High rate of businesses benefiting from FTAs

According to the Foreign Market Development Department under the Ministry of Industry and Trade, economy, trade and investment remain among the main pillars of Vietnam–RoK cooperation. The RoK is currently Vietnam’s largest investor and third-largest trading partner, while considering Vietnam its top priority partner in development cooperation.

In recent years, bilateral trade has greatly benefited from both bilateral and multilateral Free Trade Agreements (FTAs) such as the ASEAN–Korea FTA (AKFTA), the Regional Comprehensive Economic Partnership (RCEP), and especially the Vietnam-Korea FTA (VKFTA).

In 2024, bilateral trade turnover reached US$ 81.5 billion, up 7.3% from 2023; Vietnam’s exports to the RoK stood at US$25.6 billion (up 9.1%), imports from the RoK at US$55.9 billion (up 6.5%), resulting in a trade deficit of US$ 30.3 billion. In the first half of 2025, bilateral trade reached US$42.1 billion (up 7.5%); exports totalled US$ 13.7 billion (up 12%), imports US$28.4 billion (up 5.5%), for a trade deficit of US$14.6 billion.

According to the Ministry’s Agency of Foreign Trade, the RoK has for many years ranked among the top markets in terms of the rate of Vietnamese exports benefiting from FTAs. In 2023, exports to the RoK using preferential Certificates of Origin (C/O) amounted to US$12.2 billion, accounting for 52.1% of total exports to this market. This result demonstrates that Vietnamese enterprises are well aware of using preferential C/Os as an effective tool to take advantage of tariff preferences, particularly under the RCEP, thanks to a solid grasp of rules of origin.

Industrial cooperation seen as a bright spot

In the industrial field, the two sides regularly hold meetings and sessions to intensify exchanges and investment promotion. At the 14th meeting of the Vietnam–RoK Joint Committee on Trade, Industry and Energy Cooperation and the 8th meeting of the Joint Committee on VKFTA Implementation in April 2025, Minister of Industry and Trade Nguyen Hong Dien and Minister of Trade, Industry and Energy Ahn Duk-geun agreed on multiple measures to further boost cooperation.

They consented to assign technical levels on both sides to coordinate closely in effectively implementing the Vietnam–RoK Essential Minerals Supply Chain Technology Cooperation Center (MoU signed in June 2023); bolster cooperation in medium- and long-term materials and components through Phase 2 of the Vietnam Technology Advice and Solutions Center (VITASK 2); cooperate in human resources training, particularly in shipbuilding; and connect job opportunities given the RoK’s current shortage of workers in this sector.

The two sides will also enhance investment linkages and resolve bottlenecks in the automobile, tobacco, and machinery industries; and the RoK will continue to support Vietnam in drafting the Law on Industrial Development.

Minister Nguyen Hong Dien stressed that Vietnam and the RoK have become each other’s leading partners in many areas, with economic, trade and investment cooperation serving both as a pillar and a main driver of bilateral relations.

Industrial cooperation is also advanced through investment by RoK enterprises in Vietnam. While in the past such projects were mainly small and medium-sized, there are now many large-scale projects by leading RoK conglomerates. As of May 2025, the RoK was Vietnam’s largest investor with 10,203 projects and total registered capital of US$ 94 billion, accounting for 23.5% of projects and 18.1% of total registered FDI.

Recently, the Thai Nguyen Department of Industry and Trade organised a conference between enterprises from Gyeongsangbuk-do province (RoK) and those from northern Thai Nguyen province. The Department expressed confidence that, with strengths in technology, design, and product quality, Gyeongsangbuk-do businesses would open effective, long-term cooperation opportunities in Thai Nguyen, with the potential to expand to neighbouring provinces and the broader Vietnamese market via modern, professional distribution channels.

Strengthening energy cooperation

In bilateral ties, the RoK attaches special importance to cooperation and investment in the energy sector, participating in almost all areas from oil and gas exploration and development of the power sector to clean energy and nuclear power. Minister Ahn Duk-geun proposed that the Vietnamese Government create favourable conditions for RoK enterprises to invest in Vietnam’s LNG power projects, as well as to step up bilateral cooperation on clean energy and nuclear power.

Welcoming the RoK’s proposals, Minister Nguyen Hong Dien said Vietnam is open to expanded investment by RoK companies in LNG projects on the principles of ensuring investment efficiency, balancing benefits, complying with the law, and ensuring equality with other investors. He also hailed the RoK’s progress in testing ammonia co-firing technology, and proposed close coordination with Vietnamese partners to research and apply this technology in Vietnam.

Party chief’s visit expected to usher in new chapter for Vietnam–RoK trade relations

Party General Secretary To Lam’s state visit to the Republic of Korea (RoK) from August 10 - 13 is expected to mark a new milestone in the bilateral relationship, creating fresh momentum for trade and investment cooperation between the two countries.

Vietnam desires to promote strategic FDI projects with RoK

VOV.VN - Deputy Prime Minister Nguyen Chi Dung chaired a meeting in Hanoi on July 31 with leaders of various ministries and localities to review and accelerate foreign direct investment (FDI) projects by enterprises of the Republic of Korea in strategic sectors in Vietnam, such as semiconductors and energy.