SEOUL– South Korea and Vietnam agreed Monday to enhance cooperation on supply chains of key minerals and renewable energy, Seoul’s industry ministry said.
Industry Minister Lee Chang-yang and his Vietnamese counterpart, Nguyen Hong Dien, signed three memorandums of understanding in Seoul earlier in the day after the summit between President Yoon Suk-yeol and Vietnamese President Nguyen Xuan Phuc, according to the Ministry of Trade, Industry and Energy.
One of the agreements calls for enhanced cooperation in exploring and developing major minerals, strengthening their supply chains and promoting investment in the field.
Vietnam is the world’s No. 2 nation in terms of rare earth element deposits and has the third largest amount of tungsten. South Korea has advanced technologies in mining and refining such minerals, according to the ministry.
The two nations also upgraded a separate MOU on cooperation on electric power generation in an effort to work more closely for the technology development of ammonia, wind power and other renewable energy sectors.
The last agreement was meant to expand benefits of the Vietnam-Britain Free Trade Agreement (FTA) regarding the rules of origin for clothing made with Korean textiles, the ministry said.
“The two nations will also work more closely in greenhouse gas reductions, clean energy and various other fields so as to promote bilateral trade and ensure stable supply chains,” the ministry said in a release.
Later in the day, Finance Minister Choo Kyung-ho and Vietnam’s investment minister, Nguyen Chi Dung, signed a “framework” on the bilateral financial cooperation, according to the finance ministry.
Under the agreement, the two nations vowed to work together to explore high-speed railway, metro and various other major high-value added projects, which will be funded by South Korea through its economic development cooperation fund and economic development promotion facility tools.
They also decided to hold an annual meeting to check the development of their push for those envisioned projects, according to the ministry.
“South Korea will strive further to advance cooperative ties with Vietnam and to promote our companies’ making inroads into overseas markets,” the ministry said.
Source: Yonhap News Agency