President Lee and Party Secretary-General To Lam pledge stronger ties as $90 billion rail and $190 billion power initiatives move forward
Vietnam has embarked on ambitious national projects worth trillions of won, setting the stage for deeper cooperation with South Korea across multiple sectors. The country is preparing a $90 trillion won high-speed rail network linking Hanoi and Ho Chi Minh City, alongside $190 trillion won worth of power development projects that include nuclear power.
During a summit in Hanoi on August 11, President Lee Jae-myung and Vietnamese Communist Party Secretary-General To Lam adopted a joint statement aimed at strengthening their comprehensive strategic partnership. The two leaders agreed to expand collaboration in high-speed rail, nuclear energy, defense, and smart urban development, signaling new opportunities for South Korean companies to expand in Vietnam.
President Lee emphasized that “Vietnam’s large-scale state projects, such as nuclear power plants and the North-South high-speed railway, are vital to stable energy supply and modernized logistics. I believe Korean companies, with their proven expertise, can contribute greatly to their success.”
Korean firms are expected to play a key role in Vietnam’s plans for modernizing its infrastructure. Participation in both high-speed rail and nuclear projects could mark a significant milestone in Korea’s overseas technology exports.
Vietnam is also pushing forward with large-scale urban development projects. A Korean-style new town modeled after Pangyo is set to house approximately 150,000 residents, potentially becoming the first “exported Korean new town.” This project is expected to expand opportunities for Korean companies in construction, IT, and smart city solutions.
In light of rising tensions in the South China Sea and China’s expanding influence, Vietnam has been modernizing its defense capabilities. Korea is positioned to support these efforts through defense industry cooperation and technology transfer. To Lam confirmed that the two sides agreed to implement a $4 billion economic cooperation fund by 2030 to support joint projects.
President Lee also drew attention when he commented, “Vietnam has shown the strength to achieve unification by fighting against foreign powers.” While intended as praise of Vietnam’s resilience, the remark sparked mixed reactions, prompting clarification from the presidential office that the intent was to highlight Vietnam’s spirit of independence.