Cuttle fish is one of key export products from Viet Nam to South Korea. The two countries expected to reach a total trade value of US$70 billion in 2020. — Photo doanhnghiepvathuongmai.vn
Bilateral trade between Viet Nam and South Korea is expected to reach US$70 billion by 2020 due to the Viet Nam – South Korea Free Trade Agreement (VKFTA) which came into effect one year ago.
South Korean Ambassador Lee Hyuk in Viet Nam told Cong Thuong newspaper that as of September, the export value from South Korea to Viet Nam rose 12 per cent, while the export value from Viet Nam to South Korea increased 32 per cent year on year.
Of note, exports from South Korea to Viet Nam exceeded the export value from South Korea to Japan, a traditional and long term export market in South Korea. This is being seen as the greatest success since the VKFTA came into effect in December 2015, he said.
Export products from Viet Nam to South Korea include textiles, crude oil, seafood, fibers, wood and wood products, while products that were shipped from South Korea to Viet Nam were computers, electronic products and their components, machines, equipment and telephone components.
An increase in Viet Nam’s exports to South Korea has contributed to the growth in Viet Nam’s total export value and has balanced exports and imports between the two countries, Lee Hyuk said.
From 2017, 18 items will join tariff reductions under the VKFTA, so the trade value between the two countries is expected to increase and become more balanced, he said.
In addition, South Korea has become the largest investor in Viet Nam, in both volume and value, with a total investment capital of $49 billion. South Korea has also been the second largest donor of official development assistance (ODA).
Lee Hyuk said in 2016 that bilateral trade between Viet Nam and South Korea was expected to exceed $40 billion. The two countries anticipated that the value would reach $70 billion in 2020 due to taking full advantage of the VKFTA.
Of note, investment from South Korea’s enterprises in Viet Nam will assure that the bilateral trade value meets its target, he said. South Korean enterprises believe the investment environment in Viet Nam will continue to improve, he said.
Le An Hai, deputy head of the Ministry of Industry and Trade’s Asian Market Department, said based upon commitments of VKFTA, in the coming years the two countries would improve their economic and politic relationships. Viet Nam is to focus on building preferential mechanisms for South Korea, while South Korea is to continue to open its market for Viet Nam’s goods.
Local enterprises should take full advantage of the VKFTA to build cooperation to export products to South Korea and other regional countries, he said.
The ministry will work to ensure a fair business environment and create favourable conditions in business and investment activities for foreign enterprises in Viet Nam, including South Korean firms, Hai added. — VNS