Economic Diplomacy And Investment Relations Between The Republic Of Korea And Vietnam

Over the past decade, economic relations between the Republic of Korea and Vietnam have evolved into one ofthe most dynamic bilateral partnerships in East and Southeast Asia. This paper examines the role of economic diplomacyin shaping trade expansion and foreign direct investment (FDI) flows between the two countries. Using secondary datafrom international organizations, government statistics, and policy reports, the study analyzes trade dynamics, investmentstructures, and institutional mechanisms supporting bilateral cooperation. The findings indicate that Korea has becomeone of Vietnam’s largest foreign investors, particularly in manufacturing and high-technology sectors, while Vietnam hasemerged as a strategic production base within Korea’s regional economic strategy. The paper argues that bilateral freetrade agreements and active diplomatic engagement have played a decisive role in facilitating these outcomes. At thesame time, increasing interdependence creates new structural challenges that require balanced and forward-lookingeconomic diplomacy.