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From Trade to Tech: A New Era in Korea-Vietnam Relations
- Author Sungil Kwak
- Series324
- Date2025-09-03
On August 11, General Secretary Tô Lâm of the Communist Party of Vietnam paid a state visit to Korea to hold a summit with President Lee Jae Myung. During this meeting, the two leaders issued a joint statement laying the foundation for deepening the “Comprehensive Strategic Partnership,” which was signed in the 30th anniversary year of diplomatic relations between Korea and Vietnam.
In the joint statement, the two countries agreed to enhance cooperation in seven major areas, as follows:
1. Strengthening trust between leaders – A direct hotline between the two heads of state will be established, and annual summits will become a regular practice.2. Expanding strategic dialogue on diplomacy and security – A regular “2+2” meeting between foreign and defense ministers will be launched.3. Strengthening economic cooperation – Bilateral trade will grow from the current USD 86.7 billion to USD 150 billion by 2030.4. Enhancing collaboration in advanced technology, energy, and supply chains – Joint development of semiconductors, batteries, and rare earth materials will be pursued.5. Supporting Korean nationals and businesses in Vietnam – A one-stop service center for business support will be created.6. Expanding cultural and educational exchanges – Korean and Vietnamese language education will be further promoted in both countries.7. Working together on regional and global issues – Joint efforts will focus on peace on the Korean Peninsula and stability in the South China Sea.
One of the most significant achievements of the Korea–Vietnam summit was the agreement to position science and technology cooperation as a core pillar of the partnership and a key driver of future growth. This represents a clear departure from the past. Traditionally, bilateral relations have focused on trade- and investment-driven economic cooperation. However, this summit began by emphasizing political trust and highlighted new areas such as diplomacy, defense, and technology. In particular, elevating science and technology to the same level as economic cooperation marks a significant shift from previous approaches.
Despite Vietnam’s rapid economic growth, the country remains conscious of the “middle-income trap.” There is particular concern that premature deindustrialization, which other ASEAN countries have experienced, could also occur in Vietnam. Nevertheless, Vietnam enjoys certain advantages—such as a Confucian cultural heritage, similar to that of Northeast Asia, which fosters diligence and a strong interest in education. Moreover, the country has achieved high economic growth by attracting foreign direct investment (FDI), developing its manufacturing sector, and implementing an export-led growth strategy. However, Vietnam lacks sufficient domestic SMEs with the innovative capacity to directly supply intermediate goods to foreign-invested companies operating within the country. Science and technology cooperation with Korea could serve as a starting point to overcome this structural challenge.
At the same time, the decision by Korea and Vietnam to prioritize science and technology cooperation can be seen as a strategic move to transform the relationship from one centered on trade to one driven by high technology and innovation. The joint statement highlighted strengthening the Vietnam–Korea Institute of Science and Technology (VKIST), expanding joint research and education in areas such as AI, semiconductors, and advanced materials, and connecting the startup ecosystems of both countries. Combining Korea’s world-class expertise in semiconductors, AI, biotechnology, and energy with Vietnam’s young workforce, growing manufacturing base, and strong demand for Fourth Industrial Revolution technologies can strengthen both countries’ positions in global value chains and enhance supply chain resilience, creating a win-win outcome.
Making science and technology cooperation a new pillar is a bold and forward-looking decision, but unless these commitments yield tangible results, the move risks remaining symbolic. To successfully implement science and technology cooperation, both countries need strong institutional frameworks, talent development programs, a vibrant innovation ecosystem, active private sector engagement, and close policy coordination. Fortunately, both nations have agreed to focus on high-tech sectors such as smart infrastructure, electronics, semiconductors, AI, renewable energy, smart cities, and industrial clusters. This signifies a transition in economic cooperation from traditional manufacturing to a technology-driven model. Korea offers global competitiveness in high-tech industries, while Vietnam provides a dynamic labor force and a strategic position within ASEAN. Existing Korean investors such as Samsung, LG, and Hyundai form a solid foundation for deeper cooperation in higher value-added sectors.
However, several issues must be addressed to ensure successful Korea–Vietnam science and technology cooperation. There is still a shortage of specialized talent, and power and telecommunications infrastructure must be upgraded quickly. Moreover, the Vietnamese government should provide clearer guidelines to multinational companies on technology protection and intellectual property rights. This is why the effective implementation of Politburo Resolution No. 68, announced in May this year, is critical. The successful execution of the Resolution will send a strong signal to Korean and multinational companies that Vietnam is committed to real and meaningful change.
One practical approach to strengthening science and technology cooperation is the adoption of co-development models. These models involve collaboration from design to production and joint efforts to secure critical resources. To make this approach successful, high incentives must be offered to participating foreign companies, administrative procedures should be simplified and made more flexible, and mechanisms for risk-sharing and rapid decision-making should be established. By doing so, both countries can reinforce supply chains, position themselves as comprehensive strategic partners in high-tech industries, and enhance their global competitiveness. If these models are effectively applied to areas highlighted in the joint statement—such as AI, semiconductors, renewable energy, smart cities, and critical mineral supply chains—commercialization and innovation will accelerate even in today’s uncertain global environment.
The success of Korea–Vietnam science and technology cooperation ultimately depends on effective implementation. If the two countries can deliver early, visible results, Korea will secure a strategic foothold in Vietnam—one of ASEAN’s most dynamic economies—while Vietnam will move up the value chain, diversify its technology partnerships, and grow into a regional innovation hub. If practical cooperation is realized, the Korea–Vietnam partnership will not only adapt to global uncertainty but also serve as a starting point for shaping the future together.
Ph.D., Senior Research Fellow,
Executive Director, Center for Emerging Economy Studies
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