The opening of a new container shipping route to Vietnam by Korea will create more favorable conditions for enterprises to increase bilateral export activities.
On May 24, 2021, Incheon Seaport Corporation announced that it had started operating a new container route from Incheon port to ports in Thailand and Vietnam.
Notably, the newest service, called New Korea Thailand, starts at the port of Incheon, passes through several ports in South Korea, Hong Kong and Mainland China before reaching the ports of Laem Chabang and Bangkok in Thailand and ending. ends at Tan Cang Cat Lai port in southern Vietnam.
Vessels on the new service with a capacity of 1,500-1,600 TEU run with a frequency of one trip per week. These ships belong to Korea Shipping Co., Ltd., Chun Kyung Shipping Co., Ltd. and Namsung Shipping Co., Ltd.
Incheon Shipping Group hopes that the new shipping route will contribute to promoting import and export activities between Korea and Southeast Asia.
Previously, in August 2016, Quang Nam province of Vietnam opened the first Chu Lai – Korea sea freight route, connecting Tam Hiep port and Incheon port in Korea.
Notably, Tam Hiep port is located in Chu Lai – Truong Hai port service and logistics center, helping to connect Chu Lai Open Economic Zone and Incheon port. The port allows cargo ships of 20,000 DWT (tonnage tonnage) to enter or to ship 1,000 TEUs, receiving one vessel per week.
The Vietnam – Korea Free Trade Agreement (VKFTA) is promoting bilateral trade and investment relations since it was signed and took effect in 2015. Korea is currently a trading partner in Europe. Vietnam’s second largest Asia after China.
According to Business Korea, exports and investment of Korean companies in Vietnam are continuing to increase. Vietnam has been Vietnam’s third largest export destination after China and the United States since 2017. In 2020, export turnover from Korea to Vietnam reached 48.51 billion USD. In 2020, there are about 3,324 Korean companies doing business in Vietnam and 2,233 companies doing business in China.