08:52 | 12/01/2016 Cooperation
(VEN) - Vietnam and the Republic of Korea (RoK) have raised their ties to a strategic partnership and after 23 years, the two countries have achieved great progress, including in finance, the RoK is currently one of Vietnam’s key partners.
The RoK has prioritized Vietnamese shrimp exports to this market
According to the Ministry of Finance, the RoK is currently Vietnam’s second largest donor with outstanding projects such as Vam Cong Bridge, Hanoi-Hai Phong Highway and Quang Nam Central Hospital.
The RoK has provided US$215 million for six projects including the Da Nang and Lao Cai hospitals, the Quang Binh Solar Power Plant, the Long Xuyen water supply and drainage program, the climate change prevention program and the Governmental Data Center.
Concurrent with implementing small-scale technical support projects, the RoK has also funded several large-scale construction projects such as the Vietnam-Korea Institute of Science and Technology and the Vietnam-Korea Technology Nursery in Can Tho.
Bilateral relations in trade, investment and finance have been strengthened based on the existing regional and bilateral agreements between the two countries, including agreements in finance and tariff liberalization.
Vietnam and the RoK joined the ASEAN-Korea Free Trade Agreement (AKFTA) in 2005. Vietnam began implementing its tariff commitments in 2007 and pledged to terminate import tariffs on 86 percent of all tariff lines by 2018 and complete the tariff reduction itinerary by 2021.
The Ministry of Finance of Vietnam and the Ministry of Strategy and Finance of the RoK concluded a memorandum of understanding on cooperation in finance in 2006.
The two countries signed an agreement on double taxation avoidance in May 20, 1994 and began implementing it on September 11, 1994, plus agreements on mutual visits and meetings between specialist agencies since 2002.
Vietnamese and South Korean tax authorities have launched mutual visits and working sessions to share tax policies and experiences.
In addition, since 2009 the Vietnamese Ministry of Finance and the Embassy of the Republic of Korea have organized annual dialogue conferences in Hanoi and Ho Chi Minh City in order to talk with South Korean businesses about existing Vietnamese tax and customs policies. These activities have contributed to resolving problems for businesses, reforming administration and improving the investment and business environment for Korean companies in Vietnam.
According to the Ministry of Finance, with the practical and balanced trade, investment and financial partnership based on improving and stabilizing agreements, the Vietnamese economy and finance will continue to progress with the RoK.
The RoK is the leading investor among the 48 countries and territories investing in Vietnam. The country has registered total new and supplementary capital of US$1.52 billion accounting for 27.7 percent of total foreign direct investment in Vietnam in 2015.
The country currently has 4,777 projects with total registered capital of more than US$43.6 billion in Vietnam. Most projects are in processing, manufacturing, real estate, residence services, food services, construction and communications.