SEOUL: South Korea and Vietnam said on Wednesday they agreed to cooperate closely, after the announcement of US 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 US$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 US President Donald Trump early this month exposed the vulnerability of the 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.
On the multilateral level, the two sides agreed to continue to closely coordinate and support each other in resolving international and regional issues of mutual concern, the Vietnamese ministry's statement said.
Trump's reciprocal tariffs included a 46% duty on imports from Vietnam and a 25% duty on imports from South Korea. They have since been put on a 90-day moratorium until July. - Reuters
