Vietnam - South Korea's third largest trade partner in 2023

Shipping containers seen at Cai Mep Port in Ba Ria-Vung Tau province

Vietnam remained South Korea's third-largest trade partner for the second straight year in 2023 despite a drop in both imports and exports from the Southeast Asian country, according to the Korea International Trade Association (KITA).

Two-way trade reached US$79.43 billion last year, with Vietnamese exports shrinking 12.3 per cent year-on-year to $53.49 billion.

At the same time, imports from Vietnam also dropped 2.9 per cent on-year to $25.94 billion, and South Korea's trade surplus shrank 19.5 per cent to $27.55 billion.

Vietnam surpassed Japan for the second consecutive year in 2023 to retain the third position, following China with $267.66 billion and the US with $186.96 billion.

KITA blamed last year's drop in trade with and exports to Vietnam on falling chip exports. South Korean semiconductor shipments to Vietnam tumbled 21.6 per cent on-year to $12.73 billion in 2023.

Four other export items – flat panels and sensors, petroleum products, wireless communications equipment and synthetic resins – also went down last year, according to the data.

Bilateral trade between Vietnam and South Korea has been growing exponentially since the two countries established diplomatic relations in 1992 when trade hit only $500 million.

The trade volume gained further momentum as the two nations signed a free trade agreement in 2014.

Vietnam was the RoK’s eighth-largest trading partner that year, but its ranking surged to fourth place a year later. In 2022, Vietnam outpaced Japan to become South Korea’s third-largest trading partner for the first time.

TB (according to VNS)