logo logo

South Korea-Vietnam to sign free trade agreement

Saigon GP Daily, Vietnam (Government)

South Korea-Vietnam to sign free trade agreement

28 November 2012

On November 27, a conference relating to the ongoing Free Trade Agreement (FTA) negotiations between Vietnam and the Republic of Korea was held in Ho Chi Minh City.

Experts gathered at the seminar believe that a bilateral free trade agreement between South Korea and Vietnam (KVFTA) will be signed soon and Vietnam will see great benefits from this agreement.
A seminar on chances in cooperation in trade, services and investment between South Korea and Vietnam (photo gvt wbsite)

Although the ASEAN-RoK Free Trade Agreement that came into effect in 2010 has brought success in trade, services and investment, the two sides should increase cooperation to meet the changes in global economy and the huge economic scale of the two countries.

RoK is currently pouring investments into Vietnam’s manufacturing, mining, urban development and hotel sectors, according to the seminar that was co-organized by the Vietnam Chamber of Commerce in HCMC and the Korean Trade Investment Promotion Agency of South Korea.

Vietnam imports IC, phones, machinery and equipment from RoK, while exporting agricultural products, seafood, oil, gas and coal.

So far, RoK has signed FTA with the US and the European Union (EU).

At the event, participants were provided an overview of the Vietnam-RoK FTA, under which a number of goods will enjoy a tax reduction, helping elevate bilateral economic ties.

Park IL Young, Head of Planning and International Cooperation MOSF, said that compared with the FTA Korea-ASEAN signed in 2007, KVFTA will open up more opportunities and benefits for Vietnamese goods, there will be more tariff lines and the tax rate will reduced further in KVFTA.

ASEAN has become South Korea’s second largest partner in 2010, FTA Korea-ASEAN trade growth has boosted from US$66.4 billion in 2006 to $124.7 billion in 2011.

Korean investment in ASEAN grew from $3.6 billion in 2006 to $7.1 billion.

Separate two-way trade between Vietnam and South Korea in 2006 reached $4.7 billion; in 2011 to $18.5 billion; and in 2012 is expected to exceed $20 billion.