Leaders of Korea and Vietnam agree to expand security, economic ties

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Leaders of Korea and Vietnam agree to expand security, economic ties

Published: 23 Jun. 2023, 15:35 Updated: 25 Jun. 2023, 17:59

Korean President Yoon Suk Yeol, center left, and first lady Kim Keon-hee, left, pose for a commemorative photo with Vietnamese President Vo Van Thuong, center right, and first lady Phan Thi Thanh Tam, right, at the bilateral summit at the presidential palace in Hanoi Friday. [JOINT PRESS CORPS]

HANOI – Korean President Yoon Suk Yeol held a bilateral summit with Vietnamese President Vo Van Thuong Friday in Hanoi during a state visit focused on expanding security and economic cooperation and strengthening the two countries' comprehensive strategic partnership.

"Today, President Thuong and I discussed ways to further solidify our cooperation befitting the upgraded bilateral relationship and contributing to freedom, peace and prosperity in the Indo-Pacific region," Yoon said at a joint press briefing immediately following his bilateral summit with the Vietnamese leader.

The two countries agreed to adopt an action plan for the implementation of the bilateral comprehensive strategic partnership, which was upgraded from a strategic cooperative partnership last year, and to develop Korea-Vietnam relations in a more substantial way, according to their joint press statement.

This includes strengthening strategic cooperation in foreign affairs and security, and expanding economic cooperation through launching an electronic platform facilitating data exchange for exports and imports.

Earlier that morning, Yoon and first lady Kim Keon-hee were greeted by an honor guard at a welcoming ceremony at the presidential palace in Hanoi.

The two leaders entered bilateral summit talks, signed memoranda of understanding (MOUs) and held a joint press briefing.

Korean President Yoon Suk Yeol, right, and Vietnamese President Vo Van Thuong observe an honor guard at the welcoming ceremony ahead of their bilateral summit at the presidential palace in Hanoi on Friday. [JOINT PRESS CORPS]

According to their joint statement, the sides agreed to hold the foreign ministers' meetings annually to deepen strategic communication. Through an MOU between the Korean Coast Guard and the Vietnamese Ministry of Public Security, Korea will actively support the strengthening of Vietnam's maritime security capabilities.

Based on "solidified political trust" between the two countries, cooperation in the defense industry will also be expanded.

The two countries also agreed to accelerate economic cooperation in order to achieve the goal of reaching $150 billion by 2030.

To better implement the bilateral free trade agreement (FTA), they agreed to establish an electronic origin data exchange system, which will allow businesses to submit online certificates of origin of export and import items for preferential duties and to speed along customs procedures.

They also agreed to work together to increase trade and investment despite difficult external conditions due to the recent complex global crisis.

The two countries said they will further strengthen cooperation in supply chains and to establish a critical mineral supply chain center, recognizing that there is great potential for cooperation between the two countries in relation to the development of rare earth resources found abundantly in Vietnam.

They also agreed to explore ways to cooperate in liquefied natural gas projects, hydrogen energy production, smart cities and climate change response.

Vietnam is Korea's third largest trading partner, reaching a trade volume of some $87.7 billion last year, a 175-fold increase since the two countries established bilateral ties in 1992.

Vietnam has been positioning itself as a manufacturing hub for multinational corporations in the Asean region, with major Korean companies building factories in the country.

In efforts to support Vietnam's sustainable development, the Korean government plans to provide a total of $4 billion in concessional loans to Vietnam by 2030.

Yoon said the Korean government plans to increase the cap for the Economic Development Cooperation Fund from $1.5 billion, between 2016 to 2023, to $2 billion over the next seven years.

Korea will also provide another $2 billion through an economic cooperation promotion facility through a new agreement.

The Korean government also promised to provide grants worth $200 million from 2024 to 2027 in areas such as environment, climate change response, health, education and digital transformation.

Korea plans to support joint research between the two countries worth about $30 million through Korea International Cooperation Agency grants in order to support Vietnam's science and technology innovation over the next 10 years.

Korea and Vietnam further agreed to strengthen efforts to promote people-to-people exchanges, which they called the "foundation of the development of Korea-Vietnam relations."

The Korean government will also expand support for Korean language education in Vietnam and scholarships for students to promote exchanges between future generations.

Korea also plans to continue to support the Korea-Vietnam Institute of Science and Technology, a joint project which "symbolizes future-oriented development cooperation between the two countries, so that it can play a pivotal role in the development of science and technology in Vietnam," according to Yoon.

Yoon stressed that Vietnam is a "key partner" for the development of South Korean and Asean relations and cooperation with the Mekong region.

"North Korea's nuclear missiles are the most pressing security threat in the region," Yoon said. "In order to drive a united response from the international community, Korea and Vietnam will strengthen cooperation at both the Asean and bilateral levels."

Korean President Yoon Suk Yeol, left, and Vietnamese President Vo Van Thuong shake hands at a joint press briefing after their bilateral summit at the presidential palace in Hanoi on Friday. [JOINT PRESS CORPS]

Yoon was scheduled to hold a series of meetings with Vietnamese leadership and take part in a series of business and cultural events during the trip.

This includes having a luncheon with Korean businesses in Vietnam, meeting with entrepreneurs in various fields such as manufacturing, distribution, construction, finance and law.

Yoon said he appreciated the "dedication and hard work of entrepreneurs who have built a trusted image in Vietnam," according to the presidential office, and expressed willingness to actively support their business efforts.

It was attended by executives of a dozen companies that entered the Vietnamese market including Samsung Electronics, LG Display, Hyundai Motor, Hyosung, Hanwha Aerospace, Lotte, CJ, Daewoo E&C and Yulchon law firm.

Earlier Friday morning, Yoon and first lady Kim visited Ho Chi Minh Mausoleum in Hanoi, beginning their official schedule for the day. They laid flowers and paid their respects with a moment of silence amid drizzling rain at the resting place of the late Vietnamese revolution leader.

They were also scheduled to have a state dinner with Vietnamese President Thuong and first lady Phan Thị Thanh Tâm.

Yoon and the presidential entourage arrived in Hanoi on Thursday as a part of a six-day trip which took them to Paris earlier in the week to promote Busan's 2030 World Expo bid.

The president was accompanied by a 205-member business delegation including leaders of Korea's top conglomerates and smaller-sized companies with ties to Vietnam who engaged in a series of business-related events during the state visit.

Yoon is returning a state visit made by then Vietnamese President Nguyen Xuan Phuc to Seoul last December.

Last year, the two countries marked the 30th anniversary since establishing diplomatic relations.

Yoon returns to Seoul Saturday.

Korean President Yoon Suk and first lady Kim Keon-hee pay respects at Ho Chi Minh Mausoleum in Hanoi Friday morning as a part of a three-day state visit. [JOINT PRESS CORPS]

BY SARAH KIM [kim.sarah@joongang.co.kr]