On April 22, 2024, South Korea’s Ministry of Climate, Energy and Environment, led by Minister Kim Sung-hwan, signed two Memoranda of Understanding (MOUs) with Vietnam in Hanoi. The first MOU focuses on cooperation in power infrastructure, while the second addresses water security. These agreements were exchanged immediately after the Korea-Vietnam summit, attended by President Lee Jae-myung and General Secretary To Lam. The MOUs aim to leverage South Korea’s expertise to support Vietnam’s rapid economic growth and infrastructure needs.
Vietnam is experiencing a 6–7% annual economic growth rate, resulting in rising power demand and urgent infrastructure expansion. Under its 8th National Power Development Plan, Vietnam plans to invest $136.3 billion by 2030 to triple its power generation capacity and increase renewable energy sources. The water security MOU elevates previous cooperation to ministerial level, targeting improved water management, flood mitigation, and expanded water supply and wastewater treatment. Key stakeholders include government agencies, power companies, and water management authorities from both countries.
Implementation will involve joint research, expert exchanges, and training programs, with participation from Korea Electric Power Corporation, power trading companies, and renewable energy firms. Vietnam’s power infrastructure investment from 2026 to 2030 will include $118.2 billion for power generation and $18.1 billion for transmission and distribution networks. The water security agreement supports Vietnam’s goal to achieve a 10% leakage rate and over 30% urban wastewater treatment by 2030. Both MOUs promote digital technologies such as AI, IoT, and digital twin systems for smarter infrastructure.
Frequently asked questions include: What are the main objectives of these MOUs? The agreements aim to strengthen Vietnam’s power and water infrastructure through knowledge sharing and joint projects. How will the MOUs impact Vietnam’s renewable energy transition? South Korea will provide expertise in energy storage and smart grids to facilitate Vietnam’s shift to renewables. What is the significance of the water security MOU? It upgrades cooperation to ministerial level, enhancing project execution and technological exchange for water management.
The Korea-Vietnam MOUs represent a strategic partnership that addresses Vietnam’s urgent infrastructure needs amid rapid economic growth. South Korea’s expertise in power systems and water management, combined with digital technologies, will help Vietnam achieve its ambitious targets for renewable energy and urban water treatment. Elevating cooperation to the ministerial level ensures stronger project execution and policy alignment. These agreements are poised to deliver substantial improvements in Vietnam’s infrastructure, supporting both economic development and environmental sustainability.