Trade cooperation: strengthening relations, aiming for balance

The 14th session noted the satisfaction of Ministers Nguyen Hong Dien and Ahn Dukgeun with the results achieved from the agreements at the previous session, as well as positive steps forward in trade, industrial and energy cooperation.

In 2024, bilateral trade turnover will reach 81.5 billion USD, up 7.3% compared to 2023, demonstrating stable development despite challenges from protectionism and global trade tensions. The two Ministers affirmed that strengthening cooperation is a key factor to support businesses of the two countries to overcome difficulties.

In the field of trade, the two sides highly appreciated the effectiveness of the Working Groups “Korea Plus in Vietnam” and “Vietnam Plus in Korea” after two years of implementation. These groups have played an important role in researching, proposing cooperation projects and resolving difficulties for businesses. The two Ministers agreed to continue to strengthen coordination through the working groups, aiming for a trade turnover of 150 billion USD by 2030 in a more balanced direction. To achieve this, the two sides committed to effectively implementing the agreed Action Plan, promoting dialogue on distribution and logistics, organizing trade seminars, and exchanging trade promotion delegations to attend major fairs and exhibitions in each country.

In addition, the two sides agreed to create conditions for Korean textile and garment enterprises to expand their investment and production in Vietnam, and to cooperate closely in multilateral frameworks such as ASEAN-Korea, RCEP, APEC and IPEF. These efforts will not only help take advantage of the benefits of free trade agreements but also strengthen the position of the two countries in the global supply chain.

The 8th meeting of the Joint Committee for the Implementation of the VKFTA continued to affirm the role of the agreement in promoting bilateral trade and investment. The two Ministers welcomed the smooth implementation of the VKFTA over the past 10 years, contributing to maintaining stable growth in trade in goods despite global economic instability. Emphasizing the importance of the agreement, the two sides pledged to optimize the benefits of the VKFTA by removing barriers related to customs, origin of goods, trade defense, food safety, animal and plant quarantine and technical barriers. These solutions aim to create a clear legal corridor, supporting businesses to make the most of opportunities from the agreement.

Industry and energy: towards sustainable development

In the industrial sector, the two Ministers agreed to assign technical levels to coordinate the implementation of the Vietnam-Korea Essential Mineral Supply Chain Technology Cooperation Center project, based on the Memorandum of Understanding signed in June 2023. This project is expected to enhance the supply capacity of raw materials and components, especially in strategic industries. The two sides also agreed to promote cooperation through the Vietnam Technology Consulting and Solution Center Phase 2 (VITASK 2), focusing on medium- and long-term raw materials and components.

Regarding human resource training, the two countries pledged to cooperate in developing high-quality human resources, especially in the shipbuilding industry. In addition, the two sides agreed to resolve difficulties in the automobile, tobacco and machinery industries, and enhance investment connectivity. Korea also pledged to support Vietnam in developing the Industrial Development Law, contributing to perfecting the legal framework for key industries.

In the energy sector, the two ministers discussed cooperation in electricity, oil and gas, clean energy and nuclear power. Vietnam welcomes Korean companies to expand their investment in LNG and oil and gas projects, with the principle of ensuring efficiency, harmonization of interests, compliance with the law and equality with other investors. Appreciating the progress of ammonia co-firing technology testing in Korea, Vietnam suggested that the Korean side closely coordinate with domestic partners to research and deploy this technology, towards sustainable energy solutions.

At the end of the meeting, the two Ministers signed three important documents: Minutes of the 14th meeting, Joint Statement of the 8th VKFTA meeting and Action Plan to achieve the target of 150 billion USD in turnover. In addition, the two sides witnessed the signing and exchange of two memorandums of understanding: one on nuclear power cooperation between the Vietnam Electricity Authority and the Korea Nuclear Industry Policy Agency; and one between the National Power Transmission Corporation (EVNNPT) and the Korea Electric Power Corporation (KEPCO). These documents mark a new step forward in bilateral cooperation, especially in the fields of high technology and clean energy.

Vietnam and the Republic of Korea are showing strong determination to elevate their strategic partnership. With specific commitments on trade, industry and energy, the two countries are not only aiming for economic goals but also contributing to building sustainable supply chains, supporting businesses and promoting regional development. The results from the two meetings are testament to effective cooperation, opening up bright prospects for bilateral relations in the coming decade.

Source: https://thoibaonganhang.vn/viet-nam-han-quoc-dua-kim-ngach-thuong-mai-song-phuong-len-150-ty-usd-162756.html