Korea concludes a bilateral FTA with Vietnam

Korea and Vietnam recently officially concluded a free trade agreement with Vietnam. The two countries, which are under the Korea-ASEAN FTA, are expected to expand bilateral trade with the further upgraded FTA. The Korean government has set a goal for the implementation of the FTA within this year through follow-up procedures such as ratification by the National Assembly.

The Korea-Vietnam FTA was recently officially signed by South Korean Minister of Trade and Industry and Energy, and his Vietnamese counterpart in Hanoi. Under the bilateral FTA, the countries would seek to further expand their bilateral trade based on the Korea-ASEAN FTA which came into effect in June 2007. Under the Korea-ASEAN FTA, Korea has eliminated its import tariffs on 91.7 percent of products delivered from Vietnam. Korea would raise it to 94.7 percent while Vietnam would increase it from the existing 86.3 percent to 92.4 percent.

Regarding the number of products, Korea would completely remove its import duties on 499 products and Vietnam on 272 goods, within 15 years. In particular, the FTA would eliminate tariffs on home appliances, cosmetics and major parts of cars, which were excluded from the Korea-ASEAN FTA, within 10 years to contribute to the expansion of exports of Korean products. The Korean Trade Minister explained, ”The Korea-Vietnam FTA will help Vietnam’s economic development and boost bilateral trades by expanding Korean firms’ investment in Vietnam,” adding that it would be a good example of “a mutually rewarding FTA.”

korean-electronics.com | Blog Magazine of korean electronics, brands and Goods

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