K-Equipment Proves Successful in Vietnam… Consecutive Export Contracts for Medical Devices and Construction Machinery

In the first half of this year, export performance in specialized equipment sectors, such as South Korean construction machinery and medical devices, was prominent in the Vietnam market. It has been revealed that through economic diplomacy events led by KOTRA, our companies discovered large-scale local buyers and led to practical export contracts.

Largest Economic Diplomacy of the First Half… Contracts Worth 82.54 Million Dollars Signed

According to a KOTRA TV video, the 'Korea–Vietnam Business Partnership' event held last April recorded the largest scale and performance among economic diplomacy events in the first half. A total of 111 South Korean companies and 297 Vietnamese companies participated in this event, and through a total of 672 consultations, 24 contracts worth a total of 82.54 million dollars (approximately 110 billion won) were signed. While the previous China edition produced results centered on consumer goods, this Vietnam edition is characterized by the fact that practical export preparations and contracts continued in specialized equipment sectors such as construction machinery and medical devices.

"Clear Preference for Made in Korea"... Key to Exporting Construction Machinery and Medical Devices is 'After-Sales Service'

Companies met on-site commonly mentioned the high preference for South Korean products in the Vietnam market. Kim Jeong-tae, CEO of Seongsan Industry, stated, "The Vietnam market likes South Korean products very much," and added, "The status of South Korean brands has risen to the point where they prefer having 'Made in Korea' written prominently rather than changing labeling to meet local standards." CEO Kim emphasized that when exporting construction machinery, spare parts must accompany the equipment, explaining that steady after-sales management and a high-quality strategy are the deciding factors.

Cho Beom-sik, Director of A-One Medical Equipment Industry, which exports medical beds, stated that he was able to meet 'big buyers' through participation in this economic mission. Director Cho said, "It was difficult to confirm actual products through online consultations alone, which limited expansion, but through the economic mission event, we were able to meet VIP-level buyers directly and lead to contracts." In particular, A-One Medical Equipment Industry was able to receive information on business forums and participate through KOTRA's branch office service, and subsequently continued follow-up development activities, such as inviting buyers to an exhibition in May to directly demonstrate the differentiation of their products.

To solve the issue of after-sales service (A/S), which is important due to the nature of medical devices, A-One Medical Equipment Industry is sending spare parts together and conducting services through local partner companies. Director Cho added, "We began to actively knock on export doors starting from 2023, and because Vietnam is a country with good influence in Southeast Asia and is good for obtaining practical opportunities, we are expanding our market starting from Vietnam to Thailand, Philippines, and beyond."

KOTRA Acts as a 'Trust Channel' for SMEs' Overseas Expansion

Participating companies evaluated that KOTRA's support is becoming a powerful trust asset for the overseas expansion of small and medium-sized enterprises (SMEs). Seongsan Industry stated, "From the perspective of SMEs, KOTRA becomes a reliable presence overseas and plays a role in providing trust to buyers," describing it as 'win-win cooperation.' In particular, they explained that the role of providing guarantees to buyers when signing heavy equipment contracts through the two major trade offices in Hanoi and Ho Chi Minh City contributed to the achievement.

Meanwhile, this series settling the economic diplomacy achievements will sequentially cover the achievements in the India and Philippines markets, starting with Vietnam. In the case of the India market, while the total beauty market size reaches approximately 32 trillion to 35 trillion won, K-Beauty accounts for a portion of approximately 500 billion won. The video is expected to introduce cases such as a local buyer signing an MOU to open five stores.