Korea, Vietnam agree to cooperate in supply chain of rare-earth minerals

During a summit meeting with Vietnamese President Võ Văn Thưởng on Friday, President Yoon Suk Yeol, who is on a state visit to Vietnam, agreed to build a "core mineral supply chain center" to help develop Vietnam's rare-earth elements. It is noteworthy that cooperation with Vietnam has begun in earnest to reduce dependence on China in the supply chain of rare-earth elements, which is called "Staples of Industry 4.0," as core materials for high-tech industries such as semiconductors and electric vehicle batteries. South Korea agreed to transfer retired vessels to Vietnam, which is in dispute with China over territorial disputes in the South China Sea, and signed a memorandum of understanding to support the strengthening of maritime security capabilities. Participation in the U.S. Indo-Pacific Strategy to contain China is also taking shape.

The two leaders held talks at the Presidential Palace in Hanoi, Vietnam, for 95 minutes from 9:15 a.m. (local time) on the same day and adopted an action plan to implement the "Comprehensive Strategic Partnership" between the two countries.

“We decided to build a foundation for cooperation by developing a supply chain center for core minerals related to the development of abundant rare-earth elements in Vietnam,” President Yoon said in a joint press release right after the summit. Vietnam ranks second in rare earth reserves, following China. Korea, which relies on China for 52.4% of its total imports of rare-earth elements, will begin cooperation with Vietnam to reduce its dependence on China by diversifying its supply chain. In order to expand economic cooperation with Vietnam, President Yoon greatly increased the size of the economic delegation (205 companies) compared to the size of that (122 companies) for his visit to the U.S. in April.

“Vietnam is a key partner in implementing our Indo-Pacific Strategy and the Korea-ASEAN Solidarity Initiative,” President Yoon said. “The ‘Memorandum of Understanding on Cooperation between the Korea Coast Guard and the Ministry of Public Security of Vietnam’ signed this time will lead to active support for Vietnam’s enhanced maritime security capabilities and expanded cooperation in the defense industry.”

“Vietnam has designated Korea as an important priority country in its economic and social development projects and foreign policies,” President Yoon said. “We reached a consensus on materializing a comprehensive strategic partnership, including diplomacy, defense, and security.”


Joo-Young Jeon aimhigh@donga.com