South Korea, Vietnam pledge cooperation as US tariffs loom

16/4/2025 13:39

South Korea and Vietnam said on Wednesday they agreed to cooperate closely, after the announcement of U.S. tariffs that pose a major challenge for both economies and for companies like Samsung Electronics with big investments in Vietnam.



Vietnam's foreign ministry said the two countries are seeking to raise bilateral trade to $150 billion by 2030, in a "more balanced and sustainable manner".

South Korean companies, led by national champions such as Samsung Electronics, have been building their presence in Vietnam for years as the costs of manufacturing in China rose along with political risks and competition. Samsung produces more than 60% of its phones sold globally in Vietnam.



That reliance on Vietnam now threatens to backfire as the steep "reciprocal" tariffs announced by U.S. President Donald Trump early this month exposed the vulnerability of the Southeast Asian country's export model.



South Korean Foreign Minister Cho Tae-yul met his Vietnamese counterpart Bui Thanh Son on Tuesday. Earlier this week, South Korea's industry and trade minister also visited Vietnam to discuss the response to the looming tariffs.



Vietnam said it is encouraging South Korean businesses to expand operations in Vietnam, with a priority in infrastructure, electronics, semiconductors and renewable energy.