A seminar discussed ways to speed up negotiations of a free trade agreement (FTA) between Vietnam and Korea was held in Hanoi on December 12.

Experts and participants have shared updated information about Korea’s FTA policy and strategy, Vietnam’s international economic integration, current status of FTA negotiations between Vietnam – Korea, Vietnam – Korea trade partnership and business opportunities for both nations’ enterprises.

According to Mr Koh Kyung Sok, Director of FTA Policy Planning Division under the Korea’s Ministry of Foreign Affairs and Trade, Korea’s FTA global network is offering a big window for international business community to compete each other.

Korea has signed FTA with 46 nations (in the frame work of bilateral and multilateral) including EU, US, India and ASEAN. Vietnam is one of 13 FTA negotiating nations with Korea. In ASEAN, Vietnam ranks third in the list of big trade partners from Korea, after Indonesia and Singapore.

 Both sides have made use of the 2007 Korea - ASEAN FTA, raising their annual trade exchanges by 28.5 percent from merely 14.4 percent before the agreement took effect.

 However, Vietnam’s trade growth and liberalization remain low compared to other Asian countries, barring exchanges between the two countries. Accelerating bilateral FTA negotiations is considered an effective solution.

Speaking at the event, Mr Nguyen Cam Tu, Vice Minister of Industry and Trade of Vietnam, told that Vietnam – Korea trade ties has seen a 36 fold increase over the past 19 years, from around USD0.5 billion in 1992 to USD17.6 billion last year. Korea, in 2011, was Vietnam’s fourth largest trade partner and eighth largest export market.

 

Vice Minister of Industry and Trade, Mr Nguyen Cam Tu at the event

Vietnam mainly imports machinery, equipment, and leather shoe and garment accessories, petrol, steel, plastics, chemicals, and vehicles. It exports minerals, raw materials, agro-forestry and fishery products, garments, and furniture.

 Mr Choi Kyong-lim, Vice Minister of Foreign Affairs and Trade of Korea said the Korea-Vietnam relations have grown and flourished in all areas. The two parties have been upgraded to a new level of the strategic cooperation partnership in October 2009 during the visit of Korean President Lee Myung-Park to Vietnam). The two countries have set a target of raising bilateral trade to USD20 billion by 2015.

 Meanwhile, Korean Ambassador to Vietnam, Mr Ha Chan-ho, stressed once the FTA is signed, it will offer numerous opportunities for the two countries’ business circles to expand trade and investment cooperation in some new areas of energy, infrastructure, agro-aquaculture, official development assistance (ODA), besides traditional trade and investment.

 Up to October 20 this year, Korea is Vietnam’s second largest foreign investor with a total registered capital of USD24.5 billion in 3,134 projects. As many as 2,600 Korean businesses are running in Vietnam, creating jobs for over 400,000 local people in mainly manufacturing and real estate projects.

 Earlier, on August 6, 2012, Vietnam and Korea officially kicked off rounds of FTA negotiations in an effort to expand bilateral trade and investment relations. The first round conducted in Korea in September this year. The second round is expected to take place next year./.

CPV