South Korean and Vietnamese firms signed 73 agreements spanning technology, energy, and infrastructure on Thursday during President Lee Jae Myung’s visit to Hanoi.
Most of the deals were non-binding and did not disclose financial details. They followed 12 cooperation agreements signed a day earlier at a meeting between Lee and Vietnam’s top leader, To Lam, including discussions on potential Korean investment in a new nuclear power plant in southern Vietnam.
South Korea is the largest investor in Vietnam with factories accounting for more than 30% of the country’s exports, although its investment pledges fell about 25% last year from 2024, according to Vietnam’s government data, amid trade uncertainty and concerns over Vietnamese regulations.
Officials of more than 100 Korean companies with operations in Vietnam including longtime investor Samsung Electronics accompanied Lee, following a visit to India, officials and media said.
LNG, Data Centres, Unmanned Vehicles
The document lists an investment licence for a liquefied natural gas power plant to be co-developed by SK Innovation with local partners, and non-binding memoranda of understanding for the development of data centres in Vietnam by SK Innovation, SK Telecom and Daewoo E&C.
It also includes an investment certificate to expand an existing facility in Vietnam run by Seojin System Co, a communication equipment maker.
The Korea Chip Design Industry Association agreed to work with Vietnamese tech firm FPT to promote the development of next-generation semiconductor technology, according to the list.
Defence company Hanwha System signed a memorandum of understanding with Vietnamese firm Saigontel to cooperate on unmanned submarine and surface vehicles, and Kepco E&C agreed to work on a wind power project in Vietnam.
In a regulatory filing earlier on Thursday, Hyundai Rotem said it won orders worth about $332 million for a three-phase rail project in Ho Chi Minh City. The agreement is mentioned on the list without an investment value.
Corporate Push
The officials with Lee include those representing Samsung Electronics, SK LG, Lotte, POSCO Holdings and HD Hyundai, they added.
Samsung has the largest presence in the Southeast Asian nation after decades of investment running into more than $20 billion.
It has recently made progress in years-long talks with Vietnamese authorities for a possible back-end semiconductor factory, sources familiar with the discussions have said. However, no agreement was announced on Thursday.
On Wednesday, Vietnam’s central bank said it had issued a licence to Industrial Bank of Korea to open a wholly owned unit in Vietnam.
Lee asked Prime Minister Le Minh Hung on Thursday to help tackle issues facing Korean businesses in Vietnam and pave the way for their participation in strategic infrastructure projects, state media said.
Korean businesses raise issues such as access to investment incentives, tax refunds and rising wages in Vietnam, pushed up recently by a large influx of Chinese manufacturers.
(With inputs from Reuters)
