The main competitor for Korean products in Vietnam is 'Japan'... China ranks third

Promising Export Items Include Cosmetics, Food, Electronics, and Health Supplements

Response on Factors Contributing to the Rise of South Korea's National Brand Power

[Asia Economy Reporter Park Sun-mi] In the Vietnamese market, South Korea's third-largest export destination, the biggest competitor to Korean products was found to be "Japan." China, which was the top competitor until 2018, has fallen to third place.

On the 7th, the Ho Chi Minh branch of the Korea International Trade Association conducted a "Survey on Perceptions of Korea and Korean Products" targeting 956 Vietnamese buyers and general consumers. As a result, 80.3% of respondents evaluated that "the competitiveness of Korean products is strengthening."

As competing countries that could replace Korean products, "Japan" (70%, multiple responses) was most frequently pointed out, followed by the United States (26%) and China (20.7%). In the 2018 survey, China ranked first as a competitor, but this year it dropped to third place, falling behind Japan, which was second at the time, as well as the United States. The report analyzed that "as Vietnam's income level rises, more consumers purchase products based on quality rather than price, and distrust of low-priced Chinese products has spread, which is the main cause."

Regarding the national brand power of "Korea," more than half (52.4%) responded that "brand power has strengthened after the pandemic." In contrast, only 6.2% said it had "weakened." The main factors strengthening national brand power were most frequently cited as "the spread of K-content" (46.3%), followed by "strengthening of quarantine and trust image" (17.8%), and "development of Korean companies" (15.4%).

Meanwhile, 9 out of 10 Vietnamese (92.9%) reported having purchased Korean products within the past year, and 93.8% said they would continue to buy Korean products in the future. The main purchasing channels were online channels such as "SNS, internet, direct purchase, home shopping" at 72.9% (multiple responses), and offline channels such as "marts and convenience stores" at 71.8%, showing that despite the COVID-19 pandemic, offline purchases were utilized almost as much as online.

As promising export items to Vietnam, local consumers selected "cosmetics, food, and electronics," while buyers chose "electronics, health foods, and cosmetics." The report forecasted that Korea's main export items to Vietnam, such as cosmetics, food, and electronics, will continue to have a bright outlook.

Lee Dong-won, head of the Ho Chi Minh branch of the Korea International Trade Association, said, "Korea's brand power in Vietnam is improving day by day, and the competitiveness of Korean products is continuously strengthening based on excellent quality and sophisticated design," adding, "Our companies should target the Vietnamese market by focusing on promising items and implementing differentiation strategies from Japanese products and strengthening price competitiveness."