Global e-Business Association

The e-Business Studies - Vol. 17 , No. 2

[ e-Business Trade ]
The e-Business Studies - Vol. 17, No. 2, pp.149-173
Abbreviation: The e-Business Studies
ISSN: 1229-9936 (Print) 2466-1716 (Online)
Print publication date Apr 2016
Received 09 Apr 2016 Revised 21 Apr 2016 Accepted 28 Apr 2016

The Study for Collaboration Strategy about Korea’s Overseas Ventures Co. into the Vietnam Market in Manufacture 3.0 era
Kyoung Hee Kim*
*Assistant Professor, Dept. of Global Trade & Management, Shinhan University (

제조업 3.0시대에 베트남 시장으로의 한국 진출기업에 대한 협업전략에 관한 연구
*신한대학교 글로벌비즈니스대학 글로벌통상경영학과 조교수 (


The relationship between the two countries due to enter into force in Korea and Vietnam FTA is becoming more and more closely to join. Trade volume between the two countries has increased every year while more than US exports by 2015 was the fourth exporter. Therefore this study was to analyze more closely the increasing trade with Vietnam, and Korea companies were trying to advance into Vietnam was to analyze that focused on whether to collaborate with local companies in the market.

First of all, Korea and Vietnam FTA was adopted as the first e-commerce agreement with an independent chapter. Thus it was more freedom about electronic authentication. It was able to generate more revenue for the overseas companies that deal through the B2B and B2C.

The purpose of this study was to analyze the case that B2BC company was currently entering overseas. When they wanted to enter the Vietnamese market, this study was to suggest what was the best way to collaborate strategically applied. This study presented a strategic plan between the two countries through the usage analysis, competitive analysis and business case analysis of overseas.


한-베트남 FTA 발효로 인해 양국가간 관계는 더욱더 긴밀하게 맺어지고 있다. 양국의 무역규모는 해마다 증가하여 2015년 기준으로 미국보다 더 많은 수출을 하면서 4위 수출국이 되었다.

본 연구는 이렇게 증가하는 베트남과의 교역을 좀 더 세밀하게 분석해보고 베트남으로 진출하는 기업들이 해당 시장에서 로컬기업들과 협업할 수 있는가에 초점을 맞춰 분석하고자 하였다.

무엇보다도 한-베트남 FTA를 통해 합의했던 전자상거래가 최초로 독립챕터 채택됨에 따라 전자상거랠ㄹ 하는 기업들에게 전자인증의 선택이 보다 자유로워지면서 B2B, B2C를 통해 거래하고 있는 해외진출기업들에게 많은 수익을 창출할 수 있게 된 부분을 다루었다. 즉 현재 해외로 진출하고 있는 B2BC기업들을 사례로 분석하고 베트남 시장을 진입하고자 할 때 협업할 수 있는 최선의 방법이 무엇인가를 전략적으로 제시하였다.

본 연구는 양국가간의 현황분석, 경쟁력분석, 그리고 해외진출기업들의 사례분석 등을 통해 전략적 방안을 제시하였다. 따라서 구체적인 자료를 통해 객관화시킬 수 없었던 연구의 한계를 지적하고자 한다.

Keywords: Korea-Vietnam FTA, Export Competitiveness, Advance Company, Collaboration Strengthen Strategy, B2BC
키워드: 한-베트남 FTA, 수출경쟁력, 진출기업, 협업강화전략, B2BC

ABSTRACT Ⅳ. Strengthen Strategy of Collaboration between Korea Advance and Vietnam Local Company
Ⅰ. Introduction Ⅴ. Summary and Conclusion
Ⅱ. Trade Trends and Industry Structure Analysis of ASEAN and Korea(Focusing on Vietnam) <References>
Ⅲ. Export Competitiveness Analysis and Case study of Korea Advance Company <국문초록>

Ⅰ. Introduction

In November 2004, Korea began FTA negotiations with ASEAN(East Asia Nations 10 countries) for the goal of free trade zone creation, and nine years have passed since the Korea-ASEAN FTA's entry into force in 2007. Korea and Vietnam FTA was entered into force in December 20, 2015. AEC(ASEAN Economic Community) 1), ASEAN Economic Community, continuously was launched the official in December 31st. As a result the investment environment of ASEAN countries was improved, Korea needs a strategic approach to expand engagement with ASEAN in many directions.

Especially when looked around the average economic growth rate of 3.2% of the world due to the global financial crisis, China is also the situation that led a sustained economic growth rate decreased, and the ASEAN 10 countries maintain an average growth rate of 5.9%, while progress ‘growth alone’ 2).

ASEAN was equivalent to 8.7% of the world's population to total population, 570 million people. While ASEAN was accounted for 6.9% of trade and 3.3% of global GDP, the proportion of trade with Korea also was increased year by year accounting for 12.6% by the end of 2015. Therefore, because ASEAN has considerable charm not only 'Post China' as the production base but also an emerging consumer market for emerging, Korea should be seeking a strategic approach to expanding into ASEAN by utilizing a success pattern entered the Chinese market.

This study examines the trade trends between Korea and ASEAN member countries, explores the major export items of each Member State between Korea and ASEAN. In addition, the Vietnamese overseas company in Korea select Vietnam that are engaged in the most dynamic market opening policies one of ASEAN member countries, and to analyze the effects of the economic relations between the two countries due to Korea and Vietnam FTA enters into force. And I want to try a competitive analysis between Vietnam and Korea and Vietnam markets SWOT analysis. Finally, I look at the success cases of overseas companies in Korea, when these companies have entered the market in Vietnam, I would like to present a strategic plan can collaborate with Korea companies.

Ⅱ. Trade Trends and Industry Structure Analysis between ASEAN and Korea(Focusing on Vietnam)
1. Trade Trends between Korea and ASEAN

A huge market, ASEAN, has the total population of about 570 million people and a total area of about 4.5 million ㎢ was expected to increase the ASEAN trade volume largely due to entry into force of the FTA with Korea in the 1st of June, 2007, but were still trading at a low level when compared with other countries signed the FTA. However, the current trade volume between Korea and ASEAN have steadily increased, by 2011, the trade volume compared to 2010 increased by 2 times.

Above all, when the world was faced on the economy panic with the global financial crisis in 2008, though Korea and ASEAN trade in 2009 has been record minus exports including import –16.8% and export –16.8%, they have risen steadily with recovery again in 2010.(< Figure 1>) Thus, the cause of trade volume between Korea and ASEAN increased steadily will be influenced by elements of economic growth of ASEAN, a FTA enters into force, and Korea Wave(Hallyu)

<Figure 1> 
Trade Trends between Korea and ASEAN

source :

The average growth rate of the world economy, among 10 ASEAN countries shows that the economic growth rate of 3%, on average, has recorded 5% growth, while maintaining ‘growth alone’.(< Figure 4>) In particular, as there is average 5~8% economic growth of CLMV countries refer to Cambodia, Laos, Myanmar, Vietnam, it is expected that these countries will grow economic growth more and more as accelerated market opening in recent years.

<Figure 2> 
Trends and Outlook of Economic Growth in each ASEAN

footnote : f is expected value.

source : Kim Jeongdeok·Kim Nayoung(2014.12), p.10.

<Figure 3> 
Share of Vietnam Import Market in National

source :

<Figure 4> 
B2C sales share (May, 2014 criteria)

source :

Trade volume with ASEAN countries, but varies from 10 countries, has shown a trend of increased overall. In particular, trade volume between Vietnam and Korea increases quite sharp in imports and exports. Their volume showed a 24.2% growth rate on the basis of the end-December 2015, and became the fourth exporter after China, the US, and Hong Kong.

Vietnam's trade with Korea is increasing rapidly. Export was a 9.7billion$ export in 2010, and then in 2013, was increased to about 2.19 times by $21.1billion and in 2015, the increase was $27.8billion and 24.2% year-on-year. Of course, it increased approximately 2.16 times, while imports were $3.33 billion in 2010 record $7.18 billion in 2013 in the import with Vietnam. Imports were $9.81 billion and increased by 22.7% year-on-year in 2015.(< Table 1>)

<Table 1> 
ASEAN Regional Trade Trends in Korea (unit: One hundred million$,,%)
Nation Export annual growth Import annual growth
2012 2013 2014 2015 2012 2013 2014 2015
Malaysia 77.2 (23.1) 85.9 (11.2) 75.8 (-11.7) 77.5 (2.0) 0.1 98.0 (-6.4) 111.0 (13.3) 111.0 (0.0) 86.1 (-22.4) -4.2
Vietnam 159.5 (18.4) 210.9 (32.2) 223.5 (6.0) 277.7 (24.2) 20.3 57.2 (12.5) 71.8 (25.5) 79.9 (11.4) 98.1 (22.7) -44.5
Indonesia 139.6 (2.9) 115.7 (-17.1) 113.6 (-1.8) 78.7 (-30.7) -17.4 156.8 (-8.9) 131.9 (-15.9) 122.7 (-7.0) 88.5 (-27.8) -17.4
Thailand 82.2 (-2.8) 80.7 (-1.8) 76.0 (-5.9) 63.6 (-16.3) -8.2 53.5 (-1.1) 52.3 (-2.3) 53.5 (2.2) 48.5 (-9.2) -3.2
Philippines 82.1 (11.9) 87.8 (7.0) 100.3 (14.2) 83.2 (-17.1) 0.4 32.8 (-8.0) 37.1 (12.9) 33.3 (-10.1) 32.5 (-2.4) -0.3
Myanmar 13.3 (99.6) 7.1 (-47.0) 8..0 (13.5) 6.6 (-17.5) -20.8 3.5 (17.6) 4.9 (38.9) 5.8 (18.9) 5.1 (-12.8) 13.4
Singapore 228.9 (9.8) 222.9 (-2.6) 237.5 (6.6) 150.1 (-36.8) -13.1 96.8 (7.9) 103.7 (7.2) 113.0 (9.0) 79.4 (-29.7) -6.4
Brunei 1.1 (-81.0) 1.0 (-8.4) 2.9 (183.5) 2.7 (-6.2) 34.9 19.8 (-1.4) 19.4 (-2.4) 12.9 (-33.2) 9.7 (-25.1) -21.2
Laos 1.7 (6.9) 1.9 (13.3) 1.6 (-16.6) 1.7 (9.2) 0.0 0.1 (162.3) 0.1 (10.0) 0.2 (44.5) 0.3 (57.6) 44.2
Cambodia 5.9 (31.6) 6.2 (3.6) 6.5 (6.6) 6.5 (-0.3) 3.3 1.3 (44.7) 1.4 (7.9) 1.9 (42.3) 2.2 (11.6) 19.2
footnote: ( ) shows year-on-year growth

Looking at the export products of Korea and the ASEAN Member States based on MTI 4 units, as follows: 10 countries members are doing trade with Korea as the center of each different item. In particular, unlike the ASEAN countries, Vietnam is mainly IT-related products exports including wireless communication equipment parts. Other Malaysia, Indonesia, Thailand, the Philippines, Singapore, Brunei, etc. are actively petroleum products and intermediate products export. Exports of textile products and freight cars are made by Cambodia, Myanmar including the recently launched open.(< Table 2>)

<Table 2> 
ASEAN regional major export item in Korea(2015year) (unit: million$,%)
rank Malaysia Vietnam
item export growth share item export growth share
1 gasoil 1,272 305.2 16.4 Part of Wireless Communication Apparatus 4,109 88.0 14.8
2 integrated circuit semiconductor 817 19.6 10.6 integrated circuit semiconductor 2,591 -0.5 9.3
3 steel structure 380 865.5 4.9 flatdisplay 1,129 179 4.1
4 flatdisplay 325 -45.6 4.2 synthetic resin 1,110 -6.5 4.0
5 other fine chemical material 302 -6.6 3.9 knitted fabrics 977 -0.1 3.5
rank Indonesia Thailand
item export growth share item export growth share
1 petroleum spirits 1,041 -15.0 13.2 hot rolled sheet and strip 479 -23.2 7.5
2 gasoil 831 -66.4 10.6 synthetic resin 368 -8.9 5.8
3 knitted fabrics 576 -10.0 7.3 galvanized sheet and strip 282 -19 4.4
4 synthetic resin 424 -26.2 5.4 integrated circuit semiconductor 254 5.5 4.0
5 cold rolled steel and strip 222 -28.2 2.8 cold rolled steel and strip 210 3.6 3.3
rank Philippines Myanmar
item export growth share item export growth share
1 integrated circuit semiconductor 2,686 -11.2 32.3 heavyequipmentforco nstruction 73 -39.0 11.1
2 gasoil 557 -62.4 6.7 other automobile 46 -17.8 7.0
3 petroleum spirits 485 -52.0 5.8 knitfabrics garments 41 -7.3 6.2
4 low grade processing copper 238 -24.6 2.9 knitted fabrics 36 70.9 5.5
5 condenser 211 26 2.5 motor vehicles for the transport of goods 30 -40.2 4.5
rank Singapore Brunei
item export growth share item export growth share
1 integrated circuit semiconductor 3,890 -13.5 25.9 vessel 198 -3.4 72.8
2 gasoil 3,048 -57.8 20.3 passenger car 31 -51.1 11.4
3 vessel 2,789 -47.9 18.6 steel pipe and tube 8 2600.4 2.9
4 petroleum spirits 869 -59.4 5.8 steel structure 6 232.2 2.2
5 jet fuel or kerosene 709 20.1 4.7 motor vehicles for the transport of goods 4 448.1 1.5
rank Laos Cambodia
item export growth share item export growth share
1 passenger car 68 0.1 40.0 knitted fabrics 145 1 22.2
2 motor vehicles for the transport of goods 36 -15.6 21.2 motor vehicles for the transport of goods 79 3.3 12.1
3 primemover 20 716.8 11.8 other made-up textiles 56 -16.0 8.6
4 part of automobile 15 18.8 8.8 low grade processing aluminum 55 9.4 8.4
5 heavyequipmentforc onstruction 4 -22.9 2.4 beverage 46 30.9 7.0
footnote: MTI 4 code

Therefore, this study explores Vietnam that selected as major country among the 10 ASEAN countries recently came into force on the FTA with Korea The select reason of Vietnam is because Vietnam increased steadily the average economic growth rate of 6% over the past 10 years. The relationship with Korea is also quite favorable. Because above all, it is taking an open external policy, it has a suitable environment for Korea companies to enter.

2. Vietnam Market Analysis in ASEAN
1) Relationship between Korea and Vietnam

Vietnam, the 24 years since diplomatic ties with Korea, is the fifth largest export volume among ASEAN countries. Economic growth in 2015 was 6.2%, and 6.7% in 2016 is the goal. Looking at the income share of the Vietnamese market by country, China is the largest market by 29.6% on the basis of October 2015, and it can be seen that Korea is growing annually the market size by 16.8% in Vietnam market.(< Figure 5>)

Relations with between Korea and Vietnam settle goods concessions, services and investment, etc in December 2014 and contract sustainable FTA, at the same time go into effect FTA in December 20, 2015 later one year, Vietnam has emerged as the first trading partner among ASEAN member countries. Korea and Vietnam decided not to impose a tax step by step for up to 15 years due to the FTA enters into force. Korea has opened the 499 items, including tropical fruits, garlic, except for rice. Vietnam was opening an additional 272 items, such as car parts, cosmetics, home appliances, cars.

Above all, Korea and Vietnam FTA has included an e-commerce as an independent chapter for the first time, it has agreed to a permanent duty-free explicitly for electronic transmission. 3) And in the electronic authentication and signature, we agreed to do efforts that each party adopted or maintained a law to allow that could voluntary choice electronic means of authentication. It was also reflected the substantive elements such as the online consumer protection, privacy, and paperless trading, etc as non-mandatory provisions.(Ministry of Trade, Industry and Energy, 2015.12)

Due to Korea and Vietnam FTA enters into force, we expect that most of the export products to be open in Vietnam can bring the effect of increasing exports to Korea's small and medium-sized businesses. That is, over 83.3% of Korea companies outlook optimistically the FTA effect for Korea and Vietnam.(KOTRA, 2015. 12)

2) SWOT Analysis of Vietnam Market

Vietnam is a situation in which economic growth steadily increased from 2000 to the end of 2015, the future is representative of the ASEAN countries are expected to grow. Vietnam implemented đổi mới policies (Doi Moi; meaning ‘renew', ‘renewal' in Vietnamese) in 1986, Vietnam was a Communist who accepted Vietnamese market economy was open-door policy at the time. While these đổi mới policy newly was introduced, recently Vietnam would reached their way up once again. Above all, it improved the foreign investment environment and created a business-friendly environment and mitigate or eliminate various regulations for economic growth. And Vietnam is also becoming increasingly tight relations with Korea, attempting various types of open-door policy such as AEC launched and TPP, EU FTA settlement externally.

This Vietnam has a great potential. The Korea International Trade Association analyzed the Vietnamese market more specifically through the SWOT analysis.( SongSongYi, 2013.9) First, it may be acting as a strength of economic growth, reducing poverty and increasing middle class, the productive population growth, and geographic proximity, etc. Vietnam is a country that has been kept steady economic growth. It was recorded a economy growth rate beyond the current annual average of 6% or more from 2010 to 2015. In addition, while the poor population to survive up less than 1.25 dollars in 1 day purchasing power parity basis decreased 57.8% between 1990 and 2008, the middle class population that consumed one days 2~20 US dollars increased 57.4% during the same period. The productive population share of Vietnam was 70.0% by 2010 basis, and to the peak 70.8% in 2015, we predict to reach at 69.5% if it became 2030 year. Above all, it is geographically located close as Laos, Cambodia, China, and then the sea maritime transport to the Southeast Asian countries become actively connected and exports facilitate.

Next, it was acting as a weakness may be such as the current account and fiscal deficits, inflation and Dong(VDN) weak, weak infrastructure, high corruption index. Vietnam has maintained a current account deficit since 2002, as it has converted into surplus in 2011. And it was increased surpluses with the trade balance in 2012. In addition, it has a limit to the aggressive revitalization policies such as exchange rate increases and interest rate cuts for consumer inflation rate increases. And Vietnam also is still a vulnerable state for infrastructure such as electricity, roads, railways, harbors, and taxation and investor protection is also in the weak conditions. That is, according to the World Bank's business environment assessment, as Vietnam has vulnerable infrastructure equivalent for 99 ranks, logistics costs account for 25% of GDP. First of all, as corruption in the public sector is their routine work, Corruption Perception Index released by the International Transparency Organization has 31 index and it is equivalent for the lowest 123 rank among the 176 countries, so it will be act as hinder factor to your company's exports and investment expansion.

The following is about opportunities. It may include increasing foreign investment, privatization of state-owned enterprises and financial liberalization, and urbanization progress, and join TPP, etc. Vietnam has scored a profit of $229.9 billion in total 14,988 cases from 1988 to 2011 continued to increase foreign investment. When the investor investing in Vietnam led by amount, Japan is top foreign investor and Korea and Taiwan followed from then on. Manufacturing investment is accounted for the largest share by sector, and real estate, tourism (hotel and catering), and construction has followed the next. Recently, Vietnam is in the process of not only the privatization of state enterprises but also bank restructuring. there is a growing demand for infrastructure investment in various sectors such as electricity, water, gas, telecommunications and logistics are expected to advance urbanization. And if the TPP negotiations that involved 12 countries including the US, Japan will entry into force in the future, our companies advance into ietnam are expected to be settled free exports to more diverse countries.

<Table 3> 
SWOT Analysis of Vietnam Market
Strength Opportunity
· Economic growth - an annual average of 7.1%
· Poverty reduction and increasing middle class
· Productive population increase
· logistics competitiveness due to geographical proximity
· Increase in foreign investment
· Privatization of State-owned enterprises and financial liberalization
· Demand increasing of Infrastructure development according urbanization progress and the size expansion of the EDCF* of our government
· Expansion of market access to the TPP into force
Weakness Threat
· Current account and fiscal deficits
· Dong Currency depreciation and inflation
· Weak infrastructure
· High corruption index
· Foreign capital outflow due to the implementation of the US exit strategy
· Surface as a production base based on the relative low wages in emerging countries
footnote: EDCF: Economic Development Cooperation Fund)

Finally, it may be mentioned that the threat is such as the implementation of the US exit strategy, transfer into various emerging economies of the production base as to increase of the labor costs. At the time that the volatility of international financial markets is expanding, Vietnam will also not an exception. But Vietnam was 28.3% of GDP in the debt ratio by end-2012. Rather than short-term debt it consists of long-term concessional loans. Foreign exchange reserves also increased to a current account surplus expected to come you are better than other emerging economies. And while lower labor costs in Vietnam are based on cheap labor achieving economic growth the center of labor-intensive industries such as textile, clothing and footwear, Myanmar, Cambodia, etc. has the relatively low labor cost in Vietnam, so it is more likely that foreign-invested enterprises are migrating to these countries.

Ⅲ. Export Competitiveness Analysis and Case study of Korea Overseas Ventures Co.
1. Export Competitiveness Analysis between Korea and Vietnam

To look at the export competitiveness between Korea and Vietnam, it was calculated by item exports in Korea and Vietnam. From 2010 to 2015, which it can be seen rising steadily for a particular item. Looking at the major items in the exports share, there are including pyrotechnic, a textiles, steel and metal products, electronics, and machinery and precision instruments.

In the case of pyrotechnic, as cosmetic ingredients are included into items group, Vietnam cosmetics market will be booming, because annual sales was reached $64 million in 2012-2014. In addition, in the case of textiles and steel and metal products, Korea companies via Vietnam enterprises for investment has made a change slowly from the low-wage labor-intensive industries such as textiles center to high value-added industry. The share of textile exports was 16.07% in 2010, but it decreased by 9.58% in 2015. Similarly, steel and metal products exports also was 19.22% in 2010 and decreased to 10.41% in 2015. However, in the case of electrical and electronic products, export ratio was only 13.55% in 2010. This exports share increased noticeably to 42.87% in 2015. While increasing the consumer electronics market and the computer and semiconductor market briskly, exports share for Vietnam in Korea is also expected to increase.(< Table4>)

<Table 4> 
Export share of industry item between Korea and Vietnam (unit: million$,%)
2015 2014 2013 2012 2011 2010
Vietnam total export amount 27,771 22,352 21,088 15,946 13,465 9,652
Agriculture and Fisheries. Food (01-24) 1.46 1.68 1.76 1.88 1.87 1.52
Minerals and cement(25-27) 1.33 2.88 3.94 7.61 8.29 8.82
Pyrotechnic(28-39) 10.62 12.27 11.59 12.46 13.21 14.81
Rubber and tires(40) 0.52 0.72 0.71 1.15 1.45 1.23
Leather and fur(41-43) 0.79 0.98 0.90 0.94 0.82 1.10
Wood and paper products(44-49) 0.74 0.86 0.88 0.98 0.98 1.16
Textiles(50-63) 9.58 12.09 11.77 13.04 14.59 16.07
Shoes(64) 0.31 0.39 0.38 0.40 0.52 0.63
Clothing accessories (65-67) 0.09 0.12 0.09 0.09 0.08 0.10
Non-metallic mineral products (68-70) 0.45 0.24 0.22 0.16 0.18 0.22
Precious metals(71) 0.10 0.13 0.12 0.15 0.22 0.65
Steel and metal products(72-83) 10.41 12.33 11.37 13.29 17.28 19.22
Electrical and Electronics(85) 42.87 38.02 40.26 34.13 24.13 13.55
car(87) 5.36 4.45 3.10 3.68 7.04 8.98
Rail vehicles and aircraft (86, 88) 0.00 0.00 0.00 0.01 0.02 0.02
Marine(89) 0.02 0.11 0.04 0.01 0.02 0.05
Machinery and precision instruments (84, 90, 91) 14.75 11.97 12.15 9.26 8.39 10.86
Furniture, musical instruments and weapons (92-94) 0.27 0.32 0.28 0.35 0.39 0.33
Toys, etc.(95-97) 0.34 0.43 0.41 0.42 0.50 0.70
footnotes 1) HSK 2 code
2) ( ) code number is classification number
source:, K-Stat, 2016

The high items of export ratio is pyrotechnic items, textiles, steel and metal products, electronics, and machinery and precision instruments. In response, it also was put into force trade specialization index(under TSI called) 4) between Korea and Vietnam for export competitiveness analysis.

Through the TSI analysis, exports high-items can be seen that Korea is specialized in exporting Vietnamese exports. In the case of textiles, it seemed a specific export development in 2010 as a time of 0.31, but while the Vietnamese market changes over time in a high value-added industry, textile appeared to be no longer a specific export items. In other words, in 2014 and 2015 it was drawn close to zero index values as each 0.01 and -0.01, which means that also import and export is in balance in TSI. Thus, in the case of textile it can be seen that industry intra-industry trade made actively.

2. Case study of Korea Advance Enterprises

Overseas companies in Korea are increasing every year. In particular, while IT develops, advance companies to the overseas is increasing, that is B2BC companies are utilizing online. In the middle, I select a B2C company that shows the recent good performance. And I want to analyze the success strategies through overseas advance cases.

First, 'Nanninggu' company seize 71% in the Chinese market, that is a leading fashion clothing suppliers. This company did business in domestic for 10 years to the investment costs 3million won, and then it is the case that sales increase continuously to open online store.

<Figure 5> 
Abroad Total Sales compared with increase trends in B2C Transaction Value (Own Company Mall)

source :

company name Contents Success Factors Enter the country
Nanninggu · 2006 online store open
· June 2015, domestic members is 79.2 million
· 2013, store in mall the same time to the form such open market and social commerce including B2BC platform '", China VIP, MarySchur, and Xuning mall
· More than 70% of overseas sales generated in China
· The use of electronic money than credit card reflects a high degree characteristic plan
· The suction power of the name of ‘nanninggu’
- Get inspired motif Running Shirt - In the online sales 'naming' is a good product and the eye-catching shopping mall configuration is important
· The power of content to maximize the concept
- Simply highlight the image of the mall to sell a style other than the mall selling clothes
· Tongkeun Sale "Guzman Day 'event - Conduct regular discount events
- Respond quickly for messenger that the local client used to return and exchange prevent
China, the United States, Japan, Taiwan, Hong Kong

The second is the global open market, while overseas professional handicraft mall 'Soave' companies operating abroad are mainly the United States and Europe. Soave did the first launching in July 2014 has been manufacturing the Baby items and combined wholesale and retail sales. Soave began its business around the online channel, The company has produced 'only one' product extends out into the open B2C platform like Etsy Market Mall. Etsy was established in 2005 and is the world's 200 countries, the seller is a member by 2014 unique visitors, only 2,200 people, has grown into a professional specialized Mall amounting to $ 1 billion 93 million for annual sales. Soave did business the domestic demand and exports 80 to 20 in the second half-year basis in 2014, it is a situation that is gradually increasing overseas B2C turnover.

<Figure 6> 
Domestic and Export Share(Based on the second half of 2014)

source :

<Figure 7> 
Foreign B2C turnover increased trend (June 2014 based on)

source :

company name Contents Success Factors Enter the country
Soave · Fabric production sales Baby manner of "hand-made", "custom-made" type
· 'Only One' production
· Company grew into government support programs
· Starting an online channel Etsy is an open market, utilizing specialized perfect Soave
· May have slow. Our concept is right!
- To select and follow the steps the concept of the market with match Soave, should do market expansion
· Containing a qualitative, humane Marketing
- the seller and the buyer must communicate the process and propose a new distribution paradigm to collaborative consumption
- International Fair, leveraging the power bloggers through offline sales process
The United States, Europe and other regions outside

As a third above to Welinks companies, this company was starting a business on one's SoHo businesses, and then was selling outstanding products in Korea through global sites such as eBay, Amazon, Q10, Rajasthan, etc. and doing also the hub of global trade. In other words, as a global seller, it was the first market in Singapore, was solved by WeLinks alone up ranging from product sourcing, registration, customer service, packaging, shipping from market research. Since the major cosmetics products through a global open market and Southeast Asia market, it was aimed to increase sales.

<Figure 8> 
B2C Selling Shares

source :

<Figure 9> 
Direct SoH0 Mall Status

source :

company name Contents Success Factors Enter the country
Welinks · December 2008 launch of the first direct overseas B2B business area broadened the activities to find a trade buyer in each country.
· The first sales was Q10 Singapore
· B2C sales by overseas as major products, cosmetics
· Continue to promote the promotion via the blog and SNS
· Raised the exposure to many commodities listing.
- Take advantage of the scheme attracting visitors come to the mall to register the product in many categories
· Reporting to the future, select Southeast Asian markets
- Although starting an e-commerce in Europe, after the United States, recognizes the trend is flowing into emerging markets of Southeast Asia
· Select a friendly solution to the consumer
- It is important that provides a familiar environment for foreign consumers such as access routes for international shopping malls or page composition, layout, etc.
United States, Japan, Indonesia, Southeast Asia

Fourth, this company stored in the Kmall24 the online shop operated by the Korea International Trade Association, which produces the pillow as a “GeoClavices” entered into Global B2C market. Since the first launch in 2014, has increased product sales year by year to enter the United States, China, Japan, Australia, and Vietnam.

<Figure 10> 
Domestic and Exports of GeoPillow

source :

<Figure 11> 
Geo Pillow annual export earnings

source :

company name Contents Success Factors Enter the country
GeoClavice · Infant pillows, while manufacturing companies enter the global B2C market through Kmall24
· Pillows, production of the new features is the fusion of ICT
· Run through the Kmall24 KITA in exports that operates as $ 500,000 goal
· Safe and comfortable! He moved the hearts of mothers.
- Fixed a problem with the product and the consumer, that is, the points that made your success to the best environment
· Patented technology! Implementing a difference
· Cool and mild! Focus on Functional Materials
US, China, Japan, Australia, Vietnam

Fifth, the first was launched in June 2011. Korea official seller on eBay is 'Ltd. Geotech' entered the United States, China, Russia and Europe. The company was acquired for 'Titanium sellers' awarded to the best seller. And it had revenues of 2.7 billion won a year after the 2010 start-up.

If the competitiveness of Geotech will come into the sales commission from the company, doing market research through various web, it stores in the possible model of screening a priority after confirm the international recognition and popularity. In particular, four countries including Australia, Britain, Germany and the United States build logistics hubs, less shipping charge and increased the competitiveness of goods sold.

<Figure 12> 
Regional Sales Share of eBay hubs path(by end of 2014)

source :

<Figure 13> 
B2C market sales trend by year

source :

company name Contents Success Factors Enter the country
Geotec ㈜ · June 2011, was first launched, wholesale and retail trade, consulting service sector
· Products are sold abroad, take advantage of the online B2C market IT products such as monitors, black box
· Unobstructed communication with the company motto, customers, and that support successful business and business-to-business companies
· Thorough analysis of consumer culture and platform policy
- Thorough analysis of the platform policy, consumption patterns identify of the product buyer
· Differentiated marketing strategy is essential
- Differentiated marketing strategy is essential in overseas markets online
· The key to success is practice customer satisfaction
- The success of the B2C market has finally secured a regular, loyal customers
US, China, Russia and Europe

As described above, I looked at the success stories of companies that were mainly among Korea's overseas corporate B2B, B2C. Common among these companies was that they were entered the global market by domestic companies with overseas direct or inverse form after the foundation was harden. And major sectors of overseas enterprises is different from one country to advance, but it was common to clothing, cosmetics, etc. In addition, we actively utilize an online platform, customers can collect enough information about the trends in the country and entered government regulation out to develop marketing strategies.

Ⅳ. The Plan for Collaboration Strategy about Korea Overseas Ventures Co. into the Vietnam Market
1. Coherence between Korea and Vietnam

Korea and Vietnam announced a joint declaration in August 2001, that was “comprehensive partnership of the 21st century between Korea and Vietnam”. This was suggested that Korea and Vietnam was expanded exchanges and cooperation away from the traditional relationship-oriented economy in various fields such as political, military, culture, education, the arts, media, academic and tourism. Since the agreement was to upgrade relations with Vietnam for a 'strategic cooperation partnership' in January 2009, FTA with Vietnam came into force in December 2015.

Due to Korea and Vietnam FTA force, this agreement was signed the gradual elimination of tariffs for the longest periods, 15 years. The agreement agreed that it permanently implemented the duty-free tariff for the electronic transmission by adopting e-commerce as independent chapters in first FTA. As a result, when Vietnamese transactions parties wanted to promote electronic transactions in e-commerce form, they were able to a broad trade, while the duty-free tariffs was applied.

From this point, while Vietnam was facing a second peak by implementing đổi mới policy, and externally conducted an aggressive foreign direct investment(FDI) attraction policies. In other words, FDI who record $ 14.7 billion in 2011 was to attract up to $ 20.24 billion as of the end of 2014, FDI enterprises accounted for 68% of total exports.

<Figure 14> 
Vietnam's economic growth & forecas

source: IMF WEO(2015.10) recited.

<Table 6> 
Vietnam key economic indicators
2012 2013 2014 2014
nominal GDP (billion$) 156 171 186 199
GDP per capita 1,753 1.902 2,051 2,171
Economic growth(%) 5.25 5.42 5.98 6.50
Inflation (%) 9.1 6.6 4.1 2.2
Key interest rate(%) 9.0 9.0 9.0 9.0

In addition, the new leadership of Vietnam in 2016 said it would make up a favorable business environment, and maintain an open stance including foreign investment for economic growth of Vietnam. Yet this seems to be expanding bilateral cooperation in the center of economy environment because Vietnam is favorable in relation to Korea. Therefore, Korea will have made consistently a strategic approach to maintain close ties with Vietnam as it is now.

2. Is it established win-win with local company, or is expansion of our business?

As we have seen in the < Table 4>, it has been shown that exports share to Vietnam of Korea was increasing year by year. The main items were higher in exports share such as steel and metal products, electronics, machinery and precision instruments including pyrotechnic. On the other hand, in the case of petroleum products, when they was compared with 2010, they have reduced exports by 40% in 2015, and it did not even showed high export ratio, like cars.

Also took a look through TSI analysis of < Table 5>, items that it had higher exports share were also derived from high value in TSI. In other words, while Korea had specialized exports in Vietnamese market for these items, they were expected a consistently high export share.

<Table 5> 
Trade Specialization Index of industry item between Korea and Vietnam
2015 2014 2013 2012 2011 2010
Agriculture and Fisheries. Food(01-24) -0.39 -0.47 -0.37 -0.48 -0.49 -0.55
Minerals and cement(25-27) 0.17 0.30 -0.14 0.07 -0.03 0.03
Pyrotechnic(28-39) 0.84 0.85 0.85 0.84 0.88 0.90
Rubber and tires(40) 0.27 0.25 0.14 0.17 0.17 0.07
Leather and fur(41-43) 0.22 0.27 0.36 0.38 0.32 0.39
Wood and paper products(44-49) -0.27 -0.31 -0.15 -0.10 -0.10 0.02
Textiles(50-63) -0.01 0.01 0.06 0.13 0.17 0.31
Shoes(64) -0.72 -0.70 -0.65 -0.65 -0.56 -0.44
Clothing accessories (65-67) -0.24 -0.12 -0.10 -0.12 -0.05 0.04
Non-metallic mineral products (68-70) 0.02 -0.03 0.06 -0.18 -0.08 0.15
Precious metals(71) 0.36 0.62 0.65 0.67 0.75 0.90
Steel and metal products(72-83) 0.76 0.75 0.75 0.78 0.79 0.81
Electrical and Electronics(85) 0.62 0.72 0.77 0.81 0.77 0.62
car(87) 0.92 0.92 0.92 0.90 0.95 0.97
Rail vehicles and aircraft (86, 88) -0.07 -0.68 0.08 0.75 0.88 0.88
Marine(89) 0.78 0.72 -0.49 0.47 0.08 0.85
Machinery and precision instruments (84, 90, 91) 0.69 0.73 0.81 0.74 0.79 0.87
Furniture, musical instruments and weapons (92-94) -0.55 -0.53 -0.50 -0.43 -0.42 -0.51
Toys, etc.(95-97) 0.27 0.47 0.55 0.54 0.56 0.65
footnotes 1) HSK 2 code
2) ( ) code number is classification number
source:, K-Stat, 2016

Their items in processing steps were increasing in import and export between Korea and Vietnam such as the electric and electronic, steel and metal, machinery and precision instruments. In fact, imports share in the processing step of Vietnam were $ 69.9 billion in 2009, and then increased to $ 147.8 billion in 2014.

In these circumstances, household electric companies advancing into Vietnam will review whether the local companies were possible delivery first of all when they get electrical and electronic components, but the next they should consider overseas companies advancing into Vietnam. The problem is the question of whether Vietnamese local companies can meet the quality and deadlines to the level that our companies were requiring. Therefore, the amount is likely to be supplied by local advance Korea manufacturers.

If local companies do not match up to the level that Korea companies were required in future, it will be expected that the collaborate companies of Korea will expand in Vietnam. Currently as Korea company was Samsung Electronics that enter into Vietnam, this company was accompanied with 60 partners. The textile and apparel companies were also entering to a cluster form. CJ also has nine production affiliates, and reap synergies and advance together in the distribution and service sectors.( KITA, 2015)

3. Possibility of Human Resource Exchange

As Vietnam is a young country, a productive population is increasing year by year. But Korea has occupied the highest ratio among OECD countries entering a super-aged society. In addition, as the recession has accelerated increase in the number of workers to be employed in the country, but has shown a phenomenon that does not significantly increase the actual employment rate. Therefore, it must also be to discharge in place the considerable human resources as well as global human resources development at the national level. In this dimension, there is a need to analyze the possibility of exchange the human resources with Vietnam.

In order to attract Vietnamese global talent, Korea company is proceeding with the Vietnam local workforce development programs. For Intel, as the local entry by enterprises, because of the lack of skilled workers in the semiconductor industry, Intel had put into effect commission program of Vietnamese labors into Portland State University that its infrastructure was well established training program. Also it established the University for the training of professional personnel Vietnam's largest ICT companies in the FPT.( KOTRA, 2013.12)

Therefore, in order that Korea companies also attract high quality talent to Korea, in cooperation with the Vietnamese government and companies will have to share the status of personnel demand. Best of all would be operating as a systematic personnel development programs. And Vietnamese entering companies of Korea who must perform various systematic human resource development programs for attracting local talent. We must consider on ways that Korea's excellent workforce can be supply or enter into the Industries belong to attract talent to promote in Vietnam government.

4. How to enter into open B2BC Market

It was the first e-commerce adoption in Korea and Vietnam FTA force. It means that the market is open in the free online trade with Vietnam. Because it does not impose a duty in online, B2B, B2C trading partners will be able to trade freely when autonomously select the electronic means of authentication.

Like the case mentioned above, the company currently trying to newly enter into overseas are online most of the first launch. The company were made the mall in the form of B2BC platform, open market, and social commerce, etc. and advanced around the world, but not yet been made to actively trade with Vietnam because of vulnerable infrastructure.

Therefore, when companies start the first launch from abroad, or companies can try the overseas expansion in basis of domestic demand, if there is such as platforms such as Kmall24 of KITA they will be much easier to advance overseas. “Hanse yes 24 Holdings” had entered the Vietnamese have had as a production base in Vietnam has a favorable location. Announcing this in a favorable location for companies seeking overseas expansion of Korea aggressively, it will be to advance to third markets as well as the domestic market .

V. Summary and Conclusion

Korea and Vietnam were the 24 years since diplomatic relations. And both countries due to the FTA into force has formed an increasingly close relationship. At this point, I studied what to look for ways for companies to collaborate between Korea and Vietnam are authorized.

First, through this study, Vietnam is included in the ASEAN countries and was conducted research and analysis on this to know how much share in ASEAN. In other words, Korea and ASEAN trade volume is increasing year by year and there were increasing rapidly since 2011. I could found that as the trade volume was the second largest economic zones after China, it has emerged as a region to solidify its position as China Post.

The following was examined the relationship between Vietnam and Korea that was showed a young and looked average annual economic growth rate of over 6% and had cheap labor among the ASEAN countries. Recently, Korea and Vietnam FTA enters into force, it was broadly progressed the open market between the two countries, the two countries in 2015 was achieved the export amount more than the United States. Through this, businesses in Korea have proposed a variety of measures in advance as entry into the Vietnamese market.

And to explore the overseas company in Korea that they are entering into any form, it was citing several cases as an example. Kmall24 platform operated by the Korea International Trade Association was accelerating overseas expansion with the launch of products of the company.

Finally, a strengthening strategy that Korea companies to collaborate in expanding into Vietnam presented in four aspects. First, it is to strengthen the close ties between Korea and Vietnam. Second, it is outgoing and expand advanced company of Korea and win with local companies at the same time. Third, it is to exchange with each other the highest quality talent to attract talent. Fourth, it is to seek ways to advance through the e-commerce market for online activation and reduce costs of enterprises.

If you point out the limitations of this study, Using specific analysis tools rather than policy aspects were implemented between the two countries were trying to solve the problem mainly social aspects, demographic aspects. Therefore, it would be more precise limits and could not be objectified by utilizing specific materials.

1) ASEAN Economic Community (AEC) refers to a country in Southeast Asia Economic Community Union consisting of 10 countries, for the purpose of regional economic integration, it makes it a basis for the free movement of logistics and human resources. Since 1997, was discussed by the establishment of the ASEAN Economic Community by the summit of the Association of Southeast Asian Nations, signed in earnest in the establishment of the ASEAN Economic Community November 22, 2015 in Kuala-Lumpur, was officially launched in a December 31, 2015. source :
2) 2012 growth standards.
3) For the electronic transmission, substantially tariff duties has been impossible and maintain the duty-free practices internationally. Korea was also applied to the duty-free tariff. Since it decided to adopt the “WTO Ministerial Declaration on e-commerce,” in the WTO Ministerial Conference and maintain the temporary duty-free practices in online, this has extended the validity of these decisions. source: Ministry of Trade, Industry and Energy(2015), ‘Korea and Vietnam FTA details Data’, p.86
4) TSI ik=(EX ik-IM ik)/(EX ik+IM ik) 단, TSI ik= k goods of i nation or trade specialization index for j nation of Industry, EX ik= k goods of i nation or exports for j nation of industry, IM ik= k goods of i nation or imports for j nation of industry.

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