Agreement offers RoK market opportunities for Vietnamese goods

Processing cashews for export - photo: VNA

The Vietnam-RoK trade value reached US$55.9 billion in the first nine months of 2023 (16.4 percent less than the same period of 2022), including Vietnam’s exports worth US$17.7 billion (down 5.5 percent and accounting for 6.8 percent of Vietnam's total export value) and the country’s imports worth US$38.2 billion (down 20.7 percent and representing 16.1 percent of Vietnam's total import value).

The Vietnam Trade Office in the RoK assessed FTAs, including RCEP, are offering more opportunities for Vietnam and the RoK to develop bilateral trade relations. The two countries’ import and export structures are complementary. However, there are more challenges, as the trend of trade protection has increased in many countries due to goods supply disruption, and high inflation has decreased the demand for goods, especially non-essential goods, in countries that are Vietnam's major markets. The RoK’s sanitary and phytosanitary (SPS) measures continue challenging Vietnam's export of farm produce, seafood and processed foods.

The Trade Office said Vietnamese businesses need to learn about the RoK market’s trend if they are to promote exports to this market. Koreans are increasingly interested in instant foods that are easy to cook and eat, organic products, food for the elderly, meat substitute products, and social and governance (ESG) model-based and environmentally friendly products with non- or less-plastic packaging.

Papaya processing

The RoK has strict food hygiene, safety and quarantine regulations, and Vietnamese businesses need to gain partner’s trust, apart from ensuring good, stable quality goods and services.

The Vietnam Trade Office in the RoK said it is necessary to help businesses take advantage of RCEP incentives. It will propose that the RoK assist Vietnamese businesses in market and product analysis, as well as marketing through social platforms while promoting exchanges and cooperation between Vietnamese and RoK businesses and business associations, including cooperation with such Korean distributors as Lotte Mart, E-Mart, Home Plus, and CJ Home Shopping, in order to increase sales to major supermarkets and distribution channels in the RoK.

It is necessary for Vietnamese businesses to attend professional, prestigious trade fairs and exhibitions in the RoK. Ministries and sectors need to adopt policies encouraging RoK businesses to cooperate and invest in production of farm produce for export to the RoK, and develop infrastructure to attract Korean investment in support industries in Vietnam.