RoK, Vietnam sign Free Trade Agreement

14:37 | 05/05/2015 Trade

On May 5, Industry and Trade Minister Vu Huy Hoang and the Republic of Korea (RoK) Minister of Commerce, Industry and Energy, Yoon Sang-jick, representing the two governments formally signed the Vietnam-Korea Free Trade Agreement (VKFTA) in the presence of Prime Minister Nguyen Tan Dung.

RoK, Vietnam sign Free Trade Agreement

After more than 2 years of conducting 8 rounds of formal negotiations, 8 rounds of talks at the delegation head level and mid-term negotiations, Vietnam and the RoK have agreed upon the entire VKFTA contents.

The comprehensive trade deal with high-level commitments consists of 17 chapters, 208 articles, 15 appendices and an agreement on regulation enforcement aiming to ensure balanced interests.

The main contents of the agreement covers trade in goods and services (including the annex on telecommunications services, financial services), investment and intellectual property, measures for food safety and animal and plant quarantine, rules of origin, customs facilitation, trade remedies, technical barriers to trade (TBT), e-commerce, competition, economic cooperation, institutions and legal affairs.

The VKFTA- a free trade pact among the first bilateral FTA between Vietnam and other economic partners- was officially signed in 2015.

The freshly-signed agreement is expected to have positive impacts on Vietnam in different aspects.

In terms of economics, trade and investment, the VKFTA will help Vietnam further improve the business environment, allocate and use social resources more efficiently, thereby accelerating the economic restructuring process towards higher added values and sustainable development goals.

Vietnam's exports will enjoy plenty of new market opportunities as a result of strong market access commitments from the RoK.

The transparent legal environment will contribute to encouraging more Korean investment into Vietnam together with high technology, advanced management skills and opportunities for access to third markets.

During the negotiation process, the two sides were also unanimous in the contents of the agreement on realizing economic cooperation commitments. Accordingly, the RoK supports Vietnam in capacity building and policy implementation, and improving the competitiveness of the areas where the RoK has strengths and Vietnam has demand for cooperation such as agriculture, fisheries, forestry, industrial electronics, and petrochemical and support industries.

The trade pact is believed to bring positive social benefits and generate more employment opportunities for Vietnamese workers to raise incomes, especially for unskilled employees, contributing to poverty reduction in rural areas.

The VKFTA signing is seen as a specific step forwards Vietnam’s deeper international economic integration, thus speeding up national industrialization and modernization, developing a long-term Vietnam-Korea partnership and maintain a stable and peaceful environment in the region.

After the signing, both sides are to make approval procedures under legal regulations of each country.

Under the commitment, the agreement will come into effect on the first day of the 2nd month from the date the completion of internal procedures are announced in writing through diplomatic channels or from any another date as agreed by the two sides.

                                                                                                                                                                                 Source VOV News