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Significance of President Lee Jae-myung’s State Visit to Vietnam - A New Horizon for Korea–Vietnam Economic Cooperation: From “Manufacturing” to “Strategic Technologies”

2026.04.27

President Lee Jae-myung’s four-day state visit to Vietnam last week, accompanied by a business delegation, marked a pivotal moment in reaffirming the strongest commitment to cooperation since the establishment of diplomatic ties between Korea and Vietnam. Amid the sweeping tides of global supply chain restructuring and the climate crisis, both countries declared a shift beyond the traditional manufacturing model based on low labor costs toward a strategic partnership centered on energy security and advanced technologies. 
 
 
1. Resolving Power Shortages and Energy Sovereignty: Prospects for Renewed Nuclear Cooperation
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Vietnam is facing chronic power shortages due to rapid industrialization and the expansion of its digital economy. As AI and digital infrastructure development require vast amounts of electricity, securing a stable power supply has become a key factor in national competitiveness. 
 
During this visit, discussions focused on concrete cooperation measures to implement Vietnam’s 8th National Power Development Plan (PDP8) and energy transition policies. The Vietnamese government is pursuing a gradual reduction of coal-fired power generation while promoting renewable energy and the introduction of nuclear power, which is expected to expand technical and policy cooperation between the two countries. 
 
In the nuclear sector, there are clear signs of a shift toward an integrated cooperation model that goes beyond simple EPC (Engineering, Procurement, and Construction), encompassing core equipment supply, financing structures, and operations. Notably, the four-party MOU on nuclear project financing cooperation signed among the Export-Import Bank of Korea, Korea Trade Insurance Corporation, Korea Electric Power Corporation, and PetroVietnam (PVN) symbolically demonstrates this trend. It suggests that future nuclear projects in Vietnam may be pursued under an integrated framework combining policy finance, export credit, and project owners, with increased participation by Korean companies through financial packages. 
 
Additionally, LNG power projects are increasingly being developed through joint venture structures with local partners, with investment structuring and regulatory review conducted from the early stages. This trend is expected to increase demand for specialized legal advisory services across project financing and contractual structures, alongside anticipated changes in energy-related laws and licensing systems. 
 
 
2. Decarbonization and the Restructuring of ESG Supply Chains
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For Vietnam, which has declared its goal of achieving “Net Zero by 2050,” Korean companies’ technological expertise and know-how are essential. The Vietnamese government is currently piloting a carbon market with the aim of officially launching it in 2029. Accordingly, the implementation of bilateral “Climate Change Cooperation Agreements,” including preparations for an Emissions Trading System (ETS) and the development of a hydrogen economy ecosystem, is expected to accelerate. 
 
While development cooperation, aid, and private-sector collaboration in energy technologies are likely to expand, companies operating in Vietnam will also face increasingly stringent environmental regulations and potential carbon border adjustment mechanisms. As a result, proactive responses to environmental and energy regulations and the establishment of robust compliance systems are becoming critical elements of corporate competitiveness. 
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3. AI and Digital Transformation: A New Direction for Policy Finance

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Vietnam is actively pursuing a national AI strategy with the goal of becoming a digital hub in Southeast Asia. Alongside the introduction of AI-related legislation, regulatory frameworks for data protection and cybersecurity are also being rapidly established. 
 
During the summit, expanding cooperation in science, technology, and digital sectors was a key agenda item, with a strong emphasis on strengthening digital partnerships based on Korea’s ICT capabilities. At the government level, there are also indications of a shift beyond traditional infrastructure-focused ODA toward the active use of policy finance for AI and digital infrastructure. This suggests that the scope of Official Development Assistance (ODA), such as the Economic Development Cooperation Fund (EDCF) of the Export-Import Bank of Korea, may expand in the following areas: 
 
<ul>
	<li>Data centers and cloud infrastructure 
	Policy finance is expected to be increasingly linked to the development of power, server, and network infrastructure that underpins the digital economy. </li>
	<li>Smart cities and public AI systems 
	Projects integrating AI into transportation, public safety, and administrative systems are evolving from simple IT services into comprehensive public infrastructure initiatives. </li>
	<li>AI talent development and digital transformation programs 
	A holistic ecosystem encompassing not only technological infrastructure but also human capital and institutional frameworks is expected to emerge. </li>
</ul>
  
In line with these policy changes, there are already cases in the market where data center development and digital infrastructure investment projects are being pursued alongside energy projects. This trend is likely to evolve into integrated projects combining power, telecommunications, land, and investment structures. 
 
Such developments are expected to create diverse business opportunities for Korean companies, including the establishment of R&D centers and the development of smart cities and smart factories. At the same time, the importance of responding to related laws and regulations will continue to grow. 
 
The Korea–Vietnam relationship is now evolving beyond a simple investment and employment partnership into a “comprehensive strategic partnership” aimed at navigating complex global dynamics. In particular, new institutional frameworks—such as changes in the energy mix, the introduction of AI regulations, and the implementation of carbon neutrality policies—are being introduced at an unprecedented pace. 
 
In this context of macro-level transformation, companies seeking to operate stably in Vietnam must monitor local policy developments in real time and respond proactively and meticulously to newly established legal guidelines. 
 
Celebrating its 20th anniversary since the establishment of its Vietnamese entity in 2007, Jipyong Vietnam continues to stand at the forefront of these changes, providing practical solutions to support the safe and successful investment of Korean companies</div>
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