[Yonhap News Photo]
Viet Nam is South Korea's third-largest trading partner after China and the United States. There are some 8,800 South Korean companies running businesses in the Southeast Asian nation. Viet Nam had an estimated $34.5 billion trade deficit with South Korea in 2022.
Yoon met Thuong at the Presidential Palace of Viet Nam in Hanoi on June 23 during his three-day visit to Viet Nam. The two leaders attended the 95-minute-long summit meeting attended by only a few key officials. Through a joint statement, Yoon said the limit for the economic development cooperation fund (EDCF) would be increased to $2 billion from the current $1.5 billion for the next seven years. The EDCF, run by South Korea's state-owned bank, was created to support developing nations' economies and industries. The South Korean president also signed an agreement to provide an additional $2 billion for the economic cooperation promotion.
The two leaders aim to achieve $150 billion in trade amount by 2030. Electronic Origin Data Exchange System (EODES) would be adopted, which enables businesses to electronically submit evidence of the origin of their exported and imported goods. The system can increase efficiency the of customs clearance procedures.
South Korea would provide $200 million worth of non-refundable aid to Viet Nam's other industries including environment, health, education, and digital transformation between 2024 and 2027.
Yoon stated that Viet Nam is a key partner in carrying out South Korea's Indo-Pacific strategy and building a solid connection with the Association of Southeast Asian Nations (ASEAN). "North Korea's nuclear and missile programs are the most critical security threat in our region," Yoon said in a joint statement. He added his nation will upgrade cooperation with Viet Nam and at the ASEAN level against the security threat.
Seoul will also work with Hanoi to build infrastructure for a core mineral supply chain center. According to Yoon, there is a great potential for cooperation in the development of rare earth elements produced in Viet Nam. Rare earth elements could be helpful in various sectors such as renewable energy, home appliances, and automotive parts to produce high-tech devices.
The two countries will seek coordination in many other areas including liquefied natural gas (LNG)-based power generation, hydrogen production, smart cities, and climate change response.
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