Abstract

Purpose: This study examines the utilization of the Vietnam-Korea Free Trade Agreement (VKFTA) among Vietnamese small and medium-sized enterprises (SMEs) and proposes policy measures to enhance its effectiveness. Research design, data and methodology: Despite the VKFTA’s contributions to expanding export markets and boosting bilateral trade, the utilization rate (i.e., the percentage of enterprises that actively apply tariff preferences offered by the VKFTA when exporting) among Vietnamese SMEs remains low, ranging from approximately 28% to 35% across sectors. Key barriers include limited internal capacity (such as lack of qualified personnel and poor understanding of rules of origin), high compliance costs, complex procedures, and inadequate institutional support. Results: To address these challenges, the study proposes a comprehensive policy package focusing on institutional coordination, the development of sector-specific support tools, simplification of administrative procedures, capacity-building programs, and enhanced market connectivity with Korea. These recommendations emphasize the shared responsibilities of government agencies, industry associations, and trade promotion bodies in improving SME access to and engagement with the VKFTA. Conclusions: Given that SMEs represent a substantial portion of Vietnam’s enterprise landscape, their enhanced participation in the agreement is critical to ensuring more inclusive and sustainable trade benefits from VKFTA implementation.