Leaders from Vietnam and South Korea agreed to enhance collaboration in nuclear energy and high technology during a meeting in Hanoi on Wednesday (Apr 22), as both nations aim to reinforce supply chains amid international trade disruptions.
In their second gathering since August, Vietnam's leader To Lam and South Korean President Lee Jae Myung were present at the signing in Hanoi of 12 non-binding agreements related to energy, technology, and security collaboration. The partners consented to explore the potential for collaboration on the development and funding of a nuclear power plant.
Vietnam is looking for a collaborator to construct a nuclear power facility with a projected capacity of 2 to 3.2 gigawatts by 2035, following Japan's exit from the project due to concerns over the schedule being too tight.
Southeast Asia's rapidly expanding economy has occasionally faced challenges in satisfying increasing power demands due to its expanding industrial sector. Vietnam's largest investor is South Korea, where several Korean multinationals operate extensive manufacturing facilities.
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After the meeting, Lam stated that both parties agreed to "assist Vietnamese companies in participating in South Korea's production, supply, and distribution networks, aiding in the growth of an autonomous and self-sufficient economy."
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"We consented to collaborate more intimately to enhance energy security and stabilize supply chains," stated Lee, who arrived in Vietnam with a sizable business delegation after visiting India.
Vietnam, which primarily exports to the United States, has faced pressure from Washington to lessen its reliance on Chinese electronic components, as the White House has recently intensified its examination of whether Chinese products are being funneled through Vietnam to circumvent US tariffs.
The leaders also reiterated a target to elevate bilateral trade volumes to $150 billion by 2030, up from $89.5 billion in the previous year, as reported by the Vietnamese government.
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Samsung, the largest foreign corporate investor in Vietnam with over $20 billion primarily in electronics manufacturing facilities, has engaged in discussions with Vietnamese officials for several years regarding a potential back-end semiconductor plant, with these negotiations advancing recently.