Korea’s Recent Export to Vietnam and Implications

Abstract

In 2015, while Korea’s total exports were sluggish mainly due to weak global demand, its exports to Vietnam have increased rapidly, and Vietnam emerged as Korea’s top 3rd export destination. During the first 10 months of 2015, the total export of Korea contracted 7.6% YoY, mainly due to the weak demand in major markets such as, China, Japan and Singapore. Meanwhile, Korea’s exports to Vietnam rapidly increased with a growth rate of 27.8% YoY. Korea’s exports to China, the biggest market, have contracted for two consecutive years. Exports to Japan, the 3rd largest export destination of Korea since 2001, have also plunged with a growth rate of –21.2% YoY, and being consequently overtaken by Vietnam.