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Vietnam to become Korea’s No. 2 export market in 2022: KITA report

According to Pulse by Maeil Business News Korea,

Vietnam is expected to replace the United States as South Korea’s second biggest export market after China in 2020, a report said.

According to a report by Institute for International Trade under Korea International Trade Association (KITA) on Wednesday, Korea’s shipments to Vietnam are estimated at $100 billion in 2020, given the growth rate in recent years.

Vietnam ranked sixth export destination in 2014 and it ascended to third last year.

Korea’s share in Vietnam’s imports ballooned to 22.1 percent last year from 8.5 percent in 2007.

A bilateral free trade deal that went into effect in December 2015 provided traction to commerce between the two nations.

Korea’s exports to the Southeast Asian market surged 60.5 percent and imports 61.1 percent over the last two years.

Korea registered a trade surplus of $31.58 billion against Vietnam last year, raising the possibility that Vietnam may complain about the trade imbalance, the trade body warned.

Korea needs to reform the current export portfolio with too much dependence on intermediate and capital goods by increasing shipments of consumer goods, said Jung Gui-il, a KITA researcher.

To prevent any trade friction, Seoul should continue aid for economic development in Vietnam, it said.

By Moon Ji-woong and Cho Jeehyun

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (Mar. 21, 2018)

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