South Korea and Vietnam eye $150B trade despite Trump tariff

The new Korea-Vietnam deal has the goal of raising yearly trade to $150 billion by 2030 would be a big increase from the current amount. It was agreed during the first state visit by a Vietnamese leader to Seoul in over a decade. It is the first foreign leader hosted by President Lee Jae Myung since taking office in mid-2025.

Trade between the two countries has been growing steadily, with both exports and imports increasing. Vietnam is now South Korea’s third biggest trading partner, while South Korea is Vietnam’s second biggest source of imports and third biggest market for exports. Investment figures tell the same story, with South Korea the largest foreign investor in Vietnam. Thousands of registered projects, including major commitments in electronics manufacturing, have made Korean companies a fixture in the Vietnamese economy.

Trump Tariff Brings Korea and Vietnam Closer

Under the new policy, South Korean goods face a 15 percent rate in the U.S., and Vietnamese exports face 20 percent. That has become a serious adjustment for two export-driven economies. The Korea-Vietnam deal is also a smart backup strategy. By building stronger ties, both countries rely less on the U.S. market and strengthen their place in regional trade. Their exports fit well together instead of competing, making the partnership both practical and political.

Key Areas of Vietnam-Korea Collaboration

In nuclear energy, South Korea is set to help Vietnam develop its first reactors. In transport, Korean firms are eyeing Vietnam’s North-South high-speed railway project, which would connect Hanoi and Ho Chi Minh City. The semiconductor industry is another focal point. The Vietnamese market is expected to keep expanding at a double-digit pace in the coming years. Korean technology firms are tying operations into Vietnam’s growing production base.

The Vietnam-Korea Free Trade Agreement gives both countries flexibility. This will help both countries in trading alongside the ASEAN-Korea FTA. Since it began, trade has more than doubled, showing that deals like this can bring lasting results. The current push to $150 billion builds directly on that track record.

People and Politics Driving Deeper Ties

Millions of tourists a year journey back and forth between Vietnam and South Korea. Large Korean Vietnamese families maintain those personal relationships strongly in ways trade statistics can’t measure. Both governments are now putting money and effort into expanding the relationship across several areas. Renewable energy, advanced technology, and the supply chains for critical minerals are all on the list. 

South Korea’s manufacturing and tech industries rely on graphite, tungsten, and bauxite. Vietnam’s reserves of rare earth make it a strong match for. This shared interest has helped push the relationship to the level of a comprehensive strategic partnership. What began as a trade focus now includes security ties, cultural exchanges, and coordinated work on global issues. With the trump tariff and other changes reshaping trade rules, the deal looks like a practical way to stay ahead of potential disruptions.