At more than US$ 61 billion, Vietnam - Korea trade increased by 123 times

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Structure of turnover ratio of the three biggest partners of Vietnam and the remaining markets in 2017. Chart: T. Binh.

Surpass the United States

Regarding Vietnam's export and import activities in the coming years from the statistics of the General Department of Vietnam Customs, the export and import activities between Vietnam and South Korea are continuously growing faster than the average level, especially when Samsung Group opened large-scale production of cell phones, tablets and electronic products in Bac Ninh (in late 2009) and Thai Nguyen (in early 2014).

An important milestone in the development of trade relation between the two countries was recorded in May 2017. At that time, the total value of bilateral export and import reached nearly US$ 24 billion (Vietnam exported about US$ 5.5 billion and imported about US$ 18.5 billion). Accordingly, South Korea surpassed the United States to become Vietnam's second largest trading partner (behind China).

South Korea not only surpassed the United States in bilateral trade turnover, but it also surpassed China to become the market which Vietnam sufferedthe largest trade deficit.

Thus, May 2017 recorded many marks in the trade relation between Vietnam and South Korea.

It can be said that in the 25 years since the two countries established diplomatic relation (since 1992), they have never seen such a breakthrough in import and export activities between Vietnam and South Korea.

By 2017, according to statistics of the General Department of Vietnam Customs, the total value of export and import turnover between the two countries reached US$ 61.557 billion, accounting for nearly 14% of total trade turnover of Vietnam. In particular, the import value from Korea was US$ 46.734 billion and the export value of Vietnam was US$ 14.823 billion. Thus, Vietnam suffered a trade deficit of nearly US$ 32 billion.

Noteworthy, at the time when the two countries established diplomatic relations, bilateral trade turnover stopped at a modest figure of about US$ 0.5 billion, then after 25 years the figure increased by 123 times.

In 2017, Vietnam had 3 groups of goods exported to South Korea valued at US$ 1 billion or more, such as the phones; textiles; computers, electronic products and components.

While in the opposite direction, South Korea dominated with 9 groups of "billion dollars" exported to Vietnam such as computers, electronic products and components; devices; phones and accessories fabrics; gasoline. Particularly, the group of computers, electronic products and components reached US$ 15.33 billion.

Looking to a turnover of US$ 100 billion

This is the goal set during the 8th Session of the Vietnam-South Korea Joint Committee on nuclear, energy, industry and trade cooperation; and the Second Meeting of the Joint Committee on the Implementation of the Vietnam-South Korea Free Trade Agreement (VKFTA) led by Minister of Trade and Industry of Vietnam, Mr. Tran Tuan Anh and Minister of Trade, Industry and Energy of South Korea (MOTIE), Mr. Paik Ungyu in HCM City on 2 February 2018.

According to information from the Ministry of Industry and Trade, the two sides discussed and agreed on bilateral cooperation in the field of industry, trade and energy.

The notable information is the content of cooperation on the project construction of power plants in the form of BOT; oil and gas; recycled energy; development of supporting industries; textiles; distribution and logistics. In particular, the two sides promoted bilateral trade to reach a target of US$ 100 billion by 2020.

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Obviously, with two-way trade reaching nearly US$ 61.6 billion last year and a growth rate of tens of percent per year (41.3% in 2017), the target of US$ 100 billion by 2020 signed by Minister of Industry and Trade of Vietnam, Mr. Tran Tuan Anh and South Korea's Minister of Trade, Industry and Energy, Mr. Paik Ungyu is feasible.