SEOUL, August 2025 —South Korea and Vietnam are set to deepen their bilateral cooperation, with a significant focus on advancing Vietnam’s rail infrastructure. The initiative reflects the growing importance of modernizing transportation networks in Southeast Asia.

During a summit in Seoul, South Korean President Lee Jae Myung and General Secretary of Vietnam’s Communist Party To Lam agreed to create a favorable environment for South Korean companies to participate in Vietnam’s infrastructure projects, including high-speed railways.

A key project under discussion is the construction of a 1,541-kilometer North–South high-speed rail line connecting Hanoi and Ho Chi Minh City. Once completed, the project is expected to cut travel time between the two cities from nearly 30 hours to about five hours. The estimated cost is around 1,713 trillion dong (approximately USD 65–67 billion), making it one of the most ambitious infrastructure undertakings in the region.

This collaboration carries substantial implications for Vietnam’s transport sector, potentially boosting economic growth and enhancing regional connectivity. South Korean firms are expected to bring technological expertise and extensive experience to the project, helping improve efficiency and modernization of Vietnam’s railway system. The high-speed line is also aligned with Vietnam’s broader goal of achieving high-income nation status by 2045, with initial operations targeted around 2035.

Beyond high-speed rail, the partnership extends to urban infrastructure development in Bac Ninh province, as well as cooperation in renewable energy, finance, and advanced technology. President Lee also emphasized the importance of ensuring the stable operation of nearly 10,000 South Korean enterprises in Vietnam, underscoring the deep economic ties between the two nations.

The agreement between South Korea and Vietnam represents a strategic move to strengthen infrastructure development and foster economic growth in Southeast Asia, with the high-speed rail project as a cornerstone of this collaboration. It also reflects a broader regional trend of investing in modern rail networks to improve mobility and competitiveness.

Source: The Korea Herald