting industries, textiles, infrastructure development, and industrial real estate. Samsung Electronics alone has invested over USD 22 billion, making Vietnam its largest global smartphone and component production base. LG Display recently committed an additional USD 1 billion to expand its OLED screen factory in Hai Phong, raising its total investment to USD 5.6 billion. Meanwhile, Hana Micron invested another USD 930 million in a semiconductor packaging project in Bac Giang.

In contrast, Vietnamese investment in South Korea remains modest, focusing mainly on restaurants, food services, and other service sectors. This presents a significant opportunity for Vietnamese firms to expand into the Korean market and gain expertise in management and technology.

Toward a USD 150 billion trade target

According to the Ministry of Industry and Trade, the Vietnam-Korea Free Trade Agreement (VKFTA) and the Regional Comprehensive Economic Partnership (RCEP) have made Vietnam increasingly strategic in South Korea’s supply chain diversification plans. Korean demand for Vietnamese agricultural products, seafood, and garments remains robust and steady.

Last year, Vietnam-South Korea bilateral trade reached USD 81.5 billion, up 7.3% year-over-year. Earlier this year, the two countries agreed on a target to grow their trade to USD 150 billion by 2030, with a focus on balance and sustainability.

To realize this goal, South Korea’s Minister of Trade, Industry and Energy, Ahn Duk-geun, proposed enhanced cooperation in industrial and energy sectors. He called for both countries to promote collaboration in the supply chain of critical minerals by jointly implementing the Essential Mineral Supply Chain Technology Cooperation Center project. The initiative aims to create favorable conditions for Korean enterprises to invest in LNG power, clean energy, and nuclear energy projects in Vietnam.

The Ministry of Industry and Trade is proactively promoting Korean investment in key Vietnamese industries, including LNG power, port infrastructure, nuclear energy with small modular reactors, electric vehicle and battery manufacturing, production of machinery, equipment, components, consumer goods, and exports - particularly goods targeting the Korean market.

PV