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The conclusions of Vietnam - Korea Free Trade Agreement

Fri, 12 Dec 2014. Last updated Thu, 25 Jun 2015 08:57

In the afternoon of December 10th, representatives of Vietnam Government and Korean Government signed the Memorandum of Agreement (MOA) to conclude negotiations of Vietnam - Korea Free Trade Agreement.

On the occasion of the 25th anniversary of ASEAN-ROK Dialogue Relations, in the presence of Prime Minister Nguyen Tan Dung and Korean President Park Geun Hye, Minister of Vietnam industry and Trade Ministry Vu Huy Hoang and Minister of Korean Ministry of Trade, Industry and Energy Yoon Sang Jick signed MOA to conclude negotiations of Vietnam - Korea Free Trade Agreement. Officially launched in Hanoi on August 6th, 2012, after 8 official negotiations, mid-term meetings, and chief negotiator meetings, two parties basically agreed the content of FTA in the comprehensive range, high level of commitment, and balance of interests. The main contents in Vietnam - Korea Free Trade Agreement include Merchandise Trade (Tariff reduction commitments); Service and Trading (including the Appendix on Telecommunications, Finance...); Investment, Intellectual Property, Sanitary and Phytosanitary Measures (SPS); Rules of Origin, Trade Defense, Technical Barriers to Trade (TBT), E-commerce, Economic Cooperation, and Institutional and Legal.

 

Vietnam And Korea on FTA negotiation

 

The Korean side will offer Vietnam incentives of cutting or reducing tariffs, creating new opportunities for important commodities of Vietnam such as agricultural and fisheries products (shrimp, fish, fruits) and industrial goods (textiles, mechanical products...). Besides, Korea also pledged to provide additional market opportunities for Vietnam investments and services; strengthen economic cooperation, and take care about comprehensive technical support in many fields. This is also the first time Korea opening its market for Vietnam sensitive products such as garlic, ginger, honey, and shrimp, which will create significantly competitive opportunities for Vietnam in comparison to other competitors in the region.

 

FTA between Vietnam and Korea aproved

 

The Vietnam side will provide Korea incentives of industrial commodities involving materials for the textile and garment, plastic materials, electronic components, trucks and cars from 2500 CC, electrical appliances, iron and steel products, and electrical cables. Korea will liberalize 96.48% the value of imports from Vietnam, vice versa, Vietnam will liberalize 92.75% the value of imports from Korea. Other commitments On services, investment, intellectual property, competition, trade defense, dispute resolution, economic cooperation, sanitary and phytosanitary measures, technical measures for commercial, etc. are agreed to ensure balance of interests, in accordance with domestic law and without prejudice to other current negotiations of Vietnam.

 

textiles -major export items of Vietnam to Korea

 

In addition to export interests, Vietnam-Korea FTA is expected to create favorable conditions to improve the efficiency of import and export. Thereby, it will help to support economic restructure and increase the proportion of export for high added value commodities. The commitments on services, investment, transparent policy environment, fair competition in accordance with the provisions of Vietnam-Korea FTA are expected to attract investments from Korea, especially in fields of high technology and manufacturing industry. The free trade will help to promote the connection between 2 economies, enhance people's exchange, and deepen the Vietnam and Korea relation. It is expected that both parties will complete the negotiations on the theme of the remaining technical issues and finish necessary procedures for signing FTA in the early 2015.

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