[News Today] KOREAN FIRMS IN VIETNAM WITH CONCERN

[LEAD]
Concerns are growing in Vietnam as well. Like Korea, it's seeing a significant trade surplus with the United States. Many Korean companies operate there, making the potential impact of tariffs unavoidable.

[REPORT]
Vietnam recorded a 7% economic growth last year, driven by an explosive increase in the nation's exports to the United States.

Vietnam's trade surplus with the U.S. stands at 123.5 billion dollars, the third highest following China and Mexico.

The figure grew more than 18% compared to the year before.

It's also the reason why Vietnam is speculated to be the next target of Donald Trump's tariff war.

Vietnam’s VTV4 Broadcast
Prime Minister Pham Minh Chinh also urged them to closely monitor global developments, especially emerging issues and policy adjustments by countries and major economies to respond with timely, flexible and effective policies.

The problem is the Korean companies doing business in Vietnam.

Many Korean companies contribute to Vietnam's export to America. For instance, Samsung Electronics account for 20% of all Vietnamese exports.

The situation is especially dire for the businesses that import components from China and export finished products.

Ko Tae-yeon/ Chair, Korean Business Association in Vietnam
Companies exporting to the U.S. are looking at the issue seriously and are
assessing the impact on each business.

However, the U.S. could accept Vietnam as a replacement for China as a low-cost goods producer and make suitable compromises in trade negotiations.