I. Legal Basis

• Viet Nam–Korea Free Trade Agreement (VKFTA)

Trade relations between Viet Nam and the Republic of Korea have been strongly promoted through the Viet Nam–Korea Free Trade Agreement (VKFTA), together with other bilateral and multilateral cooperation frameworks. Since the two countries elevated their relationship to a Comprehensive Strategic Partnership in 2022, economic cooperation has continuously expanded, political trust has been strengthened, and areas of cooperation have become increasingly diversified.

Entering 2025, Viet Nam–Korea cooperation has become more profound and substantive, particularly in future-oriented sectors such as the digital economy, high technology, clean energy, smart logistics, and innovation. The two sides are also coordinating the implementation of an Action Plan toward achieving a bilateral trade target of USD 150 billion by 2030, while Viet Nam has proposed that Korea further facilitate market access for Vietnamese agricultural and food products.

II. Trends and Strategic Orientation

In bilateral trade cooperation, the export structures of Viet Nam and Korea are highly complementary and involve limited direct competition. Accordingly, Viet Nam primarily exports products manufactured by Korean foreign-invested enterprises (FDI), such as mobile phones and components, computers, electronic products and components, machinery and equipment parts, as well as products in which Viet Nam has comparative advantages, including agricultural and aquatic products, processed foods, textiles, garments, footwear, and wooden furniture.

According to Prof. Dr. Nguyen Vu Tung, former Ambassador of Viet Nam to Korea, Viet Nam–Korea relations are currently converging under favorable conditions for continued development, including aligned interests, institutional compatibility, political trust, mutual goodwill, and shared identity.

At present, Viet Nam is actively attracting Korean enterprises to invest in high-potential sectors, particularly energy, including gas-fired power generation, LNG terminals and storage facilities, and nuclear energy—specifically Small Modular Reactors (SMRs). According to Mr. Hong Sun, Honorary Chairman of the Korea Chamber of Commerce in Viet Nam (KoCham), Viet Nam’s energy market is widely recognized as an attractive investment destination for Korean investors due to its strong growth potential.

Viet Nam also seeks to encourage Korea to motivate major conglomerates such as Samsung, LG, SK, and Hyosung to further expand their investments in priority sectors, including infrastructure, semiconductors, artificial intelligence (AI), renewable energy, and smart cities. Many Korean enterprises consider Viet Nam a key market due to strong demand for construction machinery, industrial equipment, and high-technology products.

In addition, the two sides have agreed to expand cooperation in high-quality human resource development, an issue discussed by General Secretary To Lam and the President of the Republic of Korea during a recent high-level visit. Viet Nam will review existing training programs with Korea and promote a tripartite cooperation model among the Government, educational institutions, and enterprises, particularly in emerging technologies, AI, and digital transformation.

III. Economic Impact and Opportunities

Bilateral cooperation between the two countries has moved beyond the stage of “parallel benefits” and has entered a phase of intertwined and complementary interests, such as Korea’s capital meeting Viet Nam’s capital demand, Viet Nam’s labor force meeting Korea’s labor needs, Korea’s need for markets aligning with Viet Nam’s market potential, alongside growing scientific and technological exchanges.

In 2024, bilateral trade turnover reached USD 81.5 billion, representing a 7.3% increase compared to 2023. In the first seven months of 2025, bilateral trade amounted to USD 49.9 billion, continuing to grow by over 7.5% year-on-year. Numerous bilateral and multilateral free trade agreements—particularly the VKFTA—are providing clear competitive advantages to enterprises of both countries.

The period from 2025 to 2030 is expected to open up significant opportunities for Korean enterprises in digital technology, new energy, electronics, and industrial manufacturing sectors. Notably, at the Viet Nam–Korea Economic Forum, held in the framework of the State visit to Korea by General Secretary To Lam on 12 August 2025, Viet Nam and Korea signed multiple Memoranda of Understanding (MoUs) between ministries, local authorities, and enterprises of both countries.

Among these, the People’s Committee of Khanh Hoa Province and SK Innovation—a subsidiary of the SK Group—agreed to cooperate on the development of a Specialized Energy Industrial Complex (SEIC), which is expected to generate significant economic benefits for the South Central region of Viet Nam. In addition, HD Hyundai Group expressed its intention to expand its manufacturing facilities in Nam Van Phong, serving the Group’s shipbuilding production chain.

IV. Conclusion

Overall, bilateral trade and investment relations between Viet Nam and the Republic of Korea in 2025 are entering a phase of deepened, stable, and long-term strategic development, underpinned by the solid legal foundation of the VKFTA and the Comprehensive Strategic Partnership framework. The highly complementary trade structure, together with the close integration between Korean FDI inflows and Viet Nam’s production and export capacity, continues to serve as a core driver of bilateral trade growth and investment expansion.

In the context of increasing regional and global economic uncertainties, Viet Nam has emerged as a stable investment destination with strong long-term growth potential, particularly in high technology, new energy, infrastructure, and innovation. The continued presence and expansion of major Korean conglomerates in Viet Nam not only reflects investor confidence but also signals a broader shift in global value chains toward sustainability, technology transfer, and human capital development.

Looking ahead to the 2025–2030 period, Viet Nam–Korea cooperation is expected to transition from a model based primarily on cost efficiency and labor advantages to one driven by technology, knowledge, and higher value-added activities. If both sides continue to effectively leverage the VKFTA, remove market access barriers, and strengthen cooperation in human resource development, innovation, and digital transformation, the bilateral trade target of USD 150 billion by 2030 is achievable, thereby laying a solid foundation for a complementary, sustainable, and mutually beneficial economic partnership in the long term.

V. About NYLA – Korean Legal Office

■ NYLA – Your Trusted Legal Partner in Korea

At NYLA, we understand that the success of foreign businesses in Korea requires not only a solid business strategy but also reliable legal support. With a team of experienced Korean attorneys and legal professionals, NYLA provides tailored legal services for companies, investors, and individuals operating or planning to establish a presence in Korea.

We support our clients throughout the entire business journey with comprehensive services, including:

• Legal consultation on company establishment, taxation, and immigration;
• Advice on commercial real estate, franchising, and product distribution;
• Support in human resources, marketing, and business strategy.

In addition to legal advisory, NYLA also represents clients in civil litigation cases related to business, labor, marriage, family, and inheritance to ensure their rights and interests are fully protected.

■ Contact NYLA

If you’re a foreign business or individual looking for a reliable legal partner in Korea, NYLA is here to help. We are committed to delivering effective, practical, and personalized legal solutions for every client.

With a proven track record of assisting hundreds of international clients, our team is equipped to help you navigate complex legal challenges—whether it’s commercial disputes, contract issues, or foreign investment guidance.

Don’t let legal matters hold you back. Let NYLA be your trusted guide in the Korean market.

■ Get in touch with NYLA for expert legal support

Website: https://nylakoreanlegal.com/ FB: https://www.facebook.com/nyla.koreanlegal  Tiktok: https://www.tiktok.com/@nylakoreanlegal  Youtube: https://www.youtube.com/@NYLA-xd8qx Email:  info.NYLAkoreanlegal@gmail.com   SĐT: +82 10-3415-7859