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South Korea and Vietnam huddle together against Trump’s tariff broadside

Vietnam wants South Korean companies to expand their operations. Samsung already produces more than 60 per cent of its phones in the country

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South Korea’s Foreign Minister Cho Tae-yul (left) shakes hands with Vietnam’s Prime Minister Pham Minh Chinh during a meeting in Hanoi on Wednesday. Photo: AFP
South Korea and Vietnam said on Wednesday they had agreed to cooperate closely, after the announcement of US tariffs that posed 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 were 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 per cent 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 Southeast Asian country’s export model.

South Korean Foreign Minister Cho Tae-yul met his Vietnamese counterpart Bui Thanh Son on Tuesday and Vietnam’s Prime Minister Pham Minh Chinh on Wednesday. Earlier this week, South Korea’s industry and trade minister also visited Vietnam to discuss the response to the looming tariffs.

Vietnam said it was encouraging South Korean businesses to expand operations in the Southeast Asian nation, with its priorities being 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 foreign ministry’s statement said.

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