Hanoi (VNA) – Vietnam and the Republic of Korea (RoK) are poised to enter a breakthrough phase in economic cooperation, with the two sides aligning development strategies and shifting from traditional production-based ties towards strategic partnerships in high technology, innovation and joint value creation.
With the RoK’s accumulated investment in Vietnam nearing 100 billion USD and bilateral trade reaching around 90 billion USD, economic relations between the two countries are entering a deeper and more substantive stage.
Vietnam is prioritising emerging sectors such as semiconductors, artificial intelligence (AI), clean energy and green transition, which offer significant potential for expanding cooperation with Korean partners.
Beyond attracting investment, it is seeking to transform itself from a manufacturing destination into a regional hub for innovation and technology development by promoting institutional reforms, improving the investment and business environment, developing digital infrastructure and high-quality human resources, and advancing strategic technology sectors.
With globally recognised strengths in technology, research and development (R&D) and innovation ecosystem, the RoK is viewed as an important partner for Vietnam in capitalising on these opportunities.
As Korean technology firms step up investment in Southeast Asia to diversify supply chains and leverage cost advantages, Vietnam, with its strategic location and abundant workforce, remains a key destination. Major groups of the RoK such as Samsung Electronics, SK Group, POSCO and Hanwha Group are expanding their presence in Vietnam beyond manufacturing into high technology, energy and strategic infrastructure.
Businesses under the LG Group are also accelerating production expansion in Vietnam, accompanied by large-scale recruitment plans to meet rising global orders, particularly in high-tech sectors.
Kwon Sung Taek, Vice Chairman of the Korea–Vietnam Economic and Cultural Association (KOVECA), said the two countries’ economic ties could see a shift in the next 30 years.
He noted that while economic relations over the past three decades had developed “vertically”, led by major corporations such as Samsung, LG, Hyosung and Hyundai Motor, the next three decades could see stronger “horizontal” cooperation, with greater participation by small- and medium-sized enterprises (SMEs) from both countries, thus laying the foundation for healthier and higher-quality growth in economic relations.
Such cooperation could go beyond component supply chains to encompass technology transfer, joint ventures and digital transformation, he said, noting that Korean SMEs with skilled capabilities could help localise and upgrade supply chains through partnerships with Vietnamese companies, strengthening the latter’s autonomy while enabling Korean firms to stabilise their global production bases.
Kwon said closer cooperation could also help promising businesses develop into “global unicorns” through joint R&D, combining the RoK’s planning capabilities with Vietnam’s infrastructure and human resources to facilitate technology transfer.
Korean SME brands, particularly in cosmetics and food, could also gain greater direct access to Vietnamese consumers through the Southeast Asian country’s rapidly growing e-commerce market, he added.
He likened major corporations that have paved the way to “main arteries”, while SMEs serve as “capillaries” that connect and spread value throughout the economy. In particular, the participation of Korean information technology companies in the digital transformation of Vietnamese SMEs is considered an effective cooperation model.
According to Kwon, stronger SME ties could become the main pillar in shifting Vietnam–RoK relations from quantitative growth towards qualitative development.
The two countries thus have substantial opportunities to move from production-based cooperation towards technology and innovation partnerships, with technology, innovation and strategic trust emerging as new drivers of substantive and effective development of their Comprehensive Strategic Partnership./.
