The event took place on July 1st in Seoul, South Korea, and was witnessed by Prime Minister Pham Minh Chinh and leaders from both countries.

Green fuel transition

Accordingly, the parties will cooperate to promote the conversion of the Quang Tri thermal power project from using coal fuel to using the more environmentally friendly LNG fuel; develop low-carbon emission reduction projects, including a green hydrogen production project. In the signed agreement, the two sides will also cooperate in implementing projects related to carbon credits; cooperate in research to establish a central LNG hub; and promote investment research or support Quang Tri province in attracting investment in other potential and sustainable development areas.

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SK E&S, Quang Tri province and T&T Group signed a memorandum of understanding on cooperation in energy transition and green growth.

Previously, on April 15th, the People's Committee of Quang Tri province issued a document agreeing in principle to allow the T&T - SK E&S consortium to research, survey, and prepare the dossier for converting the Quang Tri Thermal Power Plant project into the Quang Tri LNG project.

The People's Committee of Quang Tri province has also submitted a document to the Prime Minister and the Ministry of Industry and Trade requesting consideration and approval for the conversion of coal fuel to LNG for the Quang Tri Thermal Power Plant in the Southeast Economic Zone, Quang Tri province, and updating it into the implementation plan for the Power Development Plan VIII. At the same time, the province agreed to select the report on the conversion of fuel for the Quang Tri Thermal Power Plant project to the Quang Tri LNG project, proposed by the T&T Group - SK E&S consortium, to be included in the submission.

Mr. Vo Van Hung, Chairman of the Quang Tri Provincial People's Committee, stated that the province will create favorable conditions for the T&T Group and SK E&S joint venture in the process of researching, surveying, and preparing proposals for investment approval for projects in the aforementioned fields, in accordance with Vietnamese law.

Developing sustainable green energy projects in Quang Tri

Within the framework of the Vietnam-Korea Business Forum, SK Group and the People's Committee of Quang Tri province also exchanged a memorandum of cooperation on energy solutions packages. In addition, ministries, departments, localities, and businesses from both countries also exchanged numerous cooperation agreements with Korean corporations in the fields of investment, trade, energy conversion, biotechnology, industrial park construction, semiconductor technology, pharmaceuticals, aviation, logistics, IT, and mechanical engineering…

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The Vietnam-Korea Business Forum was attended by leaders from ministries, departments, localities, and businesses from Vietnam and Korea (Photo: VGP/Nhat Bac).

At the forum, both Korean and Vietnamese businesses raised the issue of the need for the business communities of the two countries to promote economic, trade, and investment cooperation, especially large-scale investment projects in key sectors; to coordinate closely, leverage all available potential and advantages, and strengthen global supply chains and production chains.

Mr. Yoo Youngwook, Vice General Director of SK E&S (a subsidiary of SK Group), stated that to support Vietnam's clean energy transition towards the Netzero goal by 2050, SK E&S is focusing on building and developing a sustainable energy ecosystem. "SK E&S is planning to collaborate with T&T Group to develop sustainable green energy projects in Quang Tri province," he said.

SK E&S is an energy company belonging to SK Group, South Korea's second-largest private conglomerate. It currently owns an ecosystem of 304 subsidiaries and branches operating in various fields such as chemicals, semiconductors, telecommunications, and biotechnology. SK E&S was the first private company in South Korea to build a complete LNG value chain, engaging in next-generation energy business in the hydrogen industry and establishing a green portfolio encompassing renewable energy, energy solutions, and environmentally friendly LNG. It was also the first private company in South Korea to directly import LNG in 2006.

Previously, in June 2023, SK E&S and T&T Energy (a member of T&T Group) signed a memorandum of understanding to jointly develop an LNG terminal and a gas-fired power plant.

South Korea currently ranks number 1 in direct investment in Vietnam (with a cumulative total of US$87 billion across nearly 10,000 projects); number 2 in development and tourism cooperation; and number 3 in labor and trade cooperation (reaching US$76 billion in 2023). South Korea is Vietnam's third largest export market (after China and the United States) and its second largest import market (after China).

The two countries aim to increase bilateral trade to $100 billion in the near future and $150 billion by 2030.

Minh Ngoc