RoK, Vietnam’s potential export market

14:23 | 18/12/2016 Trade

(VEN) - The Republic of Korea (RoK) is a major importer of Vietnamese goods such as seafood, wood products, and coffee. Many kinds of Vietnamese products have become firmly positioned in this market.

According to the Vietnam Association of Seafood Exporters and Producers, Vietnamese seafood has won the trust of Korean consumers for diversity and high quality. The RoK currently is the fifth largest importer of Vietnamese shrimp, ranking behind the US, Japan, the EU, and China.

The free trade agreement between Vietnam and the RoK has facilitated Vietnamese shrimp exports to this market. In the first nine months of this year, Vietnam exported 19,105 tonnes of shrimp worth US$195 million to South Korea, up 8.3 percent in volume and 10 percent in value compared with the same period last year.

The RoK is also an important destination for Vietnamese timber and wood products. Vietnam has exported approximately US$500 million worth of wood to this market annually with the export value growing nearly 30 percent per year.
Vietnam Timber and Forest Product Association Vice President Nguyen Ton Quyen said South Korean importers highly appreciated Vietnamese wood products. He predicted wood exports to this market would grow more strongly and possibly exceed US$600 million next year.

Vietnamese agricultural products such as mango, lime, ginger, and coffee also sell well in South Korea. The Viet Duc Food Technology Co., Ltd in Dong Thap Province has exported fresh mangoes and passion fruit to this market via In Jae, a Korean company.

In June 2016, In Jae signed a contract with the Cao Lanh Cooperative to purchase 80 tonnes of fresh limes per month at fixed prices of 20,000 per kg in the first six months and VND12,000 per kg in the last six months annually.

Exporters consider South Korea a difficult-to-please importer in Asia, with strict examinations on all kinds of agricultural products. The South Korean side will only grant export certificates for Vietnamese processed fruit and vegetables following careful examinations at all stages, from cultivation to harvesting, processing, and preservation.

Ho Thanh Phong, Director of the Ho Chi Minh City Branch of the Luong Quoi Coconut Company in Ben Tre Province, said South Korea is a major export market for coconut oil products. He believed the company’s export value would continue rising in the coming time.

According to the Nam Long Co., Ltd, a rubber glove manufacturer, to maintain exports to South Korea, Vietnamese businesses need to abide by importer regulations pertaining to quality, packaging, and seriously implement price-related commitments.

In the opinion of Nguyen Ton Quyen, gaining the trust of Korean importers is crucial to exporters to this market.
Although South Korea is a difficult-to-please market with high requirements for each kind of product, many Vietnamese businesses have been gradually accepted by purchasers and retailers in this market, paving the way to increase the presence of Vietnamese agricultural products in South Korea.

Thuy Duong