Turkey proposes free trade pact with Vietnam

14:10 | 01/08/2017 Cooperation

(VEN) - Economic and trade cooperation between Vietnam and Turkey has expanded in recent years. Turkey has become one of Vietnam’s largest trading partners in the Middle East. Bilateral trade has grown and is targeted to reach US$4 billion by 2020.  

Vietnam and Turkey have signed cooperation agreements in a wide range of fields

Cooperation agreements

Vietnam and Turkey established diplomatic relations in 1978 and the two countries have signed important cooperation agreements on air and maritime transportation and double taxation avoidance, creating a legal framework to facilitate trade and investment between the two sides.

At the seventh session of the Vietnam-Turkey Joint Committee on Economic and Trade Cooperation that took place recently in Hanoi, Vietnamese Minister of Industry and Trade Tran Tuan Anh and Turkish Minister of Labor and Social Security Mehmet Muezzinoglu signed cooperation agreements in the fields of industry, investment and customs.

The two sides have actively supported each other at regional and international forums, exchanged delegations at different levels, and carried out diverse external relations activities. Preparations are underway for the Turkish prime minister to visit Vietnam.
Bilateral trade remains incommensurate with its potential, currently standing at about US$1.5 billion per year.

Data from the General Department of Vietnam Customs show that in the first five months of this year, bilateral trade reached US$724.6 million, including US$634.9 million worth of Vietnamese exports to Turkey.

Promoting bilateral relations

At the joint committee session, the two sides agreed to expand cooperation to support the operations of small and medium enterprises in the industrial sector. The Vietnamese Ministry of Industry and Trade’s Agency for Regional Industry Development and the Turkish Small and Medium Industry Development Organization (KOSGEB) signed a joint action plan to boost cooperation in this field. The Turkish side proposed the initiation of negotiations on a bilateral free trade agreement in the near future.

The Vietnamese Ministry of Planning and Investment and the Turkish Ministry of Economy reached a consensus on the content of a memorandum of understanding (MoU) on cooperation in management of economic, industrial and export-processing zones. This MoU will be signed soon to facilitate investment cooperation between the two countries.

The Vietnamese Ministry of Finance and the Turkish Ministry of Customs and Trade have reached a consensus on the content of an MoU on customs cooperation. The Vietnamese Directorate for Standards, Metrology and Quality has also agreed with the Turkish Standards Institution on the content of a cooperation agreement between the two sides. These agreements will pave the way for Vietnam and Turkey to increase bilateral trade.

Kim Chi