The enforcement of the Vietnam-Korea Free Trade Agreement (VKFTA) has been bringing new opportunities to businesses of both nations, but the number of Vietnamese firms capitalising on the deal is lower than expected (Photo: VNA)HCM City (VNA) – The enforcement of the Vietnam-Korea Free TradeAgreement (VKFTA) has been bringing new opportunities to businesses of bothnations, but the number of Vietnamese firms capitalising on the deal is lowerthan expected.
The view was shared by experts at a seminar co-hosted by the VietnameseMinistry of Industry and Trade (MOIT)’s Department of Asia and Africa Marketsand the Korea Trade-Investment Promotion Agency (KOTRA) in Ho Chi Minh City onMay 10.
Le An Hai, Deputy Director of the Vietnamese Ministry of Industry andTrade (MOIT)’s Department of Asia and Africa Markets, said the VKFTA, whichtook effect since late 2015, has helped bilateral trade and investment grow by13-30 percent per year.
Two-way trade reached a record high of 61.5 billion USD in 2017, hesaid, adding that Vietnam’s exports to the Republic of Korea (RoK) haswitnessed higher growth than its imports from the East Asian country.
Sungho Ahn, a representative from the Korean Ministry of Trade, Industryand Energy, said since the VKFTA came into force, the RoK’s major groups suchas Samsung, LG and Doosan have expanded investment in Vietnam.
By the end of 2017, the RoK had invested 57.6 billion USD in more than6,500 projects in Vietnam, making it the biggest foreign investor in theSoutheast Asian country, he said.
The Korean projects mainly focused on manufacturing industry and productionfor export, thus creating a momentum for the two nations to achieve the targetof 100 billion USD in bilateral trade by 2020, the official added.
However, experts said the RoK’s FDI enterprises have higher export valueand better taken advantage of the VKFTA as domestic firms have just got accessto the supply chain and preferential aspects of the deal.
Therefore, they suggested Vietnamese enterprises take the initiative in gettinginformation about the VKFTA as well as other FTAs that Vietnam has signed tochoose their own incentives.
Domestic businesses should also renovate their technologies and developproducts in conformity with the market’s demand, the experts said.-VNA
The view was shared by experts at a seminar co-hosted by the VietnameseMinistry of Industry and Trade (MOIT)’s Department of Asia and Africa Marketsand the Korea Trade-Investment Promotion Agency (KOTRA) in Ho Chi Minh City onMay 10.
Le An Hai, Deputy Director of the Vietnamese Ministry of Industry andTrade (MOIT)’s Department of Asia and Africa Markets, said the VKFTA, whichtook effect since late 2015, has helped bilateral trade and investment grow by13-30 percent per year.
Two-way trade reached a record high of 61.5 billion USD in 2017, hesaid, adding that Vietnam’s exports to the Republic of Korea (RoK) haswitnessed higher growth than its imports from the East Asian country.
Sungho Ahn, a representative from the Korean Ministry of Trade, Industryand Energy, said since the VKFTA came into force, the RoK’s major groups suchas Samsung, LG and Doosan have expanded investment in Vietnam.
By the end of 2017, the RoK had invested 57.6 billion USD in more than6,500 projects in Vietnam, making it the biggest foreign investor in theSoutheast Asian country, he said.
The Korean projects mainly focused on manufacturing industry and productionfor export, thus creating a momentum for the two nations to achieve the targetof 100 billion USD in bilateral trade by 2020, the official added.
However, experts said the RoK’s FDI enterprises have higher export valueand better taken advantage of the VKFTA as domestic firms have just got accessto the supply chain and preferential aspects of the deal.
Therefore, they suggested Vietnamese enterprises take the initiative in gettinginformation about the VKFTA as well as other FTAs that Vietnam has signed tochoose their own incentives.
Domestic businesses should also renovate their technologies and developproducts in conformity with the market’s demand, the experts said.-VNA
VNA
