In 2024, Vietnam will continue to maintain its position as Korea’s third largest trading partner, after China and the US.

According to statistics from “K-stat” of the Ministry of Trade, Industry and Energy (MoTIE) and the Korea International Trade Association (KITA), in 2024, Vietnam will continue to be Korea’s third largest trading partner, after China and the US.

Total trade between South Korea and Vietnam is expected to increase by 9.2% from $79.4 billion in 2023 to $86.7 billion in 2024. Analysis by South Korean authorities shows that the increase in trade with Vietnam and the expansion of the trade balance are largely due to the recovery in the production and export of semiconductor chips, which had stagnated last year. The items exchanged between the two countries have also evolved from labor-intensive products such as textiles to high-value-added items such as semiconductors and wireless communications equipment.

In particular, since the Korea-Vietnam Free Trade Agreement (FTA) was signed in 2014, trade turnover between the two countries has increased more than 2.5 times, from 30 billion USD to 80 billion USD. Recently, the export of products related to “K-beauty” and “K-food” has been increasing due to the influence of the Korean Wave (Hallyu).

During the same period, South Korea has emerged as a major player in Vietnam’s economy. A recent report by KITA showed that South Korea was Vietnam’s second-largest importer and third-largest exporter in the first 11 months of 2024.

Regarding exports from Vietnam, South Korea is the third largest market with a turnover of 23.4 billion USD, after the US’s 109 billion USD and China’s 55.1 billion USD. Regarding imports, Vietnam’s total import turnover from South Korea is 51.1 billion USD, still in second place after China’s 130.5 billion USD but far surpassing Japan (19.6 billion USD) and the US (13.6 billion USD).

Among the number of foreign tourists to Vietnam, South Korea ranked first with 4.1 million visitors, equivalent to 25% of the total 15.8 million foreign tourists to Vietnam. This figure far exceeded the 3.35 million visitors from mainland China, 1.18 million visitors from Taiwan (China) and 700,000 visitors from the US.

Hong Ji-sang, head of the trend analysis department at KITA, said the Association of Southeast Asian Nations (ASEAN) is being touted as an alternative to the US- and China-heavy diversification of South Korea’s trade and exports. Among the ASEAN representatives, Vietnam is certainly a must. Vietnam is also an important trade partner of South Korea. The two countries are gradually developing their cooperative relations in a new stage suitable for growth based on trust.