South Korea and Vietnam agreed to expand economic cooperation on Monday in a bid to counter looming U.S. tariffs that could significantly impact both nations. South Korean Industry Minister Ahn Duk-geun, during a visit to Hanoi, met with Vietnam’s Trade Minister Nguyen Hong Dien to discuss joint strategies to mitigate potential U.S. import tariffs of 25% on South Korea and 46% on Vietnam, expected in July after a global moratorium expires.
Vietnam is South Korea’s third-largest export destination, and Korean firms are the largest foreign investors in the country. Key companies such as Samsung Electronics, LG Electronics, Hyundai Motor, and HS Hyosung have established significant operations in Vietnam, with Samsung producing over 60% of its global smartphones there. These firms are increasingly exposed to U.S. trade policy shifts as they rely on Vietnam to offset rising manufacturing costs and political risks in China.
The ministers agreed on an action plan to meet their bilateral trade target of $150 billion by 2030. The plan includes cooperation in nuclear energy, LNG power generation, and expanded investment in textiles and apparel. Ahn also assured that Seoul will continue negotiations with both Washington and Hanoi to minimize tariff impacts on Korean businesses.
Meanwhile, Chinese President Xi Jinping also emphasized stronger trade and supply chain collaboration with Vietnam during his visit to Hanoi, signaling intensified regional competition for economic alignment amid U.S. tariff disruptions. As both Seoul and Hanoi deepen ties, their economic strategies are increasingly shaped by shifting global trade dynamics and the need to build more resilient supply chains.
This renewed commitment underscores the urgency for both countries to safeguard their trade-dependent economies from external shocks while enhancing long-term strategic partnerships.