- Second Year Outcomes of Korea-Viet Nam FTA
- The KVFTA has contributed to upgrading
bilateral relations between Korea and Viet Nam since its entry
into force in December
2015 by way of additional market-opening and eased rules of origin in comparison to the Korea-ASEAN FTA.
- Even amid lingering uncertainty in the
global economy and other unfavorable export conditions, Korea's
exports to Viet Nam increased by 17.6% year-on-year from $27.7
billion in 2015 to 32.6 billion in 2016, while Viet Nam's exports
to Korea also went up
by 27.4% from $9.8 billion to 12.4 billion during the same period. (Source: Korea International Trade Association).
- The KVFTA has contributed to upgrading bilateral relations between Korea and Viet Nam since its entry into force in December
- Korea-Viet Nam Trade Status by Year ($mill, YOY%)
- In particular, trade in FTA beneficiary goods, such as consumer goods (e.g. cosmetics), intermediary goods (e.g. auto parts, textile and fabrics) and food (e.g. mangoes), has surged. Exports of Korea's cosmetics to Viet Nam (tariffs 20% → 16% with liberalization over 10 years) increased by 34.9% from $44 million in 2015 to 59 million in 2016 and auto parts (tariffs 15% → 12% with liberalization over 5-10 years) by 29.6% from $301 million to 389 million over the same period.
- Likewise, exports of Viet Nam's mango to Korea (tariffs 30% → 24% with liberalization over 10 years) saw a rise of 80.1% from $700,000 in 2015 to 1.3 million in 2016 and rice paper (tariffs 8% → 2.7% with liberalization over 3 years) by 8.9% from $5 million to 6 million over the same period. Exports are expected to further expand between Korea and Viet Nam, boosted by additional tariff reduction or elimination going forward.
- Korea-Viet Nam Trade Status by Product in 2016 ($mill, YOY%), 4-digit MTI
- Regarding investment, despite the modest
increase of Korea's investment to Viet Nam by 5.8% in 2016
year-on-year, the number
of investments grew by 35.6%. Viet Nam's investment to Korea skyrocketed by 500%.
- Korea's Investment to Viet Nam by Year (reported) (unit: case, $mill, YOY%)
- Viet Nam's Investment to Korea by Year (reported) (unit:case, $mill, YOY%)
|ranking||Korea -> Viet Nam||Viet Nam -> Korea|
|1||Integrated circuits semiconductors (8311)||8,642||112.3||radio telecommunication parts (8128)||2,870||38.7|
|2||Flat panel displays (8361)||7,352||196.9||Textile garment (4412)||1,928||15.1|
|3||Radio telecommunication parts (8128)||3,205||∆36.0||Radio-telephones (8121)||844||154.0|
|4||Printed circuits (8343)||2,099||63.8||Knitted garment (4411)||830||20.7|
|5||Gasoline (1331)||1,849||91.6||Footwear (5212)||783||24.6|
|6||Synthetic regins (2140)||1,442||19.8||Flat panel displays (8361)||600||1,075.9|
|7||Flat panel displays Manufacturing Equipment(7361)||1,280||1,035.8||Printed circuits (8343)||386||103.6|
|9||Knitted fabrics (4360)||1,118||3.8||Wood(0319)||296||16.7|
|10||Plastic products(3109)||936||69.7||Integrated circuits semiconductors (8311)||289||425.9|