Among Korea’s major trading partners, Vietnam is expected to be the second largest export target in Korea in the near future.
The Korea International Trade Association (KITA) released a report on March 20, entitled “Vietnam is emerging as the second largest export market by 2020” and presented a positive outlook for the fast-growing Vietnamese market.
According to the KITA report, Vietnam, the third-largest exporter after China and the United States in 2017, will overtake the United States and become Korea’s second-largest exporter by 2020, Vietnam’s exports are expected to increase sharply at present, about 47 billion. It has increased from $96.58 billion to the highest.
Vietnam’s steady economic growth and the Korea-Vietnam Free Trade Agreement (FTA) signed on December 20, 2016 were the two main reasons for the increase in South Korean exports to Vietnam. In fact, after the Korea-Vietnam FTA, Vietnam’s exports themselves have increased by 31.9%, and the Vietnamese economy has grown by an average of 6% over the past four years.
Finally, the report revealed that Vietnam’s export maximization strategy in relation to FTA signatories, export restructuring to increase the amount of consumer goods, and strengthening cooperation with local Vietnamese companies can all help Korea expand exports to Vietnam.