S. Korea, Vietnam target $150b in bilateral trade by 2030, deepen energy and mineral ties

South Korea and Vietnam agreed Wednesday to expand cooperation in critical minerals and energy — including breaking ground on a critical minerals supply chain technology center and supporting the construction of an oil storage facility — as the two countries work toward a bilateral trade target of $150 billion by 2030.

The Ministry of Trade, Industry and Energy said the agreements came out of the 15th Korea-Vietnam Industrial Joint Committee and 9th Korea-Vietnam FTA Joint Committee, held Wednesday at Lotte Hotel in Jung-gu, Seoul, with Minister Kim Jung-kwan and Vietnamese Minister of Industry and Trade Le Manh Hung in attendance.

The meeting was convened to translate into concrete outcomes the results of two summits held since the current administration took office.

At the industrial joint committee, the two sides discussed specific measures to achieve the $150 billion trade target by 2030.

Under the trade subcommittee, the two countries agreed to work closely toward the simultaneous conclusion of quarantine negotiations covering items each side hopes to export — Korean satsuma mandarins and kiwis, and Vietnamese lychees and passion fruit.

Under the industrial technology subcommittee, Vietnam agreed to help Korean manufacturers operating locally secure workers, while South Korea agreed to support the transfer of technology from large domestic companies to local partners through a "technology-sharing model."

In the critical minerals sector, the two sides agreed to advance administrative procedures without delay to begin construction of the Critical Minerals Supply Chain Technology Center as soon as possible.

The center, to be developed as part of the Ministry of Trade, Industry and Energy's Official Development Assistance program, will house research facilities, ore-dressing and smelting laboratories, an analysis room and related equipment.

Vietnam said it would work with relevant agencies to resolve investment obstacles facing Korean companies operating locally, including securing permits for rare earth metal manufacturing facilities.

Under the energy and resources subcommittee, the two countries agreed to pursue joint crude oil stockpiling and the establishment of an emergency response mechanism.

Korea National Oil Corp. and Vietnam's PetroVietnam Oil Storage Company signed a memorandum of understanding on cooperation for building an oil storage facility in Vietnam.

Korea National Oil Corp. plans to provide technical consulting and operations and maintenance support across the design, construction and operation of Vietnam's first below-ground petroleum storage facility.

The two sides also agreed to continue policy cooperation on LNG power generation projects, electricity grid infrastructure and nuclear and renewable energy in Vietnam.

At the FTA joint committee that followed, regulations requiring duplicative testing for lithium-ion batteries were revised at South Korea's request.

The two sides also agreed to expedite Vietnam's internal procedures for revising product-specific rules of origin, updating the classification from HS 2017 to HS 2022.

Export quarantine cooperation on South Korean items of interest, including heat-treated chicken and pork, was also placed on the agenda.

"Since the Korea-Vietnam FTA took effect, bilateral trade has grown at an average of about 10 percent per year and looks set to exceed $100 billion for the first time by the end of this year," Kim said. "We will go beyond simple investment to further strengthen cooperation in building advanced industry ecosystems, developing industrial technology talent, and securing critical mineral supply chains and energy security."