The importation goods by South Korea in period time from 2015 to 2022 and lessons for Viet Nam - Pháp luật đại cương | International economics

lOMoAR cPSD| 44919514 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang THE COMMITMENT
I commit that this is exactly my own essay based on my effort. The quotations
and materials used in this essay are completely honest, sourced from and
guaranteed to the highest level of accuracy in highest level of my knowledge. If
it is not true with my commitment, I will take responsibility for my assignment. Ha Noi, 3rd/2/2023 Student THE THANKS
First of all, I would like to express my deep gratitude to the lecturers of the
National Economics University in general and the lecturers of the Institute of
International Trade and Economics in particular, who have dedicatedly taught
and communicated to us. valuable knowledge and experience.
Especially, I would like to thank Assoc.Prof.Dr. Nguyen Thuong Lang, who
directly guided me throughout the course of the exercise. During the time
working with you, I have not stopped learning to accumulate a lot of useful
knowledge for myself, but also have learned the spirit of serious and effective
work, these are very necessary things for me in my career. future study and work
Finally, I would like to express my sincere thanks to my family and friends who
have always encouraged, contributed ideas and helped in the process of
studying and researching to complete this exercise. Ha Noi, 3rd/2/2023 Student THE TABLE OF CONTENTS Tran Thi Lan Huong Page 2 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
THE OPENING -------------------------------------------------------
4 1.1 The importance of topic: -------------- Error! Bookmark not defined.
1.2 The research overview: ------------------------------------------------------------------------------------------------ 7
1.3 The objectives and Missions: ----------------------------------------------------------------------------------------- 7
CHAPTER 1: BASIC THEORIES OF THE IMPORTS ---------- 8
1. Definition: ------------------------------------------------------------------------------------------------------------------- 8
2. Characteristic: ------------------------------------------------------------------------------------------------------------- 9
3. Classification: ------------------------------------------------------------------------------------------------------------- 10
4. Roles: ------------------------------------------------------------------------------------------------------------------------- 11
5. Factors affecting import activities ----------------------------------------------------------------------------------- 12
CHAPTER 2: THE SOUTH KOREA’S IMPORT IN 2015-2022
------------------------------------------------------------------------- 13
1. Overview about South Korea: ---------------------------------------------------------------------------------------- 13
2. Republic South Korea’s economy: ---------------------------------------------------------------------------------- 14
3. The import activities of Korea from 2015 - 2022: ------------------------------------------------------------- 17
4. Types of Korea’s import products: --------------------------------------------------------------------------------- 19
5. Main Partner Countries: ------------------------------------------------------------------------------------------------ 21
6. Import comparison of Korea and Vietnam in 2015 -2022: -------------------------------------------------- 22
CHAPTER 3: RELATIONSHIP KOREA-VIETNAM AND
SUGGESTIONS FOR VIETNAM IN ECONOMIC ASPECT. ---- 23
1. Relationship between Viet Nam and Korea: --------------------------------------------------------------------- 23
2. Some suggestions for Viet Nam in economic field. ------------------------------------------------------------ 27
CONCLUSION ------------------------------------------------------- 32 LIST OF TABLES Tran Thi Lan Huong Page 3 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang TABLES CONTENTS 1
Import-Export partner of Korea 2
GNI per capita and GDP of Korea
South Korea’s imports over 2015- 2022 3
proportion of imports in Korea’s GDP
over the period of seven years from 4 2015 to 2022
percentage of goods in the total 5 Korea’import 6 Main Partner Countries
Comparison import of Korea and 7 Vietnam in 2015 -2022 LIST OF ACRONYMS ACRONYMS MEANING HDI Human Development Index VKFTA Vietnam Free Trade Agreement AKFTA
ASEAN-Korea Trade Agreement in Goods RCEP
Regional Comprehensive Economic Partnership L/C Letter of Credit (L/C) Tran Thi Lan Huong Page 4 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang FOB Free On Board CIF Cost, Insurance and Freight OECD
Organization for Economic Cooperation and Development GDP GROSS DOMESTIC PRODUCTS FDI Foreign Direct Investment WTO World Trade Organization EAS Advanced Encryption Standard APEC
Asia-Pacific Economic Cooperation FTA Free Trade Agreement ASEAN
Association of Southeast Asian Nations ODA
Official Development Assistance IMF International Monetary Fund THE OPENING 1.1 The importance of topic:
South Korea is one of the most modern and diverse countries in the world. A
country where green rolling hills and Buddhist Temples meet Seoul, the capital
city, which boasts the latest advances in technology aided by a plentiful
population of almost 10 million people, which accounts for around 20% of the
country’s entire population.
South Korea is a developed country, ranked as the seventh-highest country on
the Human Development Index (HDI) in the Asia and Oceania region. Its
economy ranks as the world’s tenth largest by nominal GDP. Its citizens enjoy Tran Thi Lan Huong Page 5 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
one of the world’s fastest Internet connection speeds and the densest highspeed
railway network. The country is the world’s fifth-largest exporter and eighth- largest importer.
Therefore, Korea economy places an important roles in the world economy map.
In Vietnam-Korea relations, economic cooperation has undergone a long
history. Despite the complicated developments of the Covid-19 pandemic, Korea
continues to hold its position as the largest investor, the second largest ODA,
labor and tourism partner, and the third largest trade partner of Vietnam.
Vietnam and South Korea share the same orientation to strengthen economic
linkages and rules-based free trade in the region, through the removal of import
regulations and strengthening cooperation in the field of tariffs. including the
electronic exchange of certificates of origin on the basis of the Mutual Customs
Agreement, in order to effectively implement bilateral and multilateral
economic cooperation mechanisms, such as the Vietnam Free Trade
Agreement-- Korea (VKFTA), ASEAN-Korea Trade Agreement in Goods (AKFTA)
and Regional Comprehensive Economic Partnership (RCEP).
Economic trade has increased 156 times, from 500 million USD in 1992 to 78
billion USD in 2021. Korea’s accumulated direct investment capital into Vietnam
has always maintained the number one position in the past five years with the
total accumulated capital reached 80.5 billion USD by the end of September 2022.
Vietnam and Korea have many similarities in history, both countries
experienced the period of colonization, war and reconstruction under difficult
circumstances. Vietnam has only implemented economic reforms since 1986
but has already achieved positive results. However, Vietnam still faces a series
of domestic and international issues. By analyzing the economic development
process of Korea, especially the situation of importing goods from 2015 up to
now, it will provide experience for the Vietnamese economy in general and imports in particular. Tran Thi Lan Huong Page 6 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
In fact, the topic “ The importing goods by Korea in period of 2015 to 2022
and lessons for Viet Nam” has been studied by researchers, but not many and
the recent changes of the problem have not been updated. Therefore, it is
necessary to do this topic based on previous datas and researches in order to
contribute to solving current economic problems. 1.2 The research overview:
1.3 The objectives and Missions: a. The objectives:
Based on datas analysising, assessing the current situations as well as
limitations of Korea’s imports of goods in the period 2015-2018, and updated
to 2022. From there, compare and draw lessons about importing for Vietnam in
order to promote effectively resources, enhance strengths and limit as well as avoid the maximum of risks. b. The missions:
The study will carry out these following research tasks to achieve the research purposes:
• Firstly, giving relevant basic theories.
• Secondly, analyzing the datas to show the situation of general economy
and importing goods in Korea in the period 2015 to 2022.
• Thirdly, assessing pros and corns of that situation, outlining the main
solutions proposed by the Korean government.
• Finally, connecting and proposing solutions, economic lessons for Vietnam.
c. Object and scope of the study:
Objectives: Importing goods by Korea Scope of the study: Tran Thi Lan Huong Page 7 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
d. Researching methods
The exercise uses methods of analysis, synthesis and comparison to solve the posed problems.
Data collected from The World Bank Data and some other resources. e. Layout of topic:
In addition to the introduction, the end, the table of contents, the list of
references, the topic is presented in 3 chapters:
Chapter 1: Basic theories of the import
Chapter 2: The South Korea’s imports in 2015 to 2022.
Chapter 3: Relationship between Viet Nam - Korea and suggestions for Viet Nam in economic area.
CHAPTER 1: BASIC THEORIES OF THE IMPORTS 1. Definition:
Importing is an international trading activity, which is the process of exchanging goods
between countries based on the principle of parity exchange for currency as a broker. It is
not a single act of commerce but a system of trade relations in an economy that has both
internal and external organization.
Imports of each country also depend on the income of the resident in the
country and the exchange rate here. If the average income of the people of that
country is higher, the demand for imported goods will also increase accordingly.
Conversely, if the exchange rate rises, the price of imports in local currency
becomes higher, which can impact imports and cause import demand to decrease. Tran Thi Lan Huong Page 8 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
Imports play an important role in a country’s economy, ensuring the stable
development of each country’s key economic sectors and at the same time fully
exploiting the country’s comparative advantages, contributing to the realization
of the national economy. highly specialized in labor and improved the balance of international payments. 2. Characteristic:
• Import of goods from abroad is governed by rules and regulations such
as international treaties and foreign countries, international trade
practices, and national laws in relevant countries.
• Trading methods on the market are diverse and rich with many forms
such as direct transactions, indirect transactions (through
intermediaries), trades at trade fairs and exhibitions.
• Allows to use a variety of payment methods when transacting such as
Letter of Credit (L/C), barter, collection, etc.
• Currencies used for payment when transacting are highly convertible
foreign currencies such as the dollar, British pound, etc.
• Using many different terms and conditions of delivery, but the common
ones are usually FOB, CIF, etc.
• Importing business is an international business with complicated
procedures and long implementation time.
• The essential factors when doing import business include management
qualifications, foreign trade skills, business knowledge, and the agility to capture information.
• Importing goods from abroad is always risky. Therefore, to prevent risks,
it is necessary to buy appropriate insurance for goods. Tran Thi Lan Huong Page 9 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang 3. Classification: • Direct Import
Participating in this form, the buyer and the seller will directly sign a contract
with each other. The terms and benefits in a commercial contract are mutually
agreed upon by the two parties, not bound by an intermediary.
This is the most commonly used form because it is simple and fast. Accordingly,
the importer needs to carefully study the market to determine the product or
service to be imported. Then find the right partner, sign and execute the
contract, invest your own capital, bear all risks and costs in the transaction... • Import of consignment
For the type of consignment import, there is not only the participation of the
buyer and the seller, but also a 3rd party (the intermediary). This form is used
when the buyer hires another unit (entrustment) to stand in for them to import goods.
New individuals or businesses often find it difficult to import goods on their
own, largely due to lack of experience and understanding of international trade,
or lack of legal status. Therefore, entrusting an intermediary unit will help to
import the shipment quickly and smoothly.
It is the responsibility of the trustee to provide information about the market,
prices, customers, conditions related to the entrusted order, sign the contract
and carry out the procedures related to importing goods. export.
With this form, enterprises that carry out entrustment import operations do not
have to invest capital, do not need to apply for quotas, and do not have to look
for partners, prices, etc. In return, the entrusting party will pay a service fee to the recipient. Commission. Tran Thi Lan Huong Page 10 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang • Counter-trade
Countertrade, also known as import for barter, is carried out in parallel with
exports. This form does not use money but uses goods as a medium of exchange.
Goods used for import and export have the same value.
• Temporary import for re-export
Temporary import for re-export is a form of goods brought into Vietnam but not
for consumption but to be exported to a third country for profit. This activity
includes both export and import, the purpose is to collect foreign currency. • Import of processing
With imported processing, the processing party will import raw materials from
the exporter for production according to the requirements of the contract between the two parties.
In terms of nature, the form of processing import and export processing is the
same. The purpose is to process according to the requirements of other countries. 4. Roles:
• Helping to meet people’s domestic consumption needs: Importing goods
from abroad contributes to solving the problem of scarcity of domestic
goods. In case, that country cannot produce or produce but does not have
enough supply for the people, importing goods from outside is the most
optimal way. Because, it both meets the consumption needs of the
domestic people, while ensuring the balance of the economy and sustainable development.
• Helping the commodity market to be more diversified and bustling:
Importing goods from outside into the domestic market helps diversify Tran Thi Lan Huong Page 11 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
the supply for people to choose from. Based on actual needs, they can
compare each product to choose the one that best suits their living standards.
• Elimination of monopoly status: The same product, but many brands
from many countries are "present" in the market, helping to eliminate the
monopoly and self-sufficiency situation as before. Instead, it is a dynamic
market with many opportunities to cooperate and promote the
comparative advantages of each country.
• Creating a "push" to help domestic enterprises "transform": Many
imported goods help people have many choices, but "invisible" creates
competition with domestic enterprises. Faced with that situation,
businesses are forced to update new things, explore and improve product quality to retain customers.
• Improving production levels between countries: Technology transfer
gives many countries the opportunity to expose themselves to the new.
As a result, the level of production between countries gradually returned
to the equilibrium level and did not take too long to change.
• Help promote exports, improve the value and quality of products. At the
same time, increasing the prestige of the country in the international arena.
5. Factors affecting import activities
• Regulations and policies at home and abroad: This is a mandatory factor
that any business participating in this activity must comply with.
Depending on the policies of each country and international, import activities will be affected. Tran Thi Lan Huong Page 12 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
• Exchange rate: This is a factor that affects import and export activities at
the same time. Accordingly, if the exchange rate favors imports, exports
will be affected. Conversely, if the exchange rate favors exports, imports suffer.
• Import tax: This is a factor to generate revenue for the state budget,
protect export development, etc. But if this tax is high, the product price
will be inflated. This directly affects the buying needs of customers. When
they reduce their demand for goods, their import activities are also affected.
• In addition, there are a number of other factors such as import quotas,
conditions of each country, people’s living standards, etc.
CHAPTER 2: THE SOUTH KOREA’S IMPORT IN 2015-2022
1. Overview about South Korea: • Overal
Korea is a country located in the northeast of the Asian continent. The area of
the Republic of Korea is about 100,210 km2 with a population of 51.49 million
people (2018). South Korea is located on the Korean peninsula stretching from
North to South with a length of 1,100 km. Korea has a temperate climate with
four distinct seasons: spring, summer, autumn and winter. Korea has up to 86%
of students pass university, thanks to the high education of most people, the
Korean economy has grown rapidly and has become one of the 4 largest
economic centers in Asia with large corporations developing across the continent. • Socio - economic Tran Thi Lan Huong Page 13 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
Korea is one of the three most developed countries in Asia and is in the Top 10
in the world. This country has many large companies and corporations invading
the world market such as: Samsung, GM Daewoo or Hyundai. South Korea
currently ranks 34th in the world in per capita income. The most developed
industries in this country are: beauty, art, information technology, media,
computer security and tourism.
Koreans are highly regarded for their friendliness, hospitality and sincerity.
They have a highly civilized life with a very unique and interesting culture. The
special thing that you should try when coming to this country is the experience
of sipping a glass of wine with fragrant grilled meat at a sidewalk restaurant,
eating a bowl of seaweed soup on birthday or eating a bowl of hot kimchi soup. on a cold day. • Educations
Korea is a country with the most advanced advanced education in the world and
especially ranked 2nd in the world in literature and mathematics. The cost of
studying in Korea is much lower than in other countries, only approximately
100-200 million/year. In particular, the international student assessment
program - initiated and directed by the World Economic Cooperation and
Development Organization (OECD) currently ranks Korea’s education and
science as the third best in the world. gender and above the OECD average.
2. Republic South Korea’s economy:
South Korea is a developed country, ranked as the seventh-highest country on
the Human Development Index (HDI) in the Asia and Oceania region. Its
economy ranks as the world’s tenth largest by nominal GDP. Its citizens enjoy
one of the world’s fastest Internet connection speeds and the densest highspeed
railway network. The country is the world’s fifth-largest exporter and eighth- largest importer.
The Korean economy is a highly developed mixed economy characterized by
conglomerates owned by wealthy families known as Chaebol. South Korea is Tran Thi Lan Huong Page 14 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
one of the few developed nations that can be avoided. recession during the
Great Depression. The country’s economic growth rate reached 6.2% in 2010
• Currency: Won (KRW) National GDP: $1,554,000,000,000
• Labor structure by occupation include: Agriculture: 4.8% Industry:
24.6% Services: 70.6% ( 2017).
• Unemployment rate is about 3.7% (September 2020) with 11.5% young
unemployed (15 to 24 years old, September 2020)
• Main Industries are: electronics, telecommunications, automobile
manufacturing, chemicals, shipbuilding, steel
• Agricultural products: rice, root crops, barley, vegetables, fruits; cattle,
pigs, chickens, milk, eggs; seafood
• Natural resources: coal, tungsten, graphite, molybdenum, lead, hydroelectric potential
• Major Exports are: semiconductors, wireless telecommunications
equipment, motor vehicles, computers, steel, ships, petrochemicals
• Major Imports are: machinery, electronics and electronics, oil, steel,
transportation equipment, organic chemicals, plastics Picture 1 Tran Thi Lan Huong Page 15 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
Source: Fujihatsu - Fujihatsu Electronic Scales
(according to history.com, ducksters.com, un.org, icc-cpi.int and Wikipedia international news) Picture 2
From 1980 to 2018, Korea’s economic growth and per capita income tended to grow substantially each year.
South Korea maintains diplomatic relations with 191 countries. The country
has also been a member of the United Nations since 1991. Korea has also
hosted major international events such as the 1988 Summer Olympics and the
2002 World Cup Soccer Tournament (2002 World Cup co-hosted with Japan)
and 2011 IAAF World Championships Daegu South Korea. In addition, South
Korea hosted the 2018 Winter Olympics which took place in Pyeongchang from February 9 to 25.
Korea is a member of the United Nations, WTO, OECD/DAC, ASEAN Plus Three,
East Asia Summit (EAS) and G-20. It is also a founding member of the Asia-
Pacific Economic Cooperation (APEC) and the East Asia Summit. Tran Thi Lan Huong Page 16 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
Korea has a number of the following trade agreements: Korea-ASEAN
(Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines,
Singapore, Thailand, Vietnam) FTA; Korea-Australia FTA;Korea-Canada CKFTA
FTA; Korea-Chile FTA; Korea- China FTA....
3. The import activities of Korea from 2015 - 2022: Year Import ($B) 2015 420 2016 396 2017 478 2018 535 2019 503 2020 468 2021 615 2022 731 Tran Thi Lan Huong Page 17 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
South Korea 's imports over 2015-2022 800 700 731 600 615 500 535 503 478 400 468 420 396 300 200 100 0 2015 2016 2017 2018 2019 2020 2021 2022 Picture 3
Source: World Trade Organisation (WTO); Latest available data
The bar chart illustrates the change in the number of South Korea’s imports over
a period of seven years from 2015 to 2022. Generally, it is clear that the number
of imports fluctuated over the period and that in 2022 was highest with 731
billion dollars. In the first four years of the period, the import amount fluctuated
by almost 450 billion dollars. The amount was approximately 420 billion dollars
in the first year, and 396 billion dollars in the following year, which was the
lowest. The highest trade over this time period was around 535 billion dollars
in 2018. For three years later, the trend dramatically increased, rising from
roughly $468 billion in 2020 to $731 billion in 2022. Tran Thi Lan Huong Page 18 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang Pictiure 4
( Source: The World Bank Data)
This line graph depicted the volatility in proportion of imports in Korea’s GDP
over the period of seven years from 2015 to 2022. The first characteristic to
note is that the percentage of imports in Korea’s GDP altered dramatically
during seven years of research. In 2015, the Korea’s imports was 420 billion
dollars corresponding to nearly 21 % of GDP of South Korea. In seven years of
research, 2016 was the year that proportion of imports in Korea’s GDP was
lowest with above 20%. The next two years, this figure surged sustainably and
reached approximately 25% GDP in 2018. However, this percentage quickly
dropped out significantly in 2020 and remained around 22%. It is extremely
surprising as the percentage of imports in Korea’s GDP increased dramatically
in 2021 and reached approximately 27 % corresponding to 644 billion dollars of imported goods.
4. Types of Korea’s import products: Tran Thi Lan Huong Page 19 lOMoAR cPSD| 44919514
International Economics Prof PhD. Nguyen Thuong Lang
467.5 bn USD of products imported in 2020
Petroleum oils and oils obtained from bituminous... 9.50%
Electronic integrated circuits; parts thereof 8.60%
Petroleum gas and other gaseous hydrocarbons 4.00%
Machines and apparatus of a kind used solely or... 3.30%
Petroleum oils and oils obtained from bituminous... 2.70%
Telephone sets, incl. telephones for cellular... 2.60%
Motor cars and other motor vehicles principally... 2.60%
Coal; briquettes, ovoids and similar solid fuels... 2.00%
Automatic data-processing machines and units... 1.60%
Iron ores and concentrates, incl. roasted iron... 1.50%
Source: Comtrade, Latest Available Data
Iron ores and concentrates, incl. roasted iron... 5 1. % 0
Automatic data-processing machines and units... 1. % 60
Coal; briquettes, ovoids and similar solid fuels... . 2 00 %
Motor cars and other motor vehicles principally... . 2 60 %
Telephone sets, incl. telephones for cellular... 2 .60 %
Petroleum oils and oils obtained from bituminous... 2. 0 7 %
Machines and apparatus of a kind used solely or... 3 3. % 0
Petroleum gas and other gaseous hydrocarbons . 4 % 00
Electronic integrated circuits; parts thereof 8 . % 60
Petroleum oils and oils obtained from bituminous... 9.50%
0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00 % Picture 5
The bar chart shows the percentage of goods in the total Korea’import in 2020.
As chart illustrated, petroleum oils and oils obtained from bituminous were the
main imported goods of South Korea corressponding to 9,5% of the total.
Following that was electronic integrated circuits; parts thereof with around Tran Thi Lan Huong Page 20