A report by the rating agency Moody’s says the credit quality of Vietnam and Japan will be in danger if military conflict on the Korean peninsula occurs.
While South Korea, which is the closest neighbour of North Korea, would obviously suffer from an economic perspective, and Vietnam, which has extensive supply chain operations by South Korean companies like Samsung Electronics and LG Electronics, would also be affected.
Around 20 per cent of Vietnam’s intermediate goods imports come from South Korea. Vietnam’s goods exports to South Korea account for more than five per cent of the country’s gross domestic product, the highest level in the world, followed by Singapore.