RoK, Vietnam aim for US$20 billion in trade turnover
Trade turnover between Vietnam and the Republic of Korea (RoK) was US$18.5 billion in 2011, and is likely to reach over US$20 billion by the end of this year.
The figures were released at a seminar on trade and investment cooperation recently held between the two countries in the Mekong Delta city of Can Tho by the Vietnam Chamber of Commerce and Industry (VCCI) and the RoK Consulate.
Participants said that the Mekong Delta region has many advantages to export farm produce to the Korean market, which has an increasing demand for food and aquaculture products.
The RoK wants to import around 50,000 tonnes of rice annually and is considering Vietnam a potential supplier because Koreans like glutinous, fragrant, unbroken grain. However, the quality of Vietnamese rice is sometimes inconsistent, they said, describing it as a challenge for local exporters.
According to VCCI statistics, Vietnam’s exports to the RoK earned nearly US$5 billion while imported Korean goods were worth more than US$13 billion in 2011, turning the RoK into their second largest exporter, after China.
At present, eight out of 13 provinces and cities in the Mekong Delta have established commercial links with RoK partners. Local companies mostly export food produce like seafood, fruit, vegetables and grain to the Korean market.
Following the ASEAN-Korea Trade in Goods Agreement (AKTIG) singed in 2006, the RoK has removed 90 percent of common tariff lines, and is gradually reducing the remaining 10 percent.
Vietnam has committed to remove tariffs on 60 percent of imports from the RoK in the near term, and 100 percent as of January 1, 2016.
The two countries are now in negotiations to sign a bilateral trade agreement to increase their two-way trade turnover, which is expected to hit US$25 billion by 2015.
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Participants said that the Mekong Delta region has many advantages to export farm produce to the Korean market, which has an increasing demand for food and aquaculture products.
The RoK wants to import around 50,000 tonnes of rice annually and is considering Vietnam a potential supplier because Koreans like glutinous, fragrant, unbroken grain. However, the quality of Vietnamese rice is sometimes inconsistent, they said, describing it as a challenge for local exporters.
According to VCCI statistics, Vietnam’s exports to the RoK earned nearly US$5 billion while imported Korean goods were worth more than US$13 billion in 2011, turning the RoK into their second largest exporter, after China.
At present, eight out of 13 provinces and cities in the Mekong Delta have established commercial links with RoK partners. Local companies mostly export food produce like seafood, fruit, vegetables and grain to the Korean market.
Following the ASEAN-Korea Trade in Goods Agreement (AKTIG) singed in 2006, the RoK has removed 90 percent of common tariff lines, and is gradually reducing the remaining 10 percent.
Vietnam has committed to remove tariffs on 60 percent of imports from the RoK in the near term, and 100 percent as of January 1, 2016.
The two countries are now in negotiations to sign a bilateral trade agreement to increase their two-way trade turnover, which is expected to hit US$25 billion by 2015.
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