With high consumption, Korea is becoming an ideal destination for Vietnam’s enterprises in the context of increasingly narrow export markets. However, successfully penetrating this market is not easy. Therefore, the seminar "Opportunities and Challenges of the Korean market" recently held in Ho Chi Minh City discusses how to access the Korean market, culture and business customs, legal regulations on importers, and business and investment opportunities for Vietnamese businesses.
Mr Kim Euk Guen, now working for the Korean Consulate, Commerce sector (Korean Embassy to Vietnam's commerce sector), as well as Director of Global Kim Corporation, said Vietnam's export to South Korea is still limited because Vietnam’s enterprises are not active in approaching the market, in advertising their products or brand names, as well as in seeking for the assistance from Associations and Government agencies. Accordingly, Mr Kim Euk Guen recommended that to successfully penetratetheKorean market, Vietnamese enterprises should actively seek information and take advantage of support from various sources. Specifically, these enterprises should access the Korean market through popular channels, such as trade centres, or shopping through television, through e-commerce, and take advantage of support from Korean Government agencies and Associations like the Korean Investment and Trade Promotion Agency (Kotra) and Korean International Trade Association (Kita).
Mr Nguyen Anh Ngoc, Deputy Director of Investment and Trade Promotion Centre of Ho Chi Minh City, said that despite being one of the five largest trade partners of Vietnam, export turnover of Vietnam to South Korea is very limited. Vietnam exports to Korea such products as crude oil, seafood, coffee, cotton, textiles, footwear, wood and wood products, and imports electronics machines, steel and other types of refrigeration appliances, chemical equipment, cars, materials for the garment industry and some consumer goods.
But in 2010, while export turnover of Vietnam to Korea was only less than US$3 billion, the export turnover of Korea to Vietnam reached nearly US$10 billion. Mr Anh emphasised, "If there are proper methods for Vietnamese enterprises to access the Korean market more widely and deeply, the possibility of success as well as increasing export turnover in this market is huge." Currently there are many products of Vietnam which may boost exports to Korea.
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currently ranks second among countries and territories investing directly in , with registered capital of US$22.8 billion. It is also ’s fourth biggest export market, with trade turnover of nearly US$13 billion in 2010, striving to reach US$420 billion by 2015. Korean investors have been participating in infrastructure construction, telecommunications, heavy industry and mechanical, real estate, car manufacturing, shipbuilding, restaurants and hotels in . The ASEAN – Korea Free Trade Zone Treaty also has impacts on ’s economic structure. In detail, besides the export benefits, Vietnamese enterprises have favourable conditions to access raw material sources, machinery, and technology for more effective production and business, and for enhanced market competitiveness.
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According to the Korean Chamber of Commerce Service (CS Korea), to successfully run a business and limit risks, Vietnamese enterprises should seek legal consultancy before signing contracts, in which all the distribution and agent contracts must include provision for termination, since a contract signed between suppliers and sales agents and distributors with termination clause will be given priority. Also, enterprises should seek legal consultancy related to protection of intellectual property rights, registered trademarks, and patents (if any) with the Korean Intellectual Property Office (KIPO) because this is necessary for protecting business interests.
An official of the Korean Trade Consulate in Ho Chi Minh City, Mr Byun Dong Ook, said despite having conducted surveys and penetrating the Korean market over the past 10 years, Vietnam's exports to Korea have not achieved the most effective results, and now are facing the challenges of techniques, laws and culture, of which the biggest barrier is cultural issues. Mr Byun Dong Ook said the Korean people have a habit of using domestic production, so not only Vietnamese but even well-known brand names exported to Korea will face difficulties. Therefore, for successful export to Korea, Vietnamese enterprises should avoid competition with local businesses associated with trying to compete with goods that Korea needs to import. Also, Mr Byun Dong Ook stated that to successfully compete and win consumers in “Kim Chi” land, Vietnam enterprises should pay more attention to improving the quality, diversification of design, and more eye-catching packaging designs.
Hong Ha
Vietnamese
