Samsung Electronics’ factory in Thai Nguyen Province, northern Vietnam (image provided by Samsung Electronics)
SEOUL, Jan. 26 (Korea Bizwire) — South Korea’s trade with Vietnam continued to deepen last year, with the Southeast Asian nation holding its position as Korea’s third-largest trading partner for a fourth consecutive year, underscoring the growing importance of export diversification beyond China and the United States.
According to data released Monday by the Ministry of Trade, Industry and Energy and the Korea International Trade Association, South Korea’s exports to Vietnam rose 7.6 percent in 2025 from a year earlier to $62.8 billion. Imports from Vietnam climbed 11.7 percent to $31.8 billion, lifting total bilateral trade to $94.5 billion — a 9 percent increase from the previous year.
The figure ranked behind only China, with $272.7 billion in trade, and the United States, with $196.2 billion, making Vietnam South Korea’s third-largest trading partner. Vietnam first overtook Japan for the No. 3 spot in 2022 and has retained the ranking ever since.
South Korea posted a $31 billion trade surplus with Vietnam last year, the second largest among its trading partners after the United States. The surplus widened by $1.1 billion from the previous year, reflecting strong export momentum led by semiconductors.
Chip exports to Vietnam surged 36.7 percent to $24.7 billion, making semiconductors Korea’s top export item to the country. The gains came amid a global boom in artificial intelligence and data center investment, which pushed South Korea’s overall semiconductor exports to a record $173.4 billion in 2025, up 22.2 percent from a year earlier.
This photo provided by HD Korea Shipbuilding & Offshore Engineering Co. shows a manufacturing complex of Doosan Vina in Vietnam. (Yonhap)
Trade between the two countries has expanded dramatically since diplomatic ties were established in 1992, when bilateral commerce totaled just $500 million. More than three decades later, trade has grown nearly 190-fold, with the export mix shifting from labor-intensive goods such as textiles to high-value products including chips and wireless devices.
The 2014 Korea–Vietnam free trade agreement played a pivotal role in accelerating that growth. Since the pact took effect in 2015, bilateral trade has more than tripled, rising from roughly $30 billion to nearly $95 billion. Vietnam climbed from Korea’s eighth-largest trading partner in 2014 to fourth the following year, before advancing to third place in 2022.
Much of the trade is driven by Korean investment in Vietnam, where manufacturers export intermediate goods to local factories and reimport finished products. Samsung Electronics alone produces more than half of its global smartphone output in Vietnam and accounts for about 20 percent of the country’s total exports.
The company has continued to expand its footprint, including the opening of a large research and development center in Hanoi in 2022.
In recent years, exports of consumer goods such as cosmetics and food products have also risen, buoyed by the popularity of Korean culture.
Lotte Mall West Lake Hanoi, a large shopping mall in Vietnam, has been operating successfully since its opening in 2023. (Image courtesy of Lotte Shopping)
Vietnam, in turn, has become a central pillar of Korea’s broader trade strategy. Korean officials say the country is a key market in efforts to reduce reliance on the world’s two largest economies.
“Amid a rapidly shifting global trade environment, Vietnam stands out as a strategic partner for diversifying Korea’s export markets,” a trade ministry official said, adding that Seoul would continue supporting mutually beneficial trade in semiconductors and consumer goods alike.
Ashley Song (ashley@koreabizwire.com)
