South Korea Vietnam Target $150B Trade Amid Trump Tariffs

South Korea and Vietnam are intensifying economic cooperation amid shifting global trade dynamics, particularly in response to U.S. tariffs under President Donald Trump’s administration. The two countries have set a target of boosting bilateral trade to $150 billion annually by 2030, a significant increase from the current level. This goal was announced during a historic state visit by Vietnamese President to Seoul, marking the first time in over a decade and also the first foreign leader hosted by South Korean President Lee Jae Myung since he took office in mid-2025.

Vietnam has already become South Korea’s third-largest trading partner, while South Korea ranks as Vietnam’s second-largest source of imports and third-largest export market. South Korean firms have heavily invested in Vietnam, particularly in electronics manufacturing, making them a major presence in the country’s industrial landscape. South Korea is currently the largest foreign investor in Vietnam, with thousands of registered projects contributing to mutual economic growth.

The Trump-era tariffs—15 percent on South Korean goods and 20 percent on Vietnamese exports—have accelerated the push for deeper economic integration between the two nations. By strengthening their regional trade relationship, both countries aim to reduce reliance on the U.S. market and build resilience against external trade shocks. The partnership also serves a geopolitical purpose, aligning with broader efforts to stabilize supply chains and diversify trade routes in the Indo-Pacific region.

Collaboration spans key industries, including energy, transportation, and semiconductors. South Korea is supporting Vietnam in its development of the first nuclear reactors, while South Korean firms are exploring opportunities in Vietnam’s ambitious North-South high-speed railway project. The semiconductor sector is another focal point, with Korean technology companies integrating operations into Vietnam’s expanding production base. Analysts expect Vietnam’s semiconductor market to grow at a double-digit rate in the coming years, further enhancing the strategic value of this collaboration.

Trade agreements have played a foundational role in the partnership. The Korea-Vietnam Free Trade Agreement has provided greater flexibility, complementing the ASEAN-Korea FTA and fostering deeper economic integration. Since the agreement's implementation, bilateral trade has more than doubled, demonstrating the effectiveness of such frameworks. The $150 billion target builds on this momentum, reflecting both nations’ commitment to deepening economic ties and strengthening their positions in the regional supply chain.

Beyond economic cooperation, cultural and people-to-people ties are also deepening. Millions of tourists travel between the two countries annually, and large Korean-Vietnamese families maintain strong personal connections that transcend trade statistics. The governments are now expanding collaboration into new areas, including renewable energy, advanced technology, and supply chains for critical minerals. Vietnam’s rich reserves of rare earth elements align with South Korea’s demand for materials like graphite, tungsten, and bauxite, making the two nations natural strategic partners.

The evolving partnership now extends beyond trade to include security cooperation, cultural exchanges, and joint efforts on global issues. As global trade rules continue to shift under new geopolitical realities, the South Korea-Vietnam relationship is seen as a practical approach to maintaining economic stability and reducing vulnerability to external disruptions. The strategic move reflects a broader trend among Indo-Pacific nations seeking to diversify trade relationships and strengthen regional integration in response to global uncertainties.

Source: [1] South Korea and Vietnam eye $150B trade despite Trump ... (https://coinfomania.com/south-korea-and-vietnam-eye-150b-trade-despite-trump-tariff/)