Why Vietnam is turning to Korea for K9 howitzers and shipbuilding cooperation

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Why Vietnam is turning to Korea for K9 howitzers and shipbuilding cooperation

Published: 15 Aug. 2025, 17:06 Updated: 17 Aug. 2025, 20:12

Audio report: written by reporters, read by AI

President Lee Jae Myung, right, and General Secretary To Lam of the Communist Party of Vietnam, left, shake hands during a summit at the presidential office in Yongsan, central Seoul on Aug. 11. [PRESIDENTIAL OFFICE]

Korea and Vietnam are drawing closer in the defense and shipbuilding sectors following a bilateral summit earlier this week, with Korea beginning exports of weapons to Vietnam, a comprehensive strategic partner. Seoul is expected to strengthen cooperation in shipbuilding and logistics at Hanoi's request.

Hanwha Aerospace signed a government-to-government (G2G) contract with Vietnam in late July to export more than 25 K9 self-propelled howitzers, worth approximately 350 billion won ($251 million), according to defense industry sources on Thursday.

This marks the first time Korea has exported weapons to Vietnam, which has become the 11th country in the world to purchase the K9.

On Monday, President Lee Jae Myung and General Secretary To Lam of the Communist Party of Vietnam held a summit at the presidential office in Yongsan, central Seoul. The two heads of state agreed to resume the joint defense industry and logistics committee — a vice-ministerial consultation body — for the first time in 17 years since 2008.

As the committee discusses details such as weapons system upgrades and military equipment procurement, observers expect Korean arms exports to Vietnam to grow.

In its defense market guidebook on Vietnam published in December last year, the Defense Acquisition Program Administration (DAPA) listed promising export items to Vietnam by 2033, including 108 K9 self-propelled howitzers worth $500 million, six Cheongung-II medium-range surface-to-air missile systems worth $206 million, 110 gunner sights for armored vehicles and tanks worth $32.92 million and 218 laser recognition weapon systems worth $26.08 million.

HD Hyundai Vietnam Shipbuilding (HVS), a shipyard in Khanh Hoa Province, south-central Vietnam [HD HYUNDAI]

Other potential areas of participation include a project to replace aging MiG-21 fighter jets, which could amount to a value of $460.84 million, and a frigate modernization program amounting to $266 million, according to DAPA.

Vietnam, which is pushing military modernization, has a strong interest in Korea’s proven weapons systems, partly due to the need to prepare for territorial disputes stemming from China’s militarization of the South China Sea.

“Vietnam has a demand for high-speed patrol boats and small submarines to prepare for South China Sea sovereignty disputes,” said Kim Ki-won, a professor of military studies at Daekyeung University. “There is also an advantage in that, as a one-party state, Vietnam is less likely than politically unstable countries to cancel weapons orders abruptly.”

Shipbuilding cooperation is also accelerating. On Tuesday, HD Korea Shipbuilding & Offshore Engineering, an intermediate holding company for HD Hyundai’s shipbuilding division, signed a memorandum of understanding with Vietnam Maritime Corporation (VIMC) for comprehensive shipbuilding cooperation.

Vice Chairman of HD Hyundai Chung Ki-sun, left, converses with CEO of FPT Corporation Nguyen Van Khoa, right, at a state dinner for the Korea-Vietnam summit at the Blue House Guest Hall on Aug. 11. [YONHAP]

The plan calls for raising annual production at HD Hyundai Vietnam Shipbuilding (HVS), a subsidiary of HD Hyundai Mipo, from 15 ships to 23 by 2030. HVS is a shipyard in Khánh Hòa Province, south-central Vietnam, specializing in bulk carriers and container ships, established in 1996 as a joint venture between HD Hyundai Mipo and state-owned Vinashin, now renamed Shipbuilding Industry Corporation (SBIC).

This move is closely tied to Vietnam’s proactive requests. On Tuesday, Lam met with Korean companies, including HD Korea Shipbuilding & Offshore Engineering, and the next day visited Busan New Port’s Pier 7 — operated by Dongwon Global Terminal (DGT) — Korea’s first fully automated terminal.

According to Vietnamese media, Lam told the Korean side, “I was deeply impressed by Korea’s efforts to build a comprehensive logistics ecosystem beyond cargo transport. Please help us train Vietnamese port operations specialists.”

Highly dependent on trade, Vietnam is expanding investment in port and airport infrastructure, centered on Ho Chi Minh City, to become a logistics hub in Southeast Asia.

A K9 howitzer [JOONGANG ILBO]

Although Vietnam selected shipbuilding as a priority industry in its maritime economic development strategy in the late 1990s, state-owned shipyards went bankrupt after the 2008 global financial crisis.

However, in 2021, it designated shipbuilding as a national strategic industry, setting a goal of capturing a 1 percent share of the global market by 2040, up from 0.61 percent in 2024. Achieving this requires transitioning from bulk carriers and small container ships to high-value-added vessels, such as large liquefied natural gas (LNG) carriers, and developing infrastructure like smart ports to become a logistics hub — areas where Korea’s technology is needed.

“For Korean shipbuilding and logistics companies, entering Vietnam could reduce costs through low-wage employment and serve as a bridgehead into Southeast Asia,” said Yang Jong-seo, a senior researcher at the Export-Import Bank of Korea. “For Korean shipbuilders, it will be important to leverage technological advantages to negotiate substantial incentives from the Vietnamese government.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM HYO-SEONG [[email protected]]