Vietnam's To Lam meets South Korean leader Lee in Hanoi

Vietnam's top leader To Lam hosted South Korean President Lee Jae Myung in Hanoi on Wednesday, a meeting that was expected to yield multiple cooperative agreements.

South Korea is Vietnam's biggest source of foreign investment and one of its top trading partners, with two-way trade topping $90 billion last year.

Lee's visit showed "high political trust" between the two countries, Lam said during the meeting at the presidential palace.

It was the second meeting in less than a year between the two Asian leaders, following Lam's visit to Seoul in August.

Hanoi wants more South Korean investment in infrastructure, advanced electronics manufacturing, semiconductors, artificial intelligence and renewable energy.

Lam, who became president this month in addition to Communist Party boss, is pushing a "new growth model" that prioritises digital and technological innovation as Vietnam aims to escape the "middle-income trap".

The World Bank said in its 2024 development report that countries usually hit such a "trap" when they reach around 10 percent of annual US GDP per capita, which can prove tough to move past.

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Vietnam and South Korea have set a target of achieving $150 billion in bilateral trade by 2030.

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