Open the Korean market for agricultural products

According to the Institute of Policy and Strategy for Agricultural and Rural Development, Korea is currently Vietnam’s 4th largest agricultural, forestry and fishery export market. Since the Vietnam-Korea Free Trade Agreement (VKFTA) took effect, the export value of Vietnamese agriculture, forestry and fishery products to Korea has increased sharply, averaging more than 2 billion USD/year during the period 2016-2023.

Statistics from the Vietnam Association of Seafood Exporters and Producers (VASEP) show that, after VKFTA took effect at the end of December 2015, Vietnamese seafood exports to Korea have grown clearly. Export turnover from 585 million USD in 2015 to 787 million USD in 2023, an increase of 35%. Shrimp market expert (VASEP) Phung Thi Kim Thu said: Korea is Vietnam’s largest export market for squid and octopus, accounting for 37% of total export value. Vietnam currently ranks second in supplying squid and octopus to Korea, after China. It is expected that Vietnam’s squid and octopus exports to Korea will continue to grow positively in the first quarter of 2024. In addition, shrimp is also the main seafood product exported to Korea.

In the coming time, this market will still be the destination of many businesses due to its advantage of close geographical location and stable consumption demand, especially in the context of inflation causing consumption to decline sharply in large markets. like America and Europe. On the other hand, when shipping rates to the US and Europe skyrocket, closer markets such as Korea will have great attraction for businesses.

Along with seafood, products from industrial crops also have many prospects for export to Korea in 2024. According to the Import-Export Department (Ministry of Industry and Trade), in 2023, Korea will increase coffee imports from Vietnam. In the South, the increase is 17.9% in volume and 16.3% in value compared to 2022, reaching 41.45 thousand tons, worth 93.35 million USD. Vietnam’s coffee market share in Korea’s total imports increases from 17.15% in 2022 to 21.52% in 2023. It is expected that the revenue of the Korean coffee market will reach 2.2 billion USD in 2024.

This is an opportunity for coffee producing countries around the world to boost exports to Korea, including Vietnam. Meanwhile, in the first two months of 2024, Korea is Vietnam’s third largest rubber export market, reaching 8.2 thousand tons, worth 12.77 million USD, an increase of 61.7% in volume and 60.3% in value compared to the same period in 2023.

Particularly for fruits and vegetables, in 2023, Korea will also become Vietnam’s third largest export market with a turnover of 226 million USD, an increase of 25% compared to 2022. Information from the Institute of Policy and War. According to the report “Agricultural Outlook 2024” published by the Korea Institute of Rural Economics in mid-February 2024, Korea’s frozen fruit imports in 2023 will be 64,000. tons, an increase of 6% compared to 2022 (60,000 tons). In 2024, frozen fruit imports are expected to increase further as South Korea applies a quota tax to reduce or exempt taxes on imported fruit to stabilize domestic fruit prices. Vietnamese businesses are also looking for opportunities to promote fruit and vegetable exports to this market, especially fruit.

In February 2024, the People’s Committee of Cho Moi district, An Giang province held a ceremony to announce the export of 13 tons of flat-seeded mangoes to Korea, opening up new market opportunities for this product. According to the Vietnam Trade Office in Korea, mango is a popular tropical fruit product and has high demand in the Korean market. Therefore, the room for mango export is still very large for Vietnamese businesses.

However, along with the general trend, agricultural, forestry and fishery products exported to Korea must meet increasingly strict requirements on quality, food hygiene and safety and animal quarantine measures. , plants, especially for Vietnam’s main export products such as seafood, fruit, and coffee.

This is also the big reason why Vietnam’s agricultural, forestry and fishery market share only accounts for 4% of Korea’s total agricultural, forestry and fishery import value in 2023. To promote agricultural trade activities between the two countries, in mid-March 2024, the Ministry of Agriculture and Rural Development and the Korea International Cooperation Agency (KOICA) organized a workshop “Vision of Vietnam-Korea cooperation in the field of agriculture by 2030”.

Accordingly, KOICA will continue to support the development of Vietnam’s agriculture through many projects such as: Improving value chains, promoting market linkages, and strengthening capacity to respond to climate change to create sustainable agriculture. High quality products, meeting the requirements and consumer tastes of the Korean market.