According to data released by the Korea International Trade Association (KITA) on February 5, the trade turnover between Vietnam and South Korea reached $79.43 billion last year. Among them, exports from South Korea to Vietnam contracted 12.3 per cent to $53.49 billion. Meanwhile, imports from Vietnam also shrank 2.9 per cent year over year to $25.94 billion.

Vietnam has overtaken Japan for two years in a row in 2023 to maintain the position as South Korea's third-largest trading partner.

The decline in trade with and exports to Vietnam was attributed to shrinking chip exports. South Korea saw its semiconductor shipments to Vietnam drop by 21.6 per cent on-year to $12.73 billion in 2023.

A decrease was also observed in four other exports: flat panels and sensors, petroleum products, wireless communications equipment, and synthetic resins, according to KITA.

Trade between South Korea and Vietnam was $500 million in 1992, when the two countries set up their formal diplomatic relations. After South Korea and Vietnam inked a free trade agreement in 2014, the volume of bilateral trade increased even further. As a result, Vietnam became South Korea's eighth-largest trading partner that year, but its ranking surged to fourth place a year later.

In 2022, bilateral trade between the two countries reached $87.7 billion, a 175-fold increase. Vietnam surpassed Japan and became South Korea's third-largest trading partner in 2022.