According to Mr. Pham Khac Tuyen, Vietnam’s Commercial Counselor in South Korea, Vietnam’s exports to South Korea reached an estimated USD 23.4 billion in 2024, marking strong recovery and growth momentum after the COVID-19 pandemic. The total bilateral trade grew by 8.6% year-on-year, reflecting renewed vitality in both economies.
Key Export Drivers
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Vietnam’s major export categories — textiles and garments, transport vehicles, and machinery — all recorded significant growth.
“Looking at Vietnam’s export structure, small and medium-sized enterprises (SMEs) play a crucial role in boosting exports to the Korean market,” noted Mr. Tuyen.
Additionally, foreign-invested enterprises (FDI), particularly those with Korean investment in Vietnam, have shown strong performance in computers, electronic equipment, and components, helping boost overall export turnover.
The Vietnam–Korea Free Trade Agreement (VKFTA) and other multilateral trade deals have provided Vietnamese companies with preferential access to the Korean market. Vietnam’s geographical proximity — only a four-hour flight — and low logistics costs due to frequent shipping routes further enhance competitiveness.
High Utilization of Trade Preferences
Vietnam’s key export products such as textiles, seafood, and wood products have a preferential Certificate of Origin (C/O) utilization rate of 80–90%, maximizing tariff advantages under the VKFTA.
“Korea is diversifying its production bases, and Vietnam has emerged as one of the most attractive destinations,” said Mr. Tuyen. “Korean firms are expanding their manufacturing and investment presence in Vietnam, creating more opportunities for Vietnamese SMEs.”
Challenges in the Korean Market
While the outlook is positive, Vietnamese SMEs face intense competition from not only Korean domestic companiesbut also exporters from ASEAN and Latin America.
South Korea maintains stringent quality standards, often even higher than those of Europe or the U.S., as it adopts and improves upon the best global practices. This presents a major challenge for Vietnamese firms seeking long-term success.
Maintaining brand reputation and ensuring product compliance with Korean regulations are key to market retention.
Information Gaps and Business Support
Mr. Tuyen highlighted that limited access to market information remains a critical weakness for many Vietnamese SMEs. Many lack knowledge about:
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Consumer trends and market demands;
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Legal requirements, including product registration and dispute resolution;
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Distribution systems and e-commerce opportunities.
To address these issues, the Vietnam Trade Office in South Korea has been actively providing:
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Market intelligence reports and sector analysis;
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Trade promotion activities, business matchmaking, and exhibitions;
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Legal assistance for product certification and dispute settlement.
However, with limited resources and growing demand, the Trade Office emphasizes the need for collaboration among ministries, trade associations, and private entities to optimize support programs.
Policy Recommendations
Drawing from Korea’s SME support model, Mr. Tuyen proposed several measures to enhance Vietnamese export competitiveness:
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Financial Support Mechanisms – Establish startup and export promotion funds to strengthen SMEs’ financial capacity for market development.
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Integrated Support System – Combine assistance in information, capital, logistics, and customs into a unified framework.
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Public–Private Partnerships – Encourage coordination among government agencies, trade offices, and industry associations to maximize resource efficiency.
“Without sufficient financial capacity, SMEs cannot fully participate in market expansion activities,” Mr. Tuyen stressed. “Comprehensive support — from capital and logistics to information and branding — is essential for sustainable success.”