(ĐN)- Vietnam and the Republic of Korea (RoK) have officially signed a free trade agreement (FTA) on May 5 after over two years of negotiations.
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| Volcafe's product will be exported to RoK. |
(ĐN)- Vietnam and the Republic of Korea (RoK) have officially signed a free trade agreement (FTA) on May 5 after over two years of negotiations.
Accordingly, a high level of market opening supported by effective FTA would raise the RoK’s exports to Vietnam remarkably and turn Vietnam into one of the RoK’s leading export markets. Besides, there will be a lot of opportunities for Vietnam in general and Dong Nai in particular to export its products to the RoK.
The RoK is currently the second largest investor in Dong Nai with an investment of US$4.6 billion
Under the Vietnam-Korea FTA, the RoK will help Vietnam improve its capacity to develop and enforce policies and competitiveness in agro-forestry-fisheries, electronic technology, petrochemical and oil refinery and support industry.
Particularly, the northeast Asian nation will remove 95.4% of tariff lines for imports from Vietnam including crab and shrimp products, fish, fruit, apparel, furniture and manufactured goods.
Vietnam will liberalize 89.2% of all products imported from Korea, including materials for apparel and plastic production, electronics, trucks and passenger cars of no more than 3,000 cubic centimeters, auto parts, home appliances, certain steel products and electrical cables.
According to Director Ngo Yen Van of Thien Van Company in Bien Hoa city, most of the imports from Korea are materials for domestic production and will help Dong Nai’s enterprises reduce reliance on imports from certain markets.
The FTA is also expected to attract more Korean investors, who will bring management expertise and high technology to Vietnam. It will help create more jobs and increase incomes for Vietnamese employees, particularly unskilled workers and ease and eradicate poverty in rural areas.
The FTA, once in place, will help increase not only Korean companies’ investment in Vietnam but also trade between the two countries.
Reported by V.Nam
