Vietnam and South Korea to meet next week amid trade tensions

Vietnam and South Korea are set to hold high-level talks next week to address escalating trade tensions and reinforce their economic partnership. The meeting aims to mitigate the impact of recent U.S. tariffs and to strategize on achieving a bilateral trade target of $150 billion by 2030.

The bilateral trade between the two nations has been on an upward trajectory, reaching approximately $81.5 billion in 2024, marking a 7.3% increase from the previous year. This growth underscores the resilience and depth of their economic ties.

However, the trade landscape has been challenged by the U.S. administration’s recent imposition of reciprocal tariffs—25% on South Korean products and 46% on Vietnamese goods. These tariffs, set to take effect in July, have raised concerns among businesses and policymakers in both countries. South Korean companies, notably Samsung Electronics, which manufactures over 60% of its global smartphones in Vietnam, are particularly affected.

In response to these challenges, Vietnam’s Foreign Minister Bui Thanh Son and South Korea’s Foreign Minister Cho Tae-yul have agreed to maintain close communication to address the ripple effects of the U.S. tariffs. They emphasized the importance of their economic interdependence and the need for collaborative efforts to navigate the evolving trade environment.

The upcoming talks are expected to focus on several key areas:

Trade Diversification: Exploring new markets and sectors to reduce dependency on traditional export destinations.

Supply Chain Resilience: Strengthening supply chains to withstand external shocks and ensuring the stability of critical industries.

Investment Promotion: Encouraging mutual investments in high-tech industries, including digital transformation, green economy, and biotechnology.

Both nations are committed to leveraging their comprehensive strategic partnership to foster a more balanced and sustainable trade relationship. The forthcoming discussions are anticipated to yield actionable strategies to mitigate the adverse effects of external trade pressures and to fortify the economic bonds between Vietnam and South Korea.