{"id":2201503,"date":"2023-06-26T17:30:37","date_gmt":"2023-06-26T08:30:37","guid":{"rendered":"https:\/\/koreapro.org\/?p=2201503"},"modified":"2023-06-27T19:31:02","modified_gmt":"2023-06-27T10:31:02","slug":"an-eye-on-china-south-korea-charts-a-course-for-closer-ties-with-vietnam","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/06\/an-eye-on-china-south-korea-charts-a-course-for-closer-ties-with-vietnam\/","title":{"rendered":"An eye on China, South Korea charts a course for closer ties with Vietnam"},"content":{"rendered":"
South Korean President Yoon Suk-yeol recently embarked on a three-day state visit to Vietnam to <\/span>reinforce<\/span><\/a> bilateral relations between the two nations.<\/span><\/p>\n Throughout the visit, Yoon emphasized his commitment to facilitating rich cultural exchanges with the Southeast Asian country and fostering economic ties, an area of particular importance as Seoul looks to reduce its dependence on China.<\/span><\/p>\n He also made clear South Korea\u2019s interest in deepening defense links with Hanoi, likely angling in part to find a new market for ROK weapons manufacturers.<\/span><\/p>\n But while Yoon\u2019s visit sketched out a promising blueprint of opportunities, it isn\u2019t devoid of potential pitfalls for South Korean companies, from rules limiting foreign investment to a lack of clarity around market reforms. And as Seoul charts this course, stakeholders will need to carefully weigh the risks and benefits.\u00a0<\/span><\/p>\n GROWING ECONOMY<\/b><\/p>\n The focus of Seoul\u2019s bid to boost ties with Hanoi is Vietnam\u2019s emerging consumer class. This <\/span>population<\/span><\/a> is nearly twice the size of South Korea\u2019s and is highly educated and immersed in a <\/span>dynamic startup ecosystem<\/span><\/a>.<\/span><\/p>\n Vietnam\u2019s economic indicators present a compelling case for this initiative. The nation has consistently exhibited an upward growth trend, with its gross domestic product (GDP) expanding by more than <\/span>8%<\/span><\/a> in 2022. Even amid global economic headwinds, the International Monetary Fund (IMF) forecasts that Vietnam\u2019s economy will grow by 5.8% this year.<\/span><\/p>\n Reflecting this upward trend, Yoon\u2019s state visit was accompanied by a 205-member business delegation. This group, the largest under the current administration, included leading figures from heavyweight South Korean firms such as Samsung Electronics, SK Group and Hyundai Motor Group.<\/span><\/p>\n Vietnam is familiar terrain for South Korean enterprises. According to the ROK presidential office, around <\/span>9,000<\/span><\/a> South Korean companies currently operate in the country. These businesses have a pronounced impact on the country\u2019s exports and GDP.<\/span><\/p>\n Through further integration with Vietnam, these firms have the opportunity to engage with a dynamic and rapidly expanding consumer base.<\/span><\/p>\n