Free trade deal boosts South Korea’s exports to Vietnam
In this article (5)
Vietnam was the world’s third largest importer of South Korean products during January-October, data show. The Korea-Vietnam Free Trade Agreement, which took effect a year ago, has largely expanded exports from South Korea to Vietnam.
South Korea’s shipments to Vietnam in the first 10 months climbed 12 percent from the same period last year to $26.4 billion, citing reports from the trade ministry and the Korea Trade-Investment Promotion Agency.
South Korea’s trade ministry said the rising exports made Vietnam the world’s third-largest importer of South Korean products during the January-October period, after China and the U.S.
Vietnam’s General Statistics Office on Friday released trade data for the first 11 months, putting South Korea among the top exporters to Vietnam in a wide range of products from iron and steel and garment materials to phones and consumer goods.
In particular South Korea was the biggest seller of computers and electronics to Vietnam, with a total value of $7.94 billion, up 26.3 percent from the year-ago period. It was also the second biggest supplier of machinery to Vietnam, with exports of $5.12 billion, up 9.5 percent.
Fuel shipments from South Korea increased fivefold to 1.6 million tons, the biggest expansion from all suppliers.
Statistics showed that Vietnam has been recording a larger trade deficit with South Korea since 2010. The decifit hit nearly $19 billion last year.
A survey by the Korea investment promotion agency found 42 percent of 60 South Korean exporters increased their shipments to Vietnam following the enactment of the Korea-Vietnam FTA in December 2015. A majority expected the free trade deal to continue helping their business in 2017.
For years, South Korea has been the biggest foreign investor in Vietnam, driven by major projects of electronics giants LG and Samsung.
Questions & Answers
Q.Which countries were the largest importers of South Korean products during January-October, preceding Vietnam?
Which countries were the largest importers of South Korean products during January-October, preceding Vietnam?
China and the U.S. Were the largest importers of South Korean products during the January-October period. Vietnam ranked as the third-largest importer, following these two countries in terms of value.
Q.What was the total value of South Korean computer and electronics exports to Vietnam, and how much did this increase?
What was the total value of South Korean computer and electronics exports to Vietnam, and how much did this increase?
South Korea's computer and electronics exports to Vietnam totalled $7.94 billion. This figure represents a significant increase of 26.3 percent compared to the same period in the previous year.
Q.What is the historical trend of Vietnam's trade balance with South Korea?
What is the historical trend of Vietnam's trade balance with South Korea?
Statistics indicate that Vietnam has consistently recorded a larger trade deficit with South Korea since 2010. This deficit reached nearly $19 billion in the last year reported.
Q.What percentage of South Korean exporters increased shipments to Vietnam after the free trade agreement took effect?
What percentage of South Korean exporters increased shipments to Vietnam after the free trade agreement took effect?
A survey conducted by the Korea investment promotion agency found that 42 percent of the 60 South Korean exporters surveyed reported an increase in their shipments to Vietnam following the FTA's enactment.
Reader pulse
What's the biggest impact of the FTA?
Be the first to vote