NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF TRADE AND INTERNATIONAL ECONOMICS

ANALYSIS AND ASSESSMENT OF THE IMPORT SITUATION OF

GOODS IN THE PERIOD 2015-2023 OF SOUTH KOREA AND
IMPLICATIONS FOR VIETNAM

Full name:
Student ID:
Specialized classes:
Instructors: Assoc. Prof. PhD Nguyen Thuong Lang
 HA NOI/2024

TABLE OF CONTENTS
DECLARATION..............................................................................................................i
ACKNOWLEDGMENT..................................................................................................i
LIST OF ABBREVIATIONS.........................................................................................iii
LIST OF FIGURES AND TABLES..............................................................................iv
INTRODUCTION...........................................................................................................1
CHAPTER 1: THE THEORETICAL BASIS FOR IMPORTING A COUNTRY’S
GOODS...........................................................................................................................3
1.1. The concept and role of importing goods of a country.........................................3
1.1.1. The Concept of importing goods....................................................................3
1.1.2. The role of importing goods...........................................................................3
1.2. Form and content of import of goods of a country...............................................5
1.2.1. Form of import of goods.................................................................................5
1.2.2. Content of import of goods.............................................................................6
1.3. Factors affecting the import of goods by a country..............................................7
1.3.1. Factors from the importing country...............................................................7
1.3.2. Factors from the exporting country................................................................8
CHAPTER 2: ANALYSIS OF THE IMPORT SITUATION OF GOODS IN THE
PERIOD 2015-2023 OF SOUTH KOREA...................................................................10
2.1. Analysis of the import situation of goods in the period of 2015 – 2023 of South
Korea..........................................................................................................................10
2.1.1. General situation in the period of 2015 – 2023............................................10
2.1.3. Import situation by item in the period of 2015 – 2023.................................14
2.2. Assessment of the import situation of goods in the period of 2015 – 2023 of
South Korea...............................................................................................................17
2.2.1. Results...........................................................................................................17
2.2.2. Residual limitations......................................................................................17
CHAPTER 3: IMPLICATIONS FOR VIETNAM.......................................................19
 3.1. Trade and investment relationship of South South Korea and Vietnam.............19
3.1.1. Overview of South South Korea....................................................................19
3.1.2. Trade and investment relationship of South South Korea and Vietnam.......19
3.2. Implications for Vietnam....................................................................................25
CONCLUSION.............................................................................................................28
REFERENCES..............................................................................................................29
 i

DECLARATION
We declare that the study “"Analysis and assessment of the import situation of
goods in the period of 2015 – 2023 of South Korea and implications for Vietnam" is
our own research project. Data and research results in the research are truthful and do
not copy or use results of similar research topics.
We are aware of and understand the university’s policy on plagiarism and
dishonest behaviors in research. We certify that this study is our invention and
itensures the academic honesty and integrity.
We take complete responsibility for this research.
 ii

ACKNOWLEDGMENT
 iii

LIST OF ABBREVIATIONS
No. Abbreviations Full names
1 MOTIE Ministry of Trade, Industry and Energy
2 WTO World Trade Organization
3 IMF International Monetary Fund
4 GDP Gross Domestic Product,
5 FTA Free Trade Agreement
6 FDI Foreign Direct Investment
7 ODA Official Development Assistance
8 CPTPP omprehensive and Progressive Agreement for Trans-
Pacific Partnership
9 APECT Asia-Pacific Economic Cooperation
10 EU European Union
11 ASEM Asia-Europe Meeting
12 P4G Partnering for Green Growth and the Global Goals 2030
13 SEARP Southeast Asia Regional Programme
14 OECD Organisation for Economic Co-operation and
Development
15 VKFTA Vietnam-Korea Free Trade Agreement
 iv

LIST OF FIGURES AND TABLES

Figure 1: Total value of South Korean imports by partner countries in the period.......10
2015 - 2023....................................................................................................................10
Figure 2: Top 10 most importing South Korean countries in 2015...............................11
Figure 3: South Korea's import turnover from the top 8 countries with the highest
proportion in the period of 2015 – 2023........................................................................12
Figure 4: Top 10 most importing South Korean countries in 2023...............................13
Table 1: Top 18 items by HS2 code in the period of 2015 – 2021 South Korea imports
.......................................................................................................................................14
Figure 5: Growth rate of commodities in the period of 2015 – 2021 South Korea
imports...........................................................................................................................17
Table 2: Export – import turnover of goods of Vietnam – South Korea (2015-2022). .20
Figure 6: Direct investment from South Korea in Vietnam in the period of 2015 – 2021
.......................................................................................................................................22
Figure 7: South Korean ODA Institute for Vietnam......................................................24
 1

INTRODUCTION
1. Research rationale
From the sixteenth to eighteenth centuries, the mercantilist view was considered
the beginning in the study of international trade. Adam Smith in 1776, David Ricardo
in 1817, Haberler in 1936 all argued that international trade was effective for both
exporting and importing countries through their studies. On this basis, the arguments
of mercantilist authors are still valid today. For example, when domestic production
capacity exceeds demand, then encouraging exports is something that a country needs
to pursue (Nguyen Thuong Lang, 2019). In the current context of globalization,
besides exports, imports of goods also contribute an important part of the national
economic development strategy and are also manifestations of interaction and
interdependence between countries in the world. Imports help increase the source of
goods to meet the needs of domestic customers. Not only that, they also help goods
circulate smoothly inside many different countries.
South Korea, a country with a thriving economy and gradually becoming an
important trade center in Asia, has shown significant changes in its import policy and
direction over the past decades. According to South Korea's Ministry of Trade,
Industry and Energy (MOTIE), the total value of South Korea's imports in 2023 has
reached record levels, with a significant increase in imports of high-tech and consumer
goods. This shows the trend of diversifying supply sources and improving the quality
of imported goods of South Korea. Notably, a World Bank report (2023) has shown
that South Korea is not only focusing on importing from traditional markets such as
the US and EU but also expanding trade relations with developing countries, including
Vietnam. This not only reflects South Korea's adaptation to global challenges but also
provides important implications for other countries, especially Vietnam, in shaping and
adjusting their export policies.
The strong growth of trade relations between South Korea and Vietnam has been
reflected in the significant increase in the value of South Korean imports from
Vietnam. According to data from the General Department of Vietnam Customs (2023),
goods exported from Vietnam to South Korea have risen to new highs, with
outstanding growth in industries such as electronics, textiles and food. This not only
reflects the shift in the international trade structure but also opens up opportunities and
challenges for Vietnam in adjusting policies and improving production capacity.
For the above reasons, I decided to choose the topic "Analysis and assessment
of the import situation of goods in the period of 2015 – 2023 of South Korea and
implications for Vietnam" as my research topic.
 2

2. Research structure
The structure of the topic consists of 3 chapters:
Chapter 1: The Theoretical Basis for Importing a Country's Goods
Chapter 2: Analysis of the import situation of goods in the period of 2015 – 2023
of South Korea
Chapter 3: Implications for Vietnam
 3

CHAPTER 1: THE THEORETICAL BASIS FOR IMPORTING A

COUNTRY’S GOODS
1.1. The concept and role of importing goods of a country
1.1.1. The Concept of importing goods
According to the International Economics textbook of the National Economics
University: "Export of goods is the sending of goods outside a country (from one
country to another) for sale on the basis of using money as a means of payment in
exchange for another good of equal value. In other words, the export of goods is the
sale of goods abroad in order to increase the use value and value of the goods."
According to the WTO's definition, "export is the process of selling goods or
services from one country to another, which may include selling to an end customer or
to an intermediary importer."
According to the provisions of Clause 1, Article 28 of the 2005 Commercial Law
on import and export of goods, "export of goods is defined as the fact that goods are
taken out of the territory of Vietnam or brought into a special area located on the
territory of Vietnam which is considered a separate customs area in accordance with
law."
From the concept of exports we can give the concept of importation of goods as
follows: Import of goods is understood as the purchase or transfer of goods from one
country or economic region to another. These imports can include everything from raw
materials, components to finished products, and getting goods outside a country may
include selling to an end customer or to an intermediate importer. Money as a means
of payment in exchange for another good of equal value.
1.1.2. The role of importing goods
1.1.2.1. Accelerating economic restructuring
Currently, economic restructuring in line with the development trend of the world
is objectively inevitable. Imports are not merely commercial activities but a strategic
tool to accelerate industrialization and modernization. Imports help improve domestic
production efficiency by supplying advanced raw materials, components and
technologies from abroad into the production process. Access to these resources allows
domestic businesses to increase productivity and product quality. Besides, imports
from abroad have expanded the choice of consumers, thereby creating a diversity of
goods. The diversity of foreign and domestic goods has increased competitive
pressure, forcing domestic enterprises to constantly improve and innovate
1.1.2.2. Timely supplementation of domestic needs
 4

In the context of globalization, when domestic production cannot meet or fail to

produce certain goods, imports become an important solution to provide necessary
products and services to consumers and businesses. This fact is especially important in
sectors where the country has limited resources or technology, such as modern
machinery, information technology, or medical equipment. The import of these
products not only enhances efficiency in production, healthcare, education, but also
contributes to improving the quality of life of the population.
In addition, imports also help stabilize the market during periods of scarcity of
goods due to factors such as natural disasters, market fluctuations, or changes in
economic policy. The supply of goods from overseas markets helps prevent shortages
and alleviates pressure on prices, thereby protecting consumers from adverse
fluctuations. Besides, importing is also a way to diversify markets, giving consumers
more choices. This diversity not only creates healthy competition between domestic
and foreign manufacturers, but also motivates domestic enterprises to constantly
innovate and improve to meet the increasing demand of the market.
1.1.2.3. Improvement and enhancement of the quality of goods
By opening the market to foreign goods, imports bring a diversity and variety of
products, thereby providing more choices for consumers. Imported products often
include consumer goods, new technologies, modern home appliances, electronics, and
even food and pharmaceuticals. This abundance not only meets the diverse needs of
the population but also contributes to improving the quality of life.
Imports also promote competition, making the domestic market more exciting.
This competition not only helps reduce prices but also boosts product quality. When
domestic enterprises have to compete with imported products, they are forced to
innovate, upgrade technology and improve production processes to meet the needs of
consumers in the best way. In addition, imports help improve access to high-quality
products and services from around the world, especially those that are not available or
scarce in the country. This is especially important for developing nations, where
production and technological capabilities may not yet meet the needs of their
populations.
1.1.2.4. Promote bilateral and multilateral economic relations, contributing to
enhancing the country's position in the international market
Importing goods will contribute to promoting the development of a wide range of
international service activities in other fields such as international investment,
international transport, insurance, international payment, technology transfer,... It is
the development of these activities that affects imports and makes import activities
 5

more and more expansive. Besides, when other importing countries see goods of good
quality and high reliability, they will trust and desire to cooperate with that country.
This creates even more cohesive partnerships between countries and helps the
exporting country expand its economic partnerships globally and gain an important
position in the international arena.
1.1.2.5. Help improve effective economic policies and management mechanisms
To be able to import goods to many markets, many countries, and enjoy many
incentives from tariffs from free trade agreements. When participating in the
international market, the importing country must accept the general rules of the game.
And to be consistent with commitments in trade agreements, a country's international
organization will need to create a legal environment open enough for trade to flourish,
and improve its legal system accordingly. That motivates countries to improve
management mechanisms and economic policies in a more effective and
internationally relevant way.
1.2. Form and content of import of goods of a country
1.2.1. Form of import of goods
1.2.1.1. Direct import
It is a form of import made directly between the seller and the buyer. The two
parties may contact each other directly by meeting, sending letters or telegrams to
agree on prices, payment conditions and other conditions. Here, the seller exports
goods and services produced by the enterprise itself or purchased from domestic
production units.
This form has the advantage of helping exporters and importers save intermediary
costs. Help importers make direct requests and avoid risks in the process of purchasing
goods due to direct transactions and can promptly offer immediate solutions.
1.2.1.2. Indirect import
Indirect import, also known as intermediary import, is a form of importing goods
from abroad through a third party intermediary and this intermediary will be entitled to
a commission. These third parties will usually be agents or brokers.
For businesses that do not have experience in buying goods directly or are new to
the market, the use of brokers with a lot of information and experience in buying
copies in certain markets will be a way to reduce risks, less liability, reduce
procedures.
The disadvantage of this form is that the commission must be shared with the
intermediary. In addition, because businesses do not work directly with partners, they
do not need to adjust when necessary. This will make it difficult for businesses to react
 6

to situations that arise that need to change the specifications of goods or even delivery
times from there, reducing the competitiveness of enterprises.
1.2.1.3. Machining order
Processing is a form of import in which one party (called the processee) imports
raw materials, or semi-finished products of the processee to process finished products.
After that, the processee will pay the wage after receiving the goods from the
processor.
Outsourcing helps promote specialization on a global scale. Outsourcing
enterprises will learn more international experience, and at the same time have access
to advanced equipment and technology. In addition, outsourcing also creates more jobs
for people.
However, the remuneration received from outsourcing activities is not high. In
addition, differences in cultures also lead to cultural clashes among international
employers. The outsourcing party always wants to fully exploit labor power, so it
applies many strong industrial labor management methods, sometimes it can be labor
exploitation.
1.2.2. Content of import of goods
1.2.2.1. Complete the system of regulations and laws related to the import of goods
The system of regulations and legislation related to the import of goods of a
country is one of the extremely important issues aimed at improving efficiency and
ensuring legality in the import process. The system of regulations and laws always
tends to be constantly updated and regulations must also be increasingly in sync with
international standards. The process of synchronization and standardization with the
international legal system as well as having legal systems suitable for the host country
will facilitate businesses to easily grasp and comply, minimizing risks and
misunderstandings. At the same time, it also helps protect young domestic
manufacturing industries facing the risk of fierce competition from imported goods.
Currently, a number of legal regulations related to the import of goods can be
mentioned as: Imported products must have certificates of origin, regulations on food
hygiene and safety, regulations on labeling and consumer protection, regulations on
intellectual property rights and other regulations on customs clearance... For the
purpose of consumer protection, preventing counterfeit goods. Thereby ensuring
harmony and efficiency in import management of goods
1.2.2.2. Promote the process of international economic integration, take advantage of
incentives from FTAs
 7

Through the process of economic integration, countries increasingly participate

in many bilateral and multilateral free trade agreements. Countries covered by the
agreement must make commitments to reduce or eliminate tariff or non-tariff barriers.
From there, goods will be circulated with certain competitive advantages. Taking
advantage of incentives from FTA commitments has a positive impact, on the one
hand, this process helps consumers have access to better quality goods at cheaper
prices. On the other hand, from the trade and exchange between countries to make
relations between countries become good, this is a stepping stone for the development
of international relations and international cooperation opportunities in the future
In addition, in the national economic development strategy, the improvement of
the efficiency of international economic integration is always translated into concrete
results in the growth of import and export of goods. From the import of equipment, the
country has helped establish a higher position in the global value chain, narrowing the
development gap compared to more developed countries in the region and the world.
1.2.2.3. Develop strategies for importing goods to meet domestic demand
Considered a part of a country's import and export strategy. The commodity
import strategy is a synthesis of general orientations and objectives for import
activities. From the strategies developed by the country, new authorities and
businesses have specific measures suitable for each place. Decisions on the orientation
of appropriate imported products and ensuring domestic supply. In addition to
ensuring domestic supply, the issue of protection of domestic production industries is
an extremely important content that countries are concerned about. These policies help
manage risks, including market risks, price fluctuations in the face of ongoing
geopolitical issues that increasingly pose food or gas security risks.
1.3. Factors affecting the import of goods by a country
1.3.1. Factors from the importing country
1.3.1.1. Economic development situation of the importing country
Consumer demand, product consumption and import capacity are determined by
the economic situation of the importing country. Countries with strong economic
growth and development will create many opportunities in promoting import and
export activities, while countries in difficult economic times will not be able to
maintain trade activities as usual, reducing import and export activities. To understand
the economic development of importing countries, businesses will look at macro
indicators such as gross domestic product, growth of industries, agriculture, services,
per capita income, economic structure, import and export value, etc the situation of
FDI attraction, inflation, exchange rate, interest rate, population growth,..
 8

1.3.1.2. Import demand and policy of the importing country

The importing country's demand for imports is also important for the exporting
country's export promotion activities. When the demand for a commodity increases,
the local responsiveness of domestic producers will not be enough to meet the
domestic market demand, which in turn will promote the participation of foreign
manufacturers and suppliers in this market. With the trend of globalization and
international economic integration, import needs aimed at serving production and
consumption are no longer local, but increasingly spread internationally.
The importing country's import policy is also an important factor that has a great
influence on the exporting country's export promotion. Different import policies for
each type of goods vary from country to country. The import policies of each country
often use tools: rental measures such as anti-dumping duties, import duties,... or non-
tariff tools such as: system of quality standards, customs procedures,..
With the trend of globalization in recent times, many tariff barriers have
gradually been removed, but in some countries, taxes are still a tool to limit imports
and protect domestic production. Some markets such as the US, Japan, EU, Australia
and New Zealand have used non-tariff barriers as standards to control quality as well
as regulations on import risk quarantine and import restrictions,.... For these markets,
enterprises need to understand the regulations on legal procedures, customs as well as
the system of product quality standards to be applicable to exported goods.
1.3.2. Factors from the exporting country
1.3.2.1. Awareness of leaders in planning and implementing export promotion policies
Leaders of the Party, State, Government and leaders of ministries/branches as
well as State management agencies in the field of import and export trade, leaders of
localities (depending on the political characteristics of each country) need to take the
initiative in planning and implementing policies to promote exports. In addition,
leaders of ministries/branches and localities need to participate directly in the
formulation and promulgation of export promotion policies, implementation of export
promotion policies, supervision and adjustment of the implementation of export
promotion policies. It is the awareness of the importance of export promotion policies
from leaders that is a key factor determining the introduction and quality of export-
promoting policies and the effectiveness of the implementation of these export-
promoting policies.
1.3.2.2. Potentials and advantages in production and export
A country with a developed economy, abundant resources in all aspects such as
capital, science, technology, infrastructure, human resources and a large and thriving
 9

domestic market will have advantages in developing trade relations with other
countries. Economic development has created a large supply of high-quality goods and
services for export and ensured high competitiveness compared to imported goods.
Developed markets also build and manage regional/global supply chains/value chains,
participate in direct and indirect investment abroad and are central to international
trade flows.
Each country has certain advantages in terms of products produced and exported
depending on development and natural characteristics such as geographical location,
climate ... These characteristics will affect the productivity and quality of the product
and also bring comparative advantages and unique characteristics to each product,
thereby showing the image and brand characteristics for each region and locality of
production. Since then, ministries, departments and the State will make development
decisions to support the development of products and goods with potential and strong
advantages. At the same time, these characteristics and advantages are also a solid
basis for building long-term development orientations and plans to produce goods for
export needs.
1.3.2.3. Competitiveness of exporting country enterprises
The competitiveness of exporting country enterprises is also a key factor
affecting import and export activities. Enterprises are the most important entities for
goods import and export activities. No matter how well the policy is planned and
implemented, if enterprises do not have competitiveness, they cannot improve the
situation of import and export or trade structure. The competitiveness of an enterprise
is constituted by 2 main factors: the capacity of the enterprise and available
advantages, including basic factors such as finance, human resources, scientific and
technical level, management capacity. Normally, enterprises of low-level developed
countries often focus on simple production of goods, relying heavily on natural
resources, cheap labor due to poor competitiveness. These businesses will not be able
to participate in highly profitable activities of the supply chain, but mainly participate
in processing stages. Since then, the export activities of these enterprises have also
mainly focused on exporting raw goods with little added value; the ability to meet
import standards and conditions is low.
 10

CHAPTER 2: ANALYSIS OF THE IMPORT SITUATION OF GOODS IN

THE PERIOD 2015-2023 OF SOUTH KOREA
2.1. Analysis of the import situation of goods in the period of 2015 – 2023 of South
Korea
2.1.1. General situation in the period of 2015 – 2023
In the context of globalization and the changing world economy, South Korea is
increasingly proving its economy's ability to adapt to changes. The strong growth in
imports of goods from countries around the world is an important factor in maintaining
economic stability and development in the long term. From there, take advantage of
opportunities to expand trade partnerships, improve supply chains and drive
innovation through exports.
Between 2015 and 2023, South Korea has generally experienced growth in
imports of goods from countries around the world. This growth has reflected the
development of the domestic economy and demonstrates South Korea's need to
diversify its supply from international markets ranging from food, agricultural
products, to technological products and industrial raw materials.
Unit: Million USD
 11

800,000
731,369
700,000
615,093
600,000
589,128
478,478 503,342
500,000 535,202
436,498
467,632
400,000
406,192
300,000

200,000

100,000

0
2015 2016 2017 2018 2019 2020 2021 2022 2023

Figure 1: Total value of South Korean imports by partner countries in the period
2015 - 2023
Source:Kotra, 2015-2023
Before the Covid 19 period, in 2015, the value of imported South Korean goods
reached 436.5 billion USD. However, from 2015 to 2020, the value of imported South
Korean goods grew unevenly, peaking in 2018 with an import value of 535 billion
USD then decreasing in 2020 to 468 billion USD due to the disruption of the global
supply chain.
After the Covid 19 pandemic, South Korea has witnessed strong growth in the
total value of imports, from nearly $468 billion in 2020 to $731 billion in 2022, an
increase of $263 billion. This growth comes as little surprise as the International
Monetary Fund (IMF) has predicted South Korea's nominal GDP with an estimate of
$1.82 trillion in 2021 and $1.91 trillion in 2022. This not only reflects South Korea's
economic strength but also its position on the global economic map (Van Tuan, 2020).
The main trends in South Korea's import process are to focus on high-tech
products such as phones, auto components, complete cars, etc. due to export abroad for
processing and raw materials for industries such as petroleum, iron and steel.
2.1.2. Import situation by partners in the period of 2015 – 2023
With the motto of always finding solutions to adapt to changes in the economy
and trade policies of partner countries. South Korea has had many changes in import
turnover with each trading partner. However, this change does not change too much
 12

the strategic position of the main partners in the top 10 partners that South Korea
imports the most.
Unit: Million USD

Figure 2: Top 10 most importing South Korean countries in 2015

Source:Kotra, 2015-2023
By the end of 2015, 10 countries, namely China, Japan, USA, Germany, Saudi
Arabia, Taiwan, Catarrh, Australia, Russian Federation, Vietnam accounted for the
largest proportion (66.7%) of South Korea's import turnover. The import value of these
10 countries reached 291,326 million USD. In particular, China is the country that
South Korea imports the most with nearly twice the value of Japan and 9 times more
than Vietnam, showing the importance of China in the trade relations of these two
countries.
Unit: Million USD
 13

170,000

150,000

130,000

110,000

90,000

70,000

50,000

30,000

10,000
2015 2016 2017 2018 2019 2020 2021 2022 2023
CHINA 90250 86980 97860 106488 107228 108884 138628 154576 131933
JAPAN 45853 47466 55124 54603 47580 46023 54642 54711 43734
USA 44024 43215 50749 58868 61878 57492 73213 81784 64793
GERMANY 20956 18917 19748 20853 19936 20680 21996 23614 21688
SAUDI ARA- 19561 15741 19590 26335 21840 15979 24271 41640 29760
BIA
TAIWAN 16653 15741 18072 16738 15717 17837 23485 28274 22430
VIETNAM 9804 12495 16176 19643 21071 20578 23965 26724 23832
AUSTRALIA 16437 15175 19159 20718 20608 18707 32917 44929 29764

Figure 3: South Korea's import turnover from the top 8 countries with the
highest proportion in the period of 2015 – 2023
Source:Kotra, 2015-2023
During this period, China was seen as South Korea's largest importer due to
South Korea's growing demand for electronics, manufacturing components and
essential raw materials for key industries such as automobiles and technology. In
addition, demands for high-precision machinery and equipment, advanced technology
and chemical products have made Japan the second most important partner. However,
ongoing political and trade tensions between South Korea and Japan have led to a
decline in 2023.
Taking advantage of many incentives from the strong trade relationship and
strengthened by the U.S.-South Korea Free Trade Agreement (KORUS FTA), which
has accelerated major imports of crude oil, open oil, machinery and agricultural
products from the US. The explanation for the severe decline in 2023 may come from
the reactions to the global energy crisis caused by the Russia-Ukraine war that has
changed energy prices. The same goes for Saudi oil imports.
Considered a powerhouse in automobile manufacturing with famous automakers
such as Toyota Hyndai... Therefore, the import of German engineering, automotive
 14

and high-tech products is understandable. In the trend of using clean energy in the
world today, many companies around the world have transformed from producing
gasoline cars to electric cars. However, some South Korean firms have yet to
transform and make automobile consumption slow and, therefore, reduce imports of
these equipment in 2022 and 2023.

Figure 4: Top 10 most importing South Korean countries in 2023

Source:Kotra 2023
Besides the above countries, Taiwan is also one of South Korea's major suppliers
of semiconductors and electronic components. Vietnam in recent years has also
discovered many rare earth deposits. This is the foundation for exporting to South
Korea because South Korean MNCs are located and chip factories in Vietnam. In
addition, Vietnam is also an important trading partner of South Korea in products such
as textiles, footwear and agricultural products. The increase in imports of these
products by Vietnam is due to the country's competitive advantage in price and
promoted by the Vietnam-South Korea Free Trade Agreement
Ranking in last place is Australia, with many natural resources, especially
minerals and coal. These are considered very important for South Korea's heavy
industry.
In general, South Korea's import turnover during this period still tended to
increase and constantly strengthened cooperation with partners and actively diversified
its supply. All partners saw their imports peak in 2022 on signs of a post-pandemic
economic recovery, in which South Korean industries are ramping up production to
meet new global demand. The sharp decline in 2023 is a harbinger of demand stability
and a change in supply strategy as global trade momentum continues to gain
momentum
 15

2.1.3. Import situation by item in the period of 2015 – 2023

In 2021, South Korea was the world's largest importer of Inorganic Salt ($1.06B),
Nitrile Compound ($793M), Molybdenum Ore ($743M), Starch Residue ($562M) and
Fur Clothing ($287M), The top imports of South Korea are Crude Petroleum ($60.6B),
Integrated Circuits ($47.4B), Petroleum Gas ($24.5B), Refined Petroleum ($24.3B)
and Photo Laboratory Equipment ($16.6B)...
In the period of 2015 – 2021, leading South Korea's import turnover is the
Electrical machinery and electronics, with an import value of 566,469 million USD.
South Korea, is globally renowned for its advanced consumer electronics,
semiconductors and telecommunications equipment. That underscores the country's
position in global supply chains, where it often adds value through complex
manufacturing processes before exporting finished products. The high import value
also indicates the need for specialized components that are critical to South Korea's
technological innovation and manufacturing, often sourced from leading technology
nations to ensure quality and performance.
The import value ranked second is Mineral fuels, mineral oils and products of
their distillation from them amounted to 750,965 million USD, the highest of all
categories. As a country with limited natural resources, South Korea's reliance on
energy imports is strategic to power its expanding industrial economy. These imports
are important not only for the operation of factories but also for domestic
transportation and energy needs. The high import value demonstrates South Korea's
continued need to ensure stable and diversified energy supplies from the global
market, reflecting volatile oil prices and the push for global energy diversification.
Table 1: Top 18 items by HS2 code in the period of 2015 – 2021 South Korea
imports
Unit: Million USD
STT NAME IMPORT
VALUE
1 Electrical machinery and electronics 566.469
2 Mineral fuels, mineral oils and products of their distillation 750.965
3 Machinery, mechanical appliances, & parts 305.153
4 Optical, photo, & film equipment; medical instruments 199.896
5 Cars, tractors, trucks & parts thereof. 114.014
6 Ores, slag and ash 105.842
7 Iron & steel 105.338
8 Organic chemicals 91.713
 16

9 Plastics & articles thereof 76.431

10 Chemical products n.e.s. 49.823
11 Inorganic chemicals 48.503
12 Aluminum articles 44.403
13 Copper articles 43.928
14 Pharmaceutical products 43.560
15 Non-knitted clothing accesories 42.688
16 Iron or steel articles 40.390
17 Meat & edible offal 33.682
18 Fish, crustaceans, & molluscs 33.195
Source: OEC, 2023
Machinery, mechanical appliances, & parts, with an import value of US$305,153
million, South Korea is interested in continuously upgrading industrial infrastructure.
Imported machinery and parts serve many sectors, from automotive to agriculture,
signaling continued investment in maintaining the efficiency and competitiveness of
industries. The large import value of this commodity is part of South Korea's
commitment to leveraging advanced machinery to improve productivity and
innovation.
Optical, photo, & film equipment; medical instruments, with an import value of
US$199,896 million, dual focus on the quality of healthcare and cultural products of
the country. High-end medical devices, optical devices, and investments in the public
health sector, in line with South Korea's reputation for high healthcare standards.
Moreover, the import of cinematography and photographic equipment partly reflects
the development of the media and entertainment industry, the main driver of the 'South
Korean Wave' which has significantly influenced the Asian cultural scene.
Imports of Cars, tractors, trucks & parts thereof stood at US$114,014 million,
although South Korea is a well-known automaker, the demand for foreign automobile
brands and luxury vehicles is still huge. In addition, it helps to point out the global
nature of the automotive industry, where it is normal to source components from
different countries. This figure implies a market for imported vehicles that
complements domestic products and demand for specific parts that are perhaps
produced more efficiently elsewhere.
Ore, Slag and Ash with an import value of $105,842 million and Iron & Steel at
$105,338 million, the story of South Korea's burgeoning heavy industry and
infrastructure development. These raw materials are integral to steelmaking, an
 17

industry that supports many downstream industries, including construction and

manufacturing. Nearly identical import values indicate stable demand for these basic
industrial inputs.
Organic chemicals, with an import value of $91.713 million, are among the raw
materials needed for the pharmaceutical and plastics industries, two key sectors in
modern manufacturing and healthcare. This significant import value suggests that
production processes require specialized organic compounds, which are likely not to
be available domestically at the required scale or specificity.
Plastics & articles thereof, with an import value of $76.431 million, we see the
actual side of South Korea's import demand. Plastics play an important role in many
applications, from packaging to components in the consumer electronics and
automotive industries. South Korea's reliance on imported plastics underscores the
versatility of these materials and the need for stable supply for the country's production
output as well as consumer market requirements.
Chemical products n.e.s., with an import value of $49.823 million, and Inorganic
Chemicals, valued at $48.503 million, demonstrate the diversity of the chemical
industry and its support for many other sectors. These chemicals serve as reagents,
catalysts, and additives in processes ranging from water treatment to agriculture,
demonstrating South Korea's extensive industrial activities and the complex network
of suppliers supplying them with fuel.

Figure 5: Growth rate of commodities in the period of 2015 – 2021 South Korea
imports
Source: OEC, 2023
 18

2.2. Assessment of the import situation of goods in the period of 2015 – 2023 of
South Korea
2.2.1. Results
Regarding South Korea's import turnover, although this period witnessed the
outbreak of the disease, South Korea still recorded strong growth in import turnover.
This growth is due to the entry into force of the CPTPP (Comprehensive and
Progressive Agreement for Trans-Pacific Partnership). Specifically, South Korea's
import turnover has increased from $436.5 billion in 2015 to $589 billion in 2023.
This marks a significant leap, with 2022's growth reaching 67.5% compared to 2015.
Moreover, in 2023, import turnover will continue to increase by 35% compared to the
figure of 2015.
In terms of import markets, import partners are increasingly expanding with the
import of goods of many countries around the world. This is reflected in the
importation of goods from many countries that are not limited to developed countries
such as the United States and the European Union (EU), but also include developing
countries in Asia and Africa. This diversification of import supplies has helped South
Korea ensure a stable supply of domestic production. Connecting with many different
countries and regions not only gives South Korea the opportunity to access a variety of
products and raw materials but also minimizes the risk of dependence on a single
market.
In terms of the structure of imported items, South Korean imports are
increasingly diversified. Don't just focus on some traditional items like high-tech
machinery and equipment. South Korea also continues to expand into a number of
other industries such as food, consumer goods (clothing, household appliances and
electronics) and raw materials (oil, minerals and metals)
2.2.2. Residual limitations
In addition to the results achieved in South Korea's import turnover, there are still
certain limitations and backlogs:
Firstly, in South Korea's import turnover there is a large dependence on imported
raw materials and energy, especially oil and gas from countries in the Middle East.
This dependence has created price and supply risks, especially amid volatility in global
energy markets.
Secondly, it has developed trade and investment relationships with many
countries. However, for some specific countries such as Japan, China... South Korea is
facing a trade deficit because imports of goods are much larger than the value of goods
 19

exported. From there, putting pressure on the balance of international payments and
South Korea's economy in general.
Thirdly, although the benefit from importing goods is to diversify supplies for
domestic production and consumption. However, this process has also created great
competition for domestic businesses especially in the consumer and retail sectors.
Since then, it has had a huge impact on South Korea's manufacturing industry related
to these sectors
Fourthly, because Japan is one of the major partners in South Korea's import
turnover. In recent years, the yen's exchange rate fluctuations have been unstable,
leading to the import of goods that can increase costs, seriously affecting the profits of
businesses
 20

CHAPTER 3: IMPLICATIONS FOR VIETNAM

3.1. Trade and investment relationship of South South Korea and Vietnam
3.1.1. Overview of South South Korea
3.1.1.1. Geographical location
The Republic of South Korea is located in East Asia, on the southern half of the
South Korean peninsula, east of Asia. The only country with a land border with South
South Korea is North South Korea, located in the north with a 238-kilometre (148 mi)
border running along the South Korean Demilitarized Zone. South Korea is mainly
surrounded by the sea and has 2,413 kilometres (1,499 mi) of coastline along three
seas; on the west is the Yellow Sea (West Sea), on the south is the East China Sea, and
on the east is the Sea of Japan (known as the "East Sea" in South Korea).
Geographically, South South Korea's land area is about 100,032 square kilometers
(38,623 square miles). South South Korea's 290 square kilometres (110 sq mi) is
encroached upon by seawater. The approximate coordinates are 37°N and 128°East.
3.1.1.2. Economy
South Korea is a country with a market economy, in which the role of the State
economy plays an important role. South South Korea is a country poor in natural
resources, with a narrow domestic market, but has industrialized very successfully.
Three decades ago, GDP per capita was on par with that of poor countries in Africa
and Asia. Today, South South Korea's GDP per capita is 7 times that of India, 13 times
that of the Democratic People's Republic of South Korea, and is already close to that
of the low economies of the European Union. Currently, South South Korea's GDP per
capita ranks 2nd in Asia (after Japan). South Korea's economic success is known as the
"Miracle of the Han River." Since the 1970s of the twentieth century, many large
South Korean companies began to create a foothold in the world market, among them
Samsung, Hyundai or GM Daewoo ...
3.1.2. Trade and investment relationship of South South Korea and Vietnam
3.1.2.1. Overview of South Korea-Vietnam trade relations
From announcing the upgrade of relations from a Comprehensive Partnership in
the XXI Century (2001) to a "Strategic Cooperation Partnership" (2009). The
upgrading of relations has opened up Vietnam-South Korea economic relations to a
new stage of development. Not only within the bilateral framework, close coordination
in international and regional forums and mechanisms that the two sides participate in
will also be strongly promoted such as at the United Nations, World Trade
Organization (WTO), Asia-Pacific Economic Cooperation (APEC), etc ASEAN-South
Korea cooperation mechanism, Mekong-South Korea, Asia-Europe Cooperation
 21

Forum (ASEM), Partnership for Green Growth and Global Goals 2030 (P4G) summit,
Southeast Asia Regional Program (SEARP) and Organization for Economic Co-
operation and Development (OECD).
Table 2: Export – import turnover of goods of Vietnam – South Korea (2015-
2022)
Unit: USD Billion
2015 2017 2019 2021 2022
Export 8,5 14,8 19,7 21,97 24,298
Import 27,6 46,9 47,1 56,739 62,091
Total exchange value 36,1 61,7 66,8 78,63 86,38
Source: General Statistics Office, 2015 – 2022
Since upgrading relations, Vietnam – South Korea continues to sign the Vietnam
–South Korea Free Trade Agreement (VKFTA) in 2015, creating favorable conditions
for trade exchanges between the two countries. Import and export turnover with the
South Korean market in 2017 also has certain advantages since the VKFTA agreement
came into effect in December 2015. These tax exemption and reduction incentives are
even more widely utilized by businesses. According to the General Statistics Office of
Vietnam, after 02 years since the VKFTA came into effect, the total value of goods
exchange between the two countries began to "escalate", up 58.5% compared to
before, reaching the value of 36.1 billion USD (2015), 61.8 billion USD (2017).
Considering 03 years affected by the Covid 19 epidemic, many views say that all
industries are affected, especially people's consumer life is somewhat reduced.
However, actual figures have shown that the total value of goods exchange between
the two sides is not too different. In 2020, the total exchange value of import and
export turnover of goods reached 66 billion USD (Ministry of Industry and Trade,
2021), down only 1.1.1% compared to 2019 but up 0.3% compared to 2018 (65.8
billion USD). Also during the epidemic, 2021 has a breakthrough in the trade relations
of the two countries compared to previous years. In 2021, Vietnam's total import-
export turnover with South South Korea reached 78.63 billion USD, up 19.1%
compared to 2020. In particular, Vietnam's import-export turnover to South Korea
reached 21.9 billion USD, up 14.7% compared to 2020. Vietnam's exports to South
South Korea account for 6.5% of Vietnam's total exports to the world (Ministry of
Industry and Trade, 2021, p.92).
In 2022, when the COVID-19 epidemic situation is controlled, creating favorable
conditions for trade promotion between the two sides, achieving the expected figures:
Export turnover reached 24.29 billion USD (2022), up 10.9% compared to 2021;
 22

imports reached 62.09 billion USD, up 9.4% over the previous year. As a result, the
total exchange value increased by 9.9% compared to the epidemic year. Although the
growth rate of trade value between the two countries tends to increase over the years
from 2009-2022, the trade balance is unfavorable for the Vietnamese market.
Vietnam's trade deficit from South Korea has increased quite high over the years and
has become an alarming phenomenon. It can be seen that in 2009, the trade deficit was
only as low as -4.6 billion USD, but from 2017 onwards the deficit is even larger. In
2020, Vietnam's trade deficit from South South Korea was worth US$27.8 billion, up
1.8% compared to 2019. At its peak in 2022, the province reached $37.8 billion, up
8.5% from 2021. Yes, Vietnamese businesses are quite passive before the VKFTA
Agreement, while South Korean businesses and corporations make better use of the
agreement than Vietnam.
3.1.2.2. Overview of South Korea-Vietnam investment relations
a, FDI
Due to the impact of the financial recession, the global economy, foreign
investment capital and foreign investment projects in Vietnam were sharply reduced.
Not out of that general trend, South Korean direct investment (FDI) in Vietnam not
only in 2009 and 2010 but also in 2011 and 2012 decreased to only 1.54 billion USD
(down 40% compared to 2010) with 288 projects and 1.28 billion USD (down 17%
compared to 2011) with 277 projects. But by 2013 there was a recovery. It can be seen
that the investment capital increased by 248% compared to 2012 with 427 projects
(General Statistics Office, 2014). This breakthrough investment continued to yield to
the next year, as of 2014, among 60 countries and territories with investment projects
in Vietnam, South Korea is still the leading partner with a total newly registered
investment capital and an additional capital of 7.7 billion USD, accounting for 39.4%
(Hai Chau, 2014) of total investment capital in Vietnam, up 72% compared to 2013.
According to the Department of Statistics, in 2015 and 2016, FDI investment from
South Korea into Vietnam somewhat slowed down compared to 2014, down 9.4%
(2015), down 9.1% (2016). However, South Korea still stands firmly as the No. 1
investor in Vietnam, bringing the total FDI from this country to Vietnam to over 45.19
billion USD with 4,970 projects (2015) (General Statistics Office, 2016, p.235),
whether during the year or cumulatively. As of 2017, there are 115 countries and
territories with investment projects in Vietnam with a cumulative investment capital of
57.86 billion USD with 6,549 projects (General Statistics Office, 2018, p.247). In 2017
alone, South Korean FDI entered Vietnam with a capital of US$8.72 billion,
accounting for 23% of the total direct capital from 115 countries. Despite the
 23

outstanding capital, this year, South Korea is still the second investor after Japan (with
a capital of 9.2 billion USD).
However, in 2018 and 2019, capital registration somewhat decreased, down 15%
(2018), down 4.2% (2019). This figure is nothing compared to 2020, under the impact
of the Covid-19 epidemic, the amount of registered FDI of South Korea decreased
significantly during the year. The investment capital in 2020 decreased sharply to 4.21
billion USD, down 49.53% over the previous year. The pandemic has affected many
sectors, industries, and every country, seriously affecting business activities globally.
10.00
9.00
8.70
8.00 8.34
7.68
7.00 7.32
6.98 7.00
6.00
5.00
4.00 4.21
3.00
2.00
1.00
0.00
2015 2016 2017 2018 2019 2020 2021
Figure 6: Direct investment from South Korea in Vietnam in the period of 2015 –
2021
Source: General Statistics Office
Also during the pandemic, the governments of the two countries tried to find
measures to restore the economy and trade, continuing the existing investment.
According to statistics in 2021, the amount of registered South Korean FDI has
recovered, reaching 7.68 billion USD, up 82% compared to the year of the severe
epidemic. As of 2022, South Korea is the largest foreign investment partner in
Vietnam both in terms of registered capital and number of investment projects with
nearly 9,500 projects and more than 80 billion USD. In the first 11 months of 2022,
South Korea continues to invest in Vietnam with more than 370 projects, with a total
investment of more than 4 billion USD (Tung Linh, 2022). In the direction of
investment from Vietnam to South Korea is somewhat more modest, cumulatively by
 24

2019, Vietnam currently has 46 projects invested in South Korea with a modest scale,
with a total investment capital of Vietnamese investors is 35.3 million USD (General
Statistics Office, 2020). The total accumulated capital invested by Vietnam in South
Korea has increased over the years, but this increase is not large, this investment
capital is insignificant with the amount of South Korean capital poured into Vietnam.
The projects are small-scale, mainly in the fields of science and technology, mining,
processing and manufacturing industry
During the post-crisis recovery period, South Korean direct investment in
Vietnam increased rapidly until 2015 as large South Korean companies began to adjust
their investment locations to Vietnam to reduce investment risks and find new growth
directions. After 2015, due to high labor costs in China, enterprises operating in South
Korea's capital-intensive, high-tech product manufacturing industries such as electrical
products, electromagnetic ... Rushing into Vietnam led to an increase in investment in
supporting service industries, while the proportion of the service sector also increased.
In general, the proportion of South Korean investment in Vietnam is quite high,
focusing on the manufacturing sector; The share of investment in the service industry
has been increasing recently. Meanwhile, Vietnam's direct investment in South South
Korea is mainly in manufacturing and service sectors (KWAK Sungil et al., 2021,
p.52).
In the period 2017 onwards, South Korean companies mainly focused on
investing in specific sectors such as the processing industry, manufacturing,
electronics, technology, logistics and construction. In 2017 and earlier, manufacturing
was the leading industry in terms of the highest FDI balance from South Korea, with a
rate of over 70%. However, the share of investment in the manufacturing sector
gradually decreased to 62% in 2018, 57% in 2019 and 61% in 2020.
In recent years, South Korean investment has also expanded into construction,
real estate, distribution, retail, office, hotel, high-tech industry, medical services,
health care, and beauty,... with the emergence of financial corporations such as
Shinhan, KB, Woori ,...). On the other hand, sectors such as construction, real estate,
distribution and retail, finance and insurance have increasingly attracted FDI from
South South Korea in recent years. Although it fell below 4% in 2019, the share of
investment by South Korean investors in the construction and real estate sectors
increased to more than 10% in 2020, reaching approximately 11% (Oh & Mah, 2017)
in the first half of 2021.
Although there is a downward trend in 2018, 2019, 2020, in 2022, the
manufacturing sector is still a sector with concentrated capital of 86% of South Korean
 25

FDI in Vietnam, 4% in science and technology. In the coming time, the investment
priority of South Korean enterprises is still the manufacturing sector - one of the most
developed sectors in Vietnam. At the same time, businesses are also looking towards
investment in energy, information technology, infrastructure and finance (Thao Mien,
2023).
b, ODA

Figure 7: South Korean ODA Institute for Vietnam

Source: KOICA statistics
In 2015, KOICA's aid to Vietnam was nearly 30 million USD with 19 projects
implemented and many other forms of non-project aid (Vietnam – South Korea
Cooperation Overview 2016). South Korea also supports Vietnam to train human
resources through short and long-term training courses; Volunteers to Vietnam;
Provide technical support through Development Experience Sharing Partners. In
addition, KOICA devotes a part of its resources to financial cooperation between the
two countries, such as implementing the Pre-Feasibility Study and Feasibility Study of
Metro Line 5, Phase 2 Project in Ho Chi Minh City (Overview of Vietnam-South
Korea cooperation, 2016).
In 2016, ODA grants to Vietnam accounted for 16% and 5.9% of KOICA's total
budget for the region and the world respectively (KOICA, 2017). In 2018, aid capital
exceeded the highest, reaching 41.8 million USD. an increase of 27% compared to
2017.
In the period of 2016-2020, a number of areas will be prioritized: rural
development, health, infrastructure (transport, urban, water supply and drainage),
climate change response and green growth, energy, state management. In addition,
 26

KOICA will continue to devote a part of its resources to financial cooperation between
the two countries, in the short term technical assistance for urban railway and transport
projects. In 2016 alone, KOICA's total aid budget for Vietnam was more than 32
million USD, of which 22.4 million USD was for 24 projects under implementation.
During this period, Vietnam always ranked as the largest recipient of South Korean
non-refundable ODA in the Asia-Pacific region, accounting for nearly 7.3% of South
Korea's total ODA for the whole region (KOICA, 2022).
3.2. Implications for Vietnam
In recent years, Vietnam-South Korea economic relations have developed
dramatically, reaching "talking numbers" in trade and investment. However, there are
still difficulties that make this relationship face certain barriers. In order to overcome
difficulties and promote existing advantages, the author proposes some solutions to
help Vietnam take advantage of opportunities to increase exports to the South Korean
market at the same time, learn from South Korea's experience in importing goods to
increase supply to the domestic market.
First, for the group of solutions on the state level:
The issue of mechanisms and policies is always a significant barrier to trade and
investment, cumbersome procedures and strict policies make goods imported from the
world market into Vietnam take a long time and stage, thereby easily affecting the
import-export psychology with international enterprises in choosing markets.
Therefore, Vietnam needs to improve the import and export management mechanism:
Improve the management capacity of authorities such as Customs, Ministry of Industry
and Trade; Add clearer regulations on import management in commercial laws to
ensure transparency, fairness and accuracy in commercial transactions, creating a good
image in the control of goods when imported. Complete import tax policy: Gradually
reduce the proportion of import duties in the budget, strengthen the application of
other forms of support such as quotas, absolute duties, anti-dumping duties,... to create
healthy competition in commercial activities.
In order to ensure that enterprises understand and comply with regulations related
to import and export, it is necessary to strengthen propaganda and education on trade
laws, provide market information, support in handling customs procedures, etc. For
example, organizing training sessions for enterprises on regulations, policies and
procedures related to import and export, using media such as television, newspapers,
social networks to disseminate information on import and export laws to enterprises.
In addition, regularly organize seminars and forums for businesses with countries
 27

around the world to have the opportunity to exchange, share experiences and better
understand regulations related to import and export of countries.
In particular, in order to further promote Vietnamese exports to South Korea,
reduce the trade imbalance, Vietnam needs to have incentive policies and incentives
for domestic enterprises with production and export capacity, thereby creating
conditions for enterprises to easily access the South Korean market. One of the
effective solutions such as financial support, the State provides preferential credit
packages with low interest rates or interest rate exemptions to support exporting
enterprises or the government to invest in scientific and technological research and
development, thereby helping to enhance the competitiveness and products of
exporting enterprises
Next, it is necessary to improve the business environment: Increase investment in
infrastructure, improve service quality, create favorable conditions for enterprises in
production, business, import and export. The government may apply preferential tax
policies to projects investing in infrastructure, such as reduced import duties on
materials and equipment, or tax exemptions on investment income. Governments can
provide financial support for projects invested in infrastructure, either by providing
funding, strengthening credit, or providing other support. Moreover, it is necessary to
invest in public infrastructure such as roads, bridges, seaports, airports, information
centers,... will create a favorable business environment.
In order to improve mechanisms, policies and improve the legal environment in
import and export, Vietnam and South Korea need to cooperate in the field of trade
law to innovate and improve management capacity, creating favorable conditions for
enterprises of the two sides when trading transactions, invest in mutual markets. The
two governments act as a bridge to connect business, creating conditions for
Vietnamese enterprises to participate in the production supply chain. South Korean
enterprises enhance technology transfer, build research and development (R&D)
centers in Vietnam to share experiences and knowledge on digital transformation and
corporate governance for Vietnamese enterprises.
Also within the framework of improving management capacity, Vietnam needs
to develop high-quality human resources. Developing high-quality human resources is
one of the important factors in international economic cooperation. In order to meet
the requirements of the market economy, it is necessary to train high-quality human
resources, capable of adapting to the world labor market and having the necessary
skills and knowledge to participate in international economic activities. In the case of
investment, a working group can be established to assist foreign investors in dealing
 28

with cumbersome procedures and processes under Vietnamese law. Enhance the
promotion of Vietnamese brands: The State can promote Vietnamese brands in South
Korea by organizing exhibition events, product introductions, trade promotion, cultural
and tourism promotion to introduce the country's image and Vietnamese products.
Second, for the solution team on the enterprise level
On the side of Vietnamese enterprises, enterprises need to ensure and improve
product quality to meet the requirements of the South Korean market. This is the most
important factor that businesses need to focus on because the South Korean market is a
market with very high standards of product quality. In addition, enterprises need to
fully implement procedures and processes related to exporting to South Korea, such as
procedures and procedures for origin certification, product inspection, packaging and
transportation. This ensures the ability of the company's products to be accepted into
the South Korean market.
Next, enterprises need to improve production and management capacity, invest in
technology and production equipment to improve product quality and reduce
production costs. At the same time, enterprises need to have high-quality human
resources and experience to manage production and business. To enhance
competitiveness and meet market demands, businesses need to invest in research,
science and technology and develop new products and improve existing ones. To take
advantage of the knowledge and experience of research units, enterprises can
cooperate with universities, research institutes or other units to be able to research and
develop products. At this point, it is possible to exploit South Korean cooperation
funds for Vietnam in scientific and technological development at universities.
Enterprises can participate in product research and development incentive
programs organized by governments, organizations or other enterprises to be able to
invest in product research and development. In addition, businesses need to create a
creative working environment that can motivate employees to participate in the
product research and development process. In the process of innovation, enterprises
need to regularly monitor and evaluate the results of the product research and
development process to be able to improve and perfect the product.
In order to easily access the needs of the South Korean market, Vietnamese
enterprises need to have practical surveys, interviews, learn from local news sources
and partners, or use professional consulting services, carefully study the market and
potential of products before bringing products into the South Korean market. Such as
understanding pricing, competition, corporate culture. consumer culture and other
requirements of the South Korean market. Vietnamese enterprises need to research
 29

similar products of local enterprises and other competing products from other
countries. Compare price, quality, packaging specifications and other specifications.
The next step, assessing the competitiveness of your products in the South Korean
market, considering factors such as price, quality, packaging, efficiency, and difficulty
in accessing the market.
Finding potential partners in South Korea is also an important job, including
distribution agents, manufacturing partners, and retailers. For industrial products,
enterprises need to look for partners to produce goods according to customer
Also within the framework of finding reputable distribution partners in South
Korea to bring products to that market, businesses need to build and manage a
connected and sustainable distribution system. Businesses need to learn and choose the
right distribution partner for their products. This partner needs to have experienced
staff and a wide distribution network in South Korea. After choosing the right
distribution partner, businesses need to build a good relationship with this partner. It is
necessary to regularly contact, offer preferential policies, provide product information
and value-added support to distribution partners. Businesses need to train distribution
partners' distribution staff to help them better understand their products and how to
promote them. Moreover, in order to retain long-term cooperation with distribution
partners, enterprises need to ensure the quality of products put into the distribution
system in South Korea, from quality inspection, packaging, storage and transportation
of products. In order for the distribution to take place quickly and smoothly,
businesses need to optimize the product distribution process in South Korea, from
adjusting schedules, reducing transportation costs, managing inventory to ensuring on-
time delivery.
Businesses need to develop an effective product promotion strategy, from
packaging design, advertising, product display events, to finding partners to promote
products on media channels and social networks in South Korea. This is probably a
difficult task for Vietnamese businesses and businesses with limited human resources
capable of proficient in the native language of kimchi. In addition, the communication
and advertising on the mass media system of South Korea face many obstacles,
especially the media budget is too high. Perhaps, this will be a potential solution for
businesses in the future when the 4.0 technology era is developing.
In addition to communication on mass media channels and social networks, the
traditional method is that businesses organize to participate in domestic and foreign
exhibitions and fairs, increasing opportunities for businesses to introduce their
products, seek partners and expand markets.
 30

CONCLUSION
This study analyzed the situation of South Korean imports of goods and
important implications for Vietnam. From data and analysis, it has been shown that
Korea has achieved certain successes and strategic plans to diversify its supply sources
and enhance the quality of imported goods. This shift not only reflects South Korea's
commitment to quality and economic efficiency but is also part of its strong
international integration strategy.
Over the past 30 years, Vietnam-South Korea economic relations have developed
significantly. Import and export turnover between the two countries is constantly
increasing, South Korea has become Vietnam's second largest trading partner, after
China. Meanwhile, Vietnam is South Korea's largest trading partner in Southeast Asia.
Electromagnetic products, telephones, microphones and components are the main
import and export items in the trade relations between the two sides. Bilateral and
multilateral trade agreements are signed to create favorable conditions for promoting
trade relations, reducing obstacles in tariff barriers, the mutual import and export
process is cleared, and enterprises of the two countries have conditions to enter the
market.
In addition to achievements, bilateral economic relations also face limitations and
obstacles. An alarming trade deficit situation of Vietnam is increasing, this poses for
the Government and businesses to have solutions to reduce and shorten the trade
deficit gap, avoiding that this situation will affect other related issues for a long time.
In the future, it is forecasted that Vietnam-South Korea economic relations will
continue to develop positively, especially after the two countries have joined the
CPTPP. The two countries will try to expand consumption markets, promote
investment and strengthen cooperation in various fields.
 31

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