Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
권호 표지
DOI QR코드

DOI QR Code

A Analysis of Vietnam's Trade Competitiveness with Korea by Technology Level(2002-2020)

기술수준별 베트남의 대 한국 무역경쟁력 분석(2002-2020)

  • Hoang Thi Thao Huyen (Department of International Trade and Logistics, Chung-Ang University) ;
  • Jin-Ho Noh (Department of International Trade, Soon Chung Hyang University) ;
  • Choong-Bae Lee (Department of International Logistics, Chung-Ang University)
  • Received : 2022.12.01
  • Accepted : 2022.12.29
  • Published : 2022.12.30
Download PDF
⟨ Previous Next ⟩

Abstract

Since the Korea-Vietnam FTA was signed in 2015, trade between the two countries has increased rapidly, accounting for 6.8% of Vietnam's exports and 17.9% of its imports in 2020. The two countries show differences in import and export items. Vietnam has a high export ratio of agri-food products or products with the low-middle level of technology, while Korea has a high export ratio of products with the upper-middle level. The purpose of this study is to present implications by analyzing changes in trade competitiveness between Vietnam and Korea by technology level (2002-2020). For this purpose, statistics from UN Comtrade were used, and methodologies such as market share, Export Market Share (EMS), Trade Specialization Index (TSI), Intra-Industrial Trade Index (IIT), Revealed Comparative Advantage (RCA), and BCG Matrix were used. The results of the study are as follows. First, when looking at Vietnam's trade structure with South Korea by technology level, it was analyzed that the trade deficit widened as it showed a competitive disadvantage in high-tech, ICT, middle- and low-level technology items, excluding low-end technology items. Second, in terms of market share, the market share of Vietnamese products in the Korean market is continuously increasing, while the Korean market share in Vietnam is gradually decreasing from 2017. Third, Vietnam's export competitiveness to Korea by technology level shows that low-level technologies are competitive, but they are inferior in competitiveness in all other technology level, and especially in areas with high technology level, the level of inferiority is high. In conclusion, the trade relationship between Vietnam and Korea has maintained a mutually complementary rather than competitive relationship, which is expected to continue in the future.

Keywords

Acknowledgement

This research was supported by the 4th Educational Training Program for the Shipping, Port and Logistics from the Ministry of Oceans and Fisheries.

References

  1. Ahmad, I. M.H. Kunroo and I. Sofi (2017), "An RCA Analysis of India-China Trade Integration: Present, Potential and Prospects", Foreign Trade Review, 53(2), 1-10.
  2. Balassa, B. (1965), "Trade Liberalisation and "Revealed" Comparative Advantage 1", The Manchester School, 33(2), 99-123. https://doi.org/10.1111/j.1467-9957.1965.tb00050.x
  3. Bano, S. and N. K. Paswan (2016), "New Zealand-India Trade Relations and Growth Potential: An Empirical Analysis", India Quarterly, 72(1), 50-74. https://doi.org/10.1177/0974928415618754
  4. Dewi, S. S. and L. Xia (2021), "Analysis of Trade Specialization and Competitiveness of Indonesian Coconut Oil in the International Market (2010-2020)", Open Journal of Business and Management, 10(1), 245-262.
  5. Duran Lima, J. and M. Alvarez (2008), Indicadores De Comercio Exterior Y Politica Comercial:Mediciones De Posicion Y Dinamismo Comercial, Santiago De Chile: Copyright Naciones Unidas.
  6. Ferto, I. and L.J., Hubbard (2003), "Revealed Comparative Advantage and Competitiveness in Hungarian Agri-Food Sectors", The Word Economy, 26(2), 247~259. https://doi.org/10.1111/1467-9701.00520
  7. Fontagne, L., M. Freudenberg and G. Gaulie r(2006), "A Systematic Decomposition of World Trade into Horizontal and Vertical IIT", Review of World Economics, 142(3), 459~475. https://doi.org/10.1007/s10290-006-0076-6
  8. Grubel, H. G. and P. J. Lloyd (1971), "The Empirical Measurement of Intra-Industry Trade", Economic Record, 47(4), 494-517.
  9. Havrila, I. (2003), "Analysing Comparative Advantage and Competitiveness: An Application to Australia's Textile and Clothing Industries", Australian Economic Paper, 42(1), 103~117. https://doi.org/10.1111/1467-8454.00189
  10. Hatzichronoglou, T. (1997), Revision of the High-Technology Sector and Product Classification, OECD Science, Technology and Industry Working Papers, No. 1997/2, OECD, Paris.
  11. Kien, T.N., Hong Ryun Lee and Yoon Heo (2010), "Dynamic Patterns of Korea-Vietnam Trade Relations", International Area Review, 13(2), 257-279. https://doi.org/10.1177/223386591001300213
  12. Kien, T.N. and Yoon Heo (2014), "Technology, Factor Proportion and Complementarity: Trade Relations between Korea and Vietnam", Journal of International Logistics and Trade, 12(1), 23-42. https://doi.org/10.24006/JILT.2014.12.1.002002
  13. Kim, Seung-Nyeon and Sang-Jik Lee (2020), "A Study on the Trade Structure between Korea and Vietnam: Focused on the Changes in the Intra-industry Trade", Southeast Asia Journal, 29(3), 3-34.
  14. Kim, Young-Sik and Jung-Bum Wee (2010), "Regional Trade Structure of the North-Eastern Asian Countries", Korean Journal of Business Administration, 23(6), 3059-3081.
  15. Kita (2020), Export and Import Trends in Vietnam and Korea-Vietnam in the First Half of 2021, Korea International Association, 1-11.
  16. Kwak, Su-Young and Mie-Jung Kim (2018), "A Study on the Analysis of International Trade Competitiveness between Korea and Vietnam", International Commerce and Information Review, 20(3), 49-74.
  17. Lim, Kyu-Chae and Hee-Ho Kim (2021), "A Study on the Competitiveness of the Vietnam Market and Trade Scale Determinants", Journal of Korea Regional Economics, 19(1), 99-124.
  18. Oh, In-Shik (2005), "Analysis on Trade Structure between Korea and Vietnam", The Journal of Social Sciences, 20, 1-19.
  19. Park, Kyoung-Hwan (2018), "A Study on the Feature of Trade between Korea and Vietnam and Plans to Promote Exports to Vietnam", Korean Business Education Review, 33(3), 49-71. https://doi.org/10.23839/kabe.2018.33.3.49
  20. Phan, T. H. and Ji-Young Jeong (2012), "An Analysis of Korea-Vietnam Bilateral Trade Relation", Munich Personal RePEc Archive, 1-24.
  21. Quansah, K. A. and Woo-Chul Ahn (2017), "The Effect of the Korea-Australia Free Trade Agreement (KAFTA) on the Korea-Australia Trade Structure", The Asian Journal of Shipping and Logistics, 33(4), 229-235. https://doi.org/10.1016/j.ajsl.2017.12.006
  22. Shen, Z. F., Tae-In Kim and J. J. Gu (2017), "A Comparative Analysis on the Export Competitiveness between Korea and China: Focusing on RCA and TSI", Asia-Pacific Journal of Business, 8(2), 57-73.
  23. Son, Yong-Jung (2006), "An Analysis on Export Competitiveness of Korea Manufacturing Industriesin the U.S.A. Market", International Commerce and Information Review, 8(4), 89-104.
  24. UN COMTRADE DATABASE. Available from https://comtrade.un.org/
  25. Yu, Jae-Seon and H. Ding (2019), "The Qualitative Trade Competitiveness of China in IT Industry: A Comparison to Korea and USA", Journal of Korea Trade, 23(3), 20-37. https://doi.org/10.35611/jkt.2019.23.3.20