Vietnam Emerges as South Korea's Largest Trade Surplus Partner for the First Time in 30 Years of Diplomatic Relations

Vietnam Becomes South Korea's Largest Trade Surplus Partner for the First Time in 30 Years
Surplus of $34.25 Billion Exceeds the US ($28.04 Billion)

[Asia Economy Sejong=Reporter Lee Jun-hyung] Vietnam became South Korea's largest trade surplus country last year. It has been 30 years since South Korea and Vietnam established diplomatic relations. Due to the surge in energy prices, Saudi Arabia took the top spot as the largest trade deficit country.

According to the Ministry of Trade, Industry and Energy on the 4th, South Korea's trade surplus with Vietnam last year was recorded at $34.25 billion. This was the result of exports to Vietnam amounting to $60.98 billion, greatly exceeding imports of $26.72 billion. It is the largest trade surplus among South Korea's trading partners. It exceeds the trade surplus with the United States, the previous largest trade surplus country, by $6.21 billion, which was $28.04 billion.

This is the first time Vietnam has become South Korea's largest trade surplus country on an annual basis since diplomatic relations were established in 1992. Over the past 30 years, economic cooperation between the two countries has strengthened, significantly increasing the trade surplus. South Korea's trade surplus with Vietnam has maintained a positive trend since recording a $300 million surplus in the first year of diplomatic relations in 1992.

Exports to the United States last year reached $109.82 billion, surpassing $100 billion for the first time ever. Exports to India, an emerging market, amounted to $18.88 billion, a 21% increase compared to the previous year. Thanks to this export growth, India, which ranked 5th among South Korea's trade surplus countries in 2021, rose to 4th place last year.

The trade surplus with China shrank. Last year, the trade surplus with China was $1.25 billion, but the surplus ranked only 22nd. After ranking 3rd among trade surplus countries from 2020 to 2021, it fell to the 20th position within a year. This was due to a decrease in exports to China caused by the economic slowdown in China, while imports from China increased due to the surge in raw material prices such as lithium. As a result, the trade surplus with Hong Kong, which has many re-exports to China, also sharply decreased from $35.3 billion in 2021 to $25.79 billion last year.

There were also changes in the ranking of deficit trading partners. Last year, Saudi Arabia, with a trade deficit of $36.71 billion, was South Korea's largest trade deficit country. Australia ranked second with a deficit of $26.09 billion. The surge in energy prices due to geopolitical conflicts such as the Ukraine crisis led to an increase in import amounts. Saudi Arabia and Australia are South Korea's largest import sources of crude oil and natural gas, respectively.

Last year, exports recorded over 680 billion dollars, achieving the highest performance in history. However, overall exports are declining due to the global economic slowdown caused by instability in the external trade environment. Next year, it is expected that export conditions will worsen compared to this year as major countries experience severe consumption contraction due to the global economic recession. In response, the government and export-related organizations must closely cooperate and boldly implement necessary institutional improvements. Busan Gammam Port, symbolizing "Export Korea," continues to shine brightly in the darkness, tirelessly loading export goods even at the end of the year.

Busan ? Photo by Yoon Dong-joo doso7@