For the first seven months of 2018, Vietnam’s garment and textile exports to South Korea rose by 24.8 per cent year on year. July alone saw a 24.1 per cent increase from earnings made in June. The rise was 24 per cent from what it was in July 2017. The tax benefits from the Vietnam-South Korea FTA have further created a favorable environment for Vietnam to enter the market of South Korea.
South Korea will contribute to Vietnam’s goal of becoming an industrialized economy by lifting bilateral trade to 100 billion dollars by 2020. Trade between Vietnam and South Korea has risen rapidly since a free trade agreement between the two took effect in December 2015. In 2017, South Korea replaced the United States as Vietnam’s second largest trading partner, after China. It is also the largest source of foreign direct investment in the Southeast Asian economy.
Bilateral trade rose 51 per cent last year. Vietnam exports mainly garments, cell phones and seafood to South Korea, while its key imports include electronic components, machinery, fabrics and plastics. The countries will work toward reducing Vietnam’s deficit in bilateral trade.