S.Korea and Vietnam agree on expanded Trade, Defense, and Strategic Partnership

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus. I'm Kim Mok-yeon.

The Vietnamese head of state is in Korea this week on a visit carrying significant diplomatic and economic weight.

Meeting with President Lee Jae Myung on August 11th, the two leaders agreed to deepen their Comprehensive Strategic Partnership, expanding cooperation in defense, economy, science, culture, and infrastructure.

Businesses from both countries also gathered in Seoul to explore new opportunities, as the two sides set a goal to nearly double trade volume to 150 billion U.S. dollars by 2030.

With more than 10,000 Korean companies already active in Vietnam, the outcomes of this visit could shape the next phase of economic growth and regional strategy, with even more developments to watch for in the months ahead.

For a deeper discussion on this, we connect to Joon Woo Lee, representative director at Yoon & Yang Law Vietnam LLC. Welcome.

Also joining us is Lee Jae-hyon, senior fellow at Asan Institute for Policy Studies. Good to see you.

1. (Jae-hyon) Let's begin with Dr.Lee, on the 11th, Korea and Vietnam adopted a Joint Statement on deepening the Comprehensive Strategic Partnership, covering strengthened cooperation in defense, economy, science, and culture. How would you assess the overall outcome of this summit?

2. (Joon Woo) Now let's bring in Director Lee to the conversation, so you are currently based in Vietnam. What is the local sentiment regarding this summit? And how do people in Vietnam view the results achieved?

3. (Joon Woo) Looking specifically at trade, the two nations agreed to expand bilateral trade from the current level of about 86.7 billion U.S. dollars to 150 billion dollars by 2030. Director, How do you think the economic cooperation plans announced at the summit will translate into real opportunities for Korean companies? What benefits can be expected?

4. (Jae-hyon) Now to the bigger picture of global trade, amid the restructuring of trade systems, Dr.Lee what is the diplomatic significance and importance of the decision to roughly double Korea–Vietnam trade within the next five years? Could this be seen as part of a broader move to strengthen economic ties with ASEAN?

5. (Joon Woo) Turning to Korean companies already in Vietnam, more than 10,000 are currently operating there, and the two countries agreed to work closely to ensure their stable business activities. From a national policy perspective Director Lee, what measures do you think are necessary to guarantee these companies' operations?

6. (Jae-hyon) On the resources front, the summit also led to an agreement to expand supply chain cooperation on critical minerals such as rare earths. In an era where resource protectionism has weaponized rare earths, what diplomatic benefits could cooperation with Vietnam bring Dr.Lee?

7. (Jae-hyon) In terms of security and defense, another achievement of this summit is the expansion of the stage for Korean defense exports. The two nations agreed to restart the Korea–Vietnam Defense and Military Cooperation Committee, which had been suspended since 2008, and to strengthen defense cooperation. Dr.Lee, In the complex geopolitical environment of the South China Sea, what is the strategic significance of this move?

8. (Joon Woo) On infrastructure and development, Korea and Vietnam also agreed to cooperate in areas such as nuclear power, high-speed railways, and new city development, opening new opportunities for Korean companies in Vietnam. Director.Lee, What major localization challenges do Korean companies face when investing or entering the Vietnamese market?

9. (Jae-hyon) Finally, looking ahead, this summit is seen as a starting signal for expanding and deepening Korea's diplomacy in Southeast Asia. For the Lee Jae-myung administration's successful pragmatic diplomacy, how should Korea's Southeast Asia policy move forward Dr.Lee?