South Korean Exports to Vietnam, New Zealand Rise

Seoul, South Korea’s exports to Vietnam and New Zealand continued to expand this year, apparently helped by bilateral free trade agreements (FTAs) amid a downturn in global trade, a report suggested Monday.

In the first 10 months of the year, South Korea’s exports to Vietnam surged 11.8 % from the same period last year, according to the report from the state-run Korea Trade-Investment Promotion Agency (KOTRA).

“It is such an inspiring result considering that Vietnam’s overall imports gained only 2.2 % on-year over the cited period,” it said.

The report also noted a sharp rise in shipments of consumer goods following the implementation of the Korea-Vietnam FTA a year ago.

In the January-October period, shipments of consumer goods to Vietnam spiked 14.2%, with shipments of washing machines soaring 102.1% on-year, apparently helped by the removal of Vietnam’s 5% import tariff under the bilateral free trade deal, it said.

An earlier report from the trade ministry said the country’s exports to Vietnam came to US$26.4% in the first 10 months of the year, making Vietnam the world’s third-largest importer of South Korean products after China and the United States.

The positive effect of an FTA on the country’s exports could also be seen in the Korea-New Zealand FTA, which also went into effect a year earlier on Dec. 20, 2015.

South Korean shipments to New Zealand have jumped 17.6% on-year as of end-October, while New Zealand’s overall imports have shrunk 3%, according to the report.

Source: Qatar News Agency