Vietnam rises as major export destination of S. Korea

[THE INVESTOR] South Korea’s exports to Vietnam are rising rapidly despite the record-long run of monthly exports decreases, data showed Aug. 25.

According to the Korea International Trade Associations, Korea’s exports to Vietnam during the first seven months of the year came to US$18.02 billion, rising 10.1 percent from the same period last year. In comparison, Korea’s overall exports declined by 10.1 percent over the same period.

With the increase seen this year, Vietnam is now Korea’s third-largest export destination, accounting for 6.4 percent of the country’s overall exports during the first seven months of this year.

Vietnam became Korea’s major export destination in 2009, taking the No. 10 spot with US$7.15 billion. At the time, exports to Vietnam accounted for 2 percent of Korea’s outbound shipments.

The rapid rise is thought to have been fueled in part by Korean firms such as Samsung Electronics setting up production facilities in the Southeast Asian country.

According to industry data, Vietnam has seen a large increase in imports of raw materials and parts used in manufacturing of electronics and other products since 2009.

By Choi He-suk (cheesuk@heraldcorp.com)