With guaranteed quality and business prestige, Korean products are gaining the trust of consumers in Vietnam. This is reflected by the increasing presence of its Korean products in the Southeast Asian country, on both urban and rural markets.
In recent years, Vietnam has witnessed growing trade deficit with South Korea. Specifically, its trade deficit with South Korea accounted for 34 percent of the country’s total in 2008, 37 percent in 2009, 50 percent in 2010, 83 percent in 2011, and 250 percent in the first two months of in 2012. South Korea is the second biggest export surplus with Vietnam, just after China. Vietnam has trade relations with hundreds of countries around the world but none has such a rapid deficit gap growth as with South Korea. The outcome is surprised as it reflects perfect penetration of Korean products in Vietnam.
The two-way trade was facilitated and expanded after the two nations signed the Strategic Partnership Agreement in October 2009. The two sides target to bring the bilateral trade revenues to US$20 billion in 2015 and balance the trade gap. With very rapid growth, the objective set for 2015 is likely to finish ahead of schedule.
While China, where Vietnam imports most, is well-known for cheap and poor-quality products, the second largest exporter to Vietnam is famous for high-end products. It is certain that Vietnamese consumers are very familiar with South Korean bedding suites. Compared to similar products, Korean items have more nice-looking designs, diverse species, and affordable prices. Vietnamese consumers are also very keen on Korean household goods. Its cosmetics are quite familiar to Vietnamese women as their quality is not inferior to European luxury goods.
In addition, beauty industry is a symbol of success of South Korea in Vietnam. Korean foods are also available in the country because there are more restaurants here.
Vietnam’s imports from South Korea are mainly highly valued items like computers, electronics, components, automobiles, parts, steel, plastic, fabric, leather and footwear materials. Currently, Korean goods are very popular in the Vietnamese market from urban to rural areas. With guaranteed quality and business reputation, Korean products are trusted and chosen by Vietnamese consumers.
Meanwhile, Vietnam's major exports to South Korea are raw products like crude oil, coal, coffee, seafood and rubber and simply processed items like furniture, apparel and footwear. To balance trade, Vietnam should reduce raw material export, enhance product quality to enlarge its presence there.
Phuong Lan
Vietnamese
