HANOI/SEOUL: Vietnam's leader To Lam will host South Korean President Lee Jae Myung on Wednesday, marking their second meeting in less than a year, as Hanoi seeks more support for its high-tech ambitions from its top investor.
Vietnam, a major exporter of phones and other electronic goods, is keen to pivot to more sophisticated technologies such as semiconductors.
South Korea is the largest investor in Southeast Asia's fastest growing economy in terms of accumulated capital, and the Samsung group, which includes chip giant Samsung Electronics, is the biggest foreign corporate investor with more than $20 billion mostly in electronic goods plants.
For its part, Seoul is expected to pitch roles for Korean firms in Vietnamese state-led projects such as nuclear power, the Dong Nam new city development and the Gia Binh airport, local media said. It also sees the visit as a chance to expand access for Korean cultural and agricultural products.
Additionally, the leaders are expected to discuss developing relations in areas such as global supply chains and critical minerals.
Lee, who last met with Lam in August, is travelling to Hanoi with a large business delegation after visiting India and is scheduled to have two days of meetings.
At least a dozen government cooperation agreements are planned and a goal to boost bilateral trade flows to $150 billion by 2030 is likely to be reaffirmed.
Trade rose 9.6% last year to $89.5 billion, according to the Vietnamese government.
Ahead of the visit, Vietnam's Ambassador to South Korea, Vu Ho, was quoted as saying by local media that bilateral cooperation should focus on high-tech industries, such as semiconductors and artificial intelligence.
Samsung has been in talks with Vietnamese authorities for years about a possible back-end semiconductor factory, multiple sources familiar with the discussions have said.
Intel, Amkor and other multinationals have large back-end chip plants in Vietnam, focusing on labour-intensive assembling, testing and packaging of semiconductors.
But attempts by Hanoi to attract foreign investment in more advanced plants for chip production, known as fabs, have so far not yielded results.
Kwak Sungil, an executive director at the Korea Institute for International Economic Policy, said South Korean firms active in Vietnam's electronics sector could expand joint training programmes and help build the talent base needed for Hanoi's industrial ambitions.
That would also ease labour shortages facing South Korean manufacturers, he added.
Deeper cooperation with South Korea would also help localise parts production, train skilled workers and reduce vulnerability to outside pressure, Kwak said.
Hanoi has been under much pressure from the U.S. to reduce its dependence on Chinese electronic parts, with Washington in recent months stepping up scrutiny of whether Chinese goods are being routed through Vietnam to avoid U.S. tariffs. - Reuters
