The Vietnam – Republic of Korea Free Trade Agreement (VKFTA) signed onMay 5 reflects a high level of commitment from both sides and is set toboth challenge and benefit the Vietnamese economy in the future.
In a recent interview granted to the Vietnam NewsAgency, the head of the Ministry of Industry and Trade’s Trade PromotionAgency, Bui Huy Son, said Vietnam will see an unprecedented opportunityto sell strong products to the Republic of Korea (RoK), such as farmproduce, seafood, fruits, garments, footwear, electronics and woodenfurniture. These will enjoy a zero percent tariff when import fees usedto stand at 200-400 percent.
Vietnam can also nowafford to import raw materials for domestic production and consumption,and export to a third country, including those used in garments,footwear, plastics and automobiles.
A wave ofKorean capital will flow into Vietnam, bringing with it technologicaladvances and standard management skills to the country.
The RoK - the largest investor in Vietnam so far with 83.1 billion USDcommitted to nearly 4.300 projects - has become the most developednation in the Organisation for Economic Cooperation and Development(OECD).
At socio-political and diplomatic levels,it is expected that labour-intensive sectors in low-and middle incomegroups, including garments, footwear and agro-fisheries, will reap themost benefits from the FTA.
Asked about whatchallenges the FTA will pose for Vietnam, Son said the State agenciesmust fine-tune legal regulations in line with international standardswhile improving personnel capacity.
For thebusiness community, the greatest challenge is rising competition onceVietnamese and Korean firms penetrate each other’s markets, offeringconsumers a myriad of choices at increasingly lower costs.
To facilitate Vietnamese exports to the RoK, Son said there arevarious trade fairs held annually in the country, such as the Seoul FoodIndustry Fair, where Vietnamese exhibitors are able to meet consumersand new partners.
The agency also holds workingtrips for hundreds of Korean importers to Vietnam to seek ventures. Itsother activities also help improve the competitiveness of Vietnamesebusinesses via information sharing, support in market analysis, productdesign and development.
The ministry is alsosupporting businesses by launching large-scale electricity projects,bringing domestic products to rural areas and by providing e-commercetraining.-VNA
In a recent interview granted to the Vietnam NewsAgency, the head of the Ministry of Industry and Trade’s Trade PromotionAgency, Bui Huy Son, said Vietnam will see an unprecedented opportunityto sell strong products to the Republic of Korea (RoK), such as farmproduce, seafood, fruits, garments, footwear, electronics and woodenfurniture. These will enjoy a zero percent tariff when import fees usedto stand at 200-400 percent.
Vietnam can also nowafford to import raw materials for domestic production and consumption,and export to a third country, including those used in garments,footwear, plastics and automobiles.
A wave ofKorean capital will flow into Vietnam, bringing with it technologicaladvances and standard management skills to the country.
The RoK - the largest investor in Vietnam so far with 83.1 billion USDcommitted to nearly 4.300 projects - has become the most developednation in the Organisation for Economic Cooperation and Development(OECD).
At socio-political and diplomatic levels,it is expected that labour-intensive sectors in low-and middle incomegroups, including garments, footwear and agro-fisheries, will reap themost benefits from the FTA.
Asked about whatchallenges the FTA will pose for Vietnam, Son said the State agenciesmust fine-tune legal regulations in line with international standardswhile improving personnel capacity.
For thebusiness community, the greatest challenge is rising competition onceVietnamese and Korean firms penetrate each other’s markets, offeringconsumers a myriad of choices at increasingly lower costs.
To facilitate Vietnamese exports to the RoK, Son said there arevarious trade fairs held annually in the country, such as the Seoul FoodIndustry Fair, where Vietnamese exhibitors are able to meet consumersand new partners.
The agency also holds workingtrips for hundreds of Korean importers to Vietnam to seek ventures. Itsother activities also help improve the competitiveness of Vietnamesebusinesses via information sharing, support in market analysis, productdesign and development.
The ministry is alsosupporting businesses by launching large-scale electricity projects,bringing domestic products to rural areas and by providing e-commercetraining.-VNA
