Flexible rules of origin, online transactions boost Vietnam-RoK trade

06:00 | 13/05/2021 Policy Follow Ven.vn on

(VEN) - The Republic of Korea (RoK) has become a major trade and investment partner of Vietnam due to the flexible rules of origin and high tariff reduction commitments in the Vietnam-Korea Free Trade Agreement (VKFTA) over the past five years.

Flexible rules of origin

Economists say the rules of origin in the VKFTA, in force since December 2015, are relatively simple. For example, under the EU-Vietnam Free Trade Agreement (EVFTA), if a fabric originating in the RoK is brought to Vietnam and further processed, it can be considered as originating in Vietnam and applicable to the tariff break. The VKFTA tariff commitments are based on those in the ASEAN-Korea Free Trade Agreement (AKFTA). However, the VKFTA has more tax reduction provisions than the AKFTA.

Specifically, the RoK has eliminated 11,679 tariff lines (accounting for 95.44 percent of the total) in accordance with VKFTA and AKFTA.

The agreement also allows for exemption from submission of certificates of origin for imported goods with an FOB (free on board) value of up to US$600. Other free trade agreements Vietnam has signed only exempt certificates of origin for goods with an FOB value of up to US$200.

flexible rules of origin online transactions boost vietnam rok trade

The VKFTA is boosting trade between Vietnam and the RoK

The flexible rules of origin and high tariff reduction commitments in the VKFTA are benefiting trade between Vietnam and the RoK. In the first two months of 2021, bilateral trade reached more than US$11.56 million, an encouraging figure in the context of the Covid-19 pandemic.

According to the Vietnamese Ministry of Industry and Trade, VKFTA has benefited the export value of Vietnamese seafood, textile, wood products, footwear, fibers, fruit and vegetables, and Korean computers, electronic products and components, textile, leather and footwear materials and accessories, and electrical wires and cables.

Simple rules of origin benefit Vietnamese exports

Online trading

Despite the Covid-19 pandemic, the Korea Trade-Investment Promotion Agency (KOTRA) has made efforts to organize trade promotion activities in Vietnam.

Online trading has allowed KOTRA to respond quickly to the needs of Vietnamese businesses looking for reputable Korean suppliers, arranging online work schedules, and providing interpretation services. Vietnamese businesses do not have to pay for these support activities, according to Lee Jong Seob, President of KOTRA in Southeast Asia-Oceania. In 2020, KOTRA Hanoi conducted more than 50 online trade events, helping more than 1,200 Korean businesses connect with nearly 1,000 Vietnamese businesses, conducting some 1,800 effective trade exchanges. KOTRA will conduct more than 60 online exchange events with nearly 2,000 online transactions between Korean suppliers and Vietnamese buyers in 2021.

In addition, KOTRA will organize three large-scale exhibitions in Hanoi, namely the Vietnam International Trade Fair (Vietnam Expo 2021), the Vietnam International Medical, Hospital and Pharmaceutical Exhibition (Vietnam Medipharm Expo 2021), and the Vietnam International Industrial Fair (VIIF 2021).

The Vietnamese Ministry of Industry and Trade will promote Korean investment in Vietnam, help Korean businesses in Vietnam maintain and increase exports to the RoK, help and encourage Vietnamese enterprises to export to the RoK textiles and garments, footwear, wood products, farm produce, seafood and processed foods. It will also seek to enhance technology transfer and technical assistance from the RoK to improve the competitiveness of Vietnam’s automobile, textile-garment, chemical, mechanical and component industries.

Viet Nga

See more news

Gov't bodies asked to coordinate in prevention, control of money laundering, terrorist financing

15:21 | 27/02/2023 Policy

Prime Minister Pham Minh Chinh has signed Decision No. 64/QD-TTg dated February 8, 2023, promulgating the regulations on coordination among ministries, ministerial-level agencies, and governmental agencies in prevention and control of money laundering and terrorist financing.

Prime Minister sets tasks to clear highway construction hindrances

14:25 | 24/02/2023 Policy

Prime Minister Pham Minh Chinh signed Public Telegram 57/CD-TTg, on February 19, on measures to solve shortcomings and accelerate the progress of major road projects.

New legal documents in first half of February 2023

06:00 | 21/02/2023 Policy

VEN lists the latest legal documents issued by the Vietnamese Government, ministries and state agencies.

Viet Nam to issue e-passports in March

07:00 | 18/02/2023 Policy

The Ministry of Public Security and the Vietnamese diplomatic missions abroad will officially issue passports containing electronic chips for Vietnamese citizens from March 1, 2023.

Minister Diên and US Trade Representative discuss strengthening Comprehensive Partnership

19:47 | 14/02/2023 Vietnam and other regions

Katherine Tai is on her first visit to Việt Nam, which is also the first visit at the ministerial-economic level of the Biden administration. The visit is part of a string of activities marking the 10th anniversary of the Việt Nam-US comprehensive partnership.

New legal documents in second half of January 2023

10:00 | 10/02/2023 Policy

VEN lists the latest legal documents issued by the Vietnamese Government, ministries and state agencies.

PM urges focus on investment, export and consumption

06:00 | 10/02/2023 Policy

(VEN) - Industrial production recovered across the board throughout Vietnam last year, with processing and manufacturing growing at a rate of 8.1 percent, according to a report presented at a recent conference organized by the Ministry of Industry and Trade (MoIT) and attended by Prime Minister Pham Minh Chinh.

Screening tools to enhance FDI quality

06:00 | 05/02/2023 Policy

(VEN) - A set of foreign direct investment (FDI) screening tools was launched recently as a result of cooperation between the Vietnam Chamber of Commerce and Industry (VCCI) and the United Nations Development Program (UNDP), promising enhanced effectiveness of foreign investment flows into Vietnam.

Prime Minister demands faster disbursement of public investment capital

17:29 | 03/02/2023 Policy

Prime Minister Pham Minh Chinh demanded faster pace of public investment capital disbursement while chairing the Cabinet meeting on Thursday.

Deputy FM highlights role of economic diplomacy in service of national development

11:05 | 01/02/2023 Policy

The Ministry of Foreign Affairs has accompanied the Ministry of Planning and Investment and agencies to attract high-quality investment, connect and support foreign enterprises to invest and expand operations in Việt Nam, as well as to strengthen exchange and cooperation with investment funds and study international investment trends.

Latest Most Read

Herbalife sponsors the annual Glory of Vietnam Sports Event

17:23 | 20/03/2023 Companies

Herbalife Vietnam has helped the Vietnam Sports Administration (VSA) and the Vietnam Olympic Committee (VOC) to organize the Glory of Vietnam Sports Event in Hanoi, held on the occasion of the 77th Anniversary of Vietnam Sports Day and ahead of the 32nd SEA Games.

Offshore wind energy an essential base load power source: official

14:30 | 20/03/2023 Energy

Offshore wind energy has great potential to contribute to the energy security goals of Việt Nam, according to deputy head of the Party Central Committee's Economic Commission Nguyễn Đức Hiển.

Hòa Bình Province exports first batch of fresh sugarcane to US

14:19 | 20/03/2023 Major exports

The first 20-tonne batch of fresh sugarcane from Hòa Bình bound for the US was announced at a ceremony held in the northern mountainous province on Sunday.

Vietnam introduces automated sorting system

13:00 | 20/03/2023 Make in Vietnam

(VEN) - The successful design, manufacturing and operation of an automatic goods sorting system has contributed to optimizing the production process and cutting the costs of logistics enterprises. Vietnam Economic News’ Quynh Nga interviewed Dr. Phan Dang Phong, Director of the National Research Institute of Mechanical Engineering (NARIME) under the Ministry of Industry and Trade (MoIT), about this technology.

King Coffee and Tín Thành Group partner to build a tyre plant in the US

10:20 | 20/03/2023 Vietnamese Brands

Vietnamese King Coffee and Tín Thành Group have entered into a partnership to build a tyre filling and recycling plant in South Carolina, the US.

Trade deal with EU a hit so far

06:00 | 07/03/2023 Vietnam and EU

(VEN) - Vietnam's exports to the EU have seen positive growth more than two years after the EU-Vietnam Free Trade Agreement (EVFTA) took effect in August 2020. Vietnam Economic News’ Nguyen Hoa spoke with Nguyen Anh Duong, Head of the Central Institute for Economic Management’s (CIEM) Department for General Economic Studies about these developments.

Vietnam slow to exploit Pacific Rim trade opportunities

06:00 | 09/03/2023 Vietnam and other regions

(VEN) - Vietnam is looking back at the first three years of the Pacific rim trade deal known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with a sense of accomplishment, but also frustration at unmet challenges.

Trade deal with UK bolsters Vietnamese exports

06:00 | 08/03/2023 Foreign trade

(VEN) - The United Kingdom is the world’s fourth largest importer, but Vietnam’s share accounts for less than one percent of its total import value, signaling ample room for increased Vietnamese exports to this market.

Vietnamese pomelos star in UK market

06:00 | 06/03/2023 Vietnamese Brands

(VEN) - First Dien pomelos from the northern province of Hoa Binh are now available on the shelves of Longdan supermarkets in the UK, welcomed by the Vietnamese community in the country and local consumers.

Credit crunch burdens real estate market

06:00 | 03/03/2023 Finance-Banking

(VEN) - Credit plays a major role in the recovery of the real estate market, but in light of major debts, experts are advising that capital be provided only for reliable projects.

Multimedia

Video Longform Infographic Photo

Amazingly beautiful Ninh Thuan

09:13 | 20/03/2023 Video

(VEN) - The south central coastal province of Ninh Thuan is renowned for its beautiful, pristine beaches and vast white salt fields. Visitors are recommended to travel to the province from April to June to enjoy their summer vacations, and from August to October when the grape-harvesting season falls and unique local festivals of the Cham people take place.

Tra fish exports hold promise after China reopens borders

07:00 | 20/03/2023 Infographic

Tra fish exports are expected to recover shortly with China gradually reopening its borders.

Lao Cai Province welcomes first Chinese tourists after three years

08:49 | 17/03/2023 Tourism

Eighty Chinese tourists entered Vietnam via the Lao Cai International Border Gate on March 15 afternoon, marking the return of Chinese travellers to the northern mountainous province of Lao Cai after a three-year hiatus caused by the COVID-19 pandemic.

viet nams grilled bananas among worlds most delicious desserts

Việt Nam's grilled bananas among world’s most delicious desserts

06:00 | 20/03/2023 Lifestyle

CNN described the sweet course as crispy, smoky and fragrant, and best enjoyed with lightly sweetened creamy coconut milk and roasted peanuts.

a dish to try beef ore you go buon ma thuots famous beef in tamarind sauce

A dish to try beef-ore you go, Buôn Ma Thuột's famous beef in tamarind sauce

06:00 | 18/03/2023 Lifestyle

Many restaurant owners claim that the dish's fame is due to the special marinated ingredients that can be found exclusively in this hilly part of Việt Nam.

Policy

Animal feed industry asks for import tax reduction on raw materials

09:55 | 20/03/2023 Policy

The Government has received a proposal from the Vietnam Feed Association to eliminate the import tax on soybean meal, currently set at 2%.

Over 250 petitions submitted to authorities on fragility of petroleum regulations

18:07 | 16/03/2023 Policy

The petitions concern the alteration of petroleum business restrictions in decrees No.83/2014/ND-CP and No.95/2021/NQ-CP, resulting in losses for retail establishments.

New legal documents in second half of February 2023

07:00 | 12/03/2023 Policy

VEN lists the latest legal documents issued by the Vietnamese Government, ministries and state agencies.

Companies allowed to make bond payments with other assets

07:00 | 09/03/2023 Policy

Companies shall be allowed to make bond payments with other assets, according to the Government's recently-released Decree 08/2023/ND-CP issued.

Industry & Trade

Offshore wind energy an essential base load power source: official

14:30 | 20/03/2023 Energy

Uncorking bottlenecks for support industry development

06:00 | 18/03/2023 Industry

(VEN) - Vietnam is mulling legislation to boost the low localization rate of its industrial production and means to modernize its support industries and increase their participation in the local and foreign value chain.

Da Nang greens textile-garment industry

13:00 | 17/03/2023 Energy

(VEN) - Textile and garment enterprises in the southcentral coastal city of Da Nang are seeking to green their production through the use of renewable energy, waste reduction and wastewater standardization.

High cost of construction materials puts pressure on Việt Nam's construction industry

10:13 | 15/03/2023 Industry

According to contractors and investors in Hà Nội, while the price of cement has stabilised, other essential building materials such as steel and construction sand continue to increase in price.

Investment

Da Nang hopes for further investment from RoK city

09:13 | 17/03/2023 FDI

Secretary of the Da Nang municipal Party Committee Nguyen Van Quang said he hopes that the city of Daegu in the Republic of Korea (RoK) will cooperate with the Vietnamese central city and invest more in its hi-tech sector, along with education, training and tourism.

Initiative speeds up investment disbursement

06:00 | 14/03/2023 Domestic investment

(VEN) - Prime Minister Pham Minh Chinh has asked ministries, sectors and localities to ensure the quality and effectiveness of public investment projects and achieve a higher disbursement rate in 2023.

Hanoi builds synchronous policies to draw foreign investment

07:25 | 11/03/2023 FDI

A conference linking hundreds of Hanoi and Singaporean enterprises was held in the capital city of Hanoi on March 7. The event was co-hosted by the municipal Department of Industry and Trade, the Vietnam Trade Office in Singapore, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) and the Vietnam Chamber of Commerce and Industry (VCCI).

Quang Ninh strives to complete procedures for 18 FDI projects in 2nd quarter

09:19 | 09/03/2023 FDI

The northeastern province of Quang Ninh is striving to complete investment procedures for 18 foreign direct investment (FDI) projects within the second quarter of this year.

Finance-Banking

Vietnam seeks response to corporate tax overhaul

06:00 | 20/03/2023 Finance-Banking

(VEN) - All European Union states and many other countries will introduce a global minimum tax (GMT) of 15 percent on large corporations by the start of 2024, and Vietnam is being urged to devise appropriate policies and adapt to the new taxation.

Vietnam’s regulatory interest rates to be reduced by 0.5-1 percent

07:05 | 16/03/2023 Finance-Banking

The State Bank of Vietnam (SBV) on March 14 issued two decisions to reduce regulatory interest rates by 0.5% to 1%, which will come into force on March 15.

Global Minimum Tax a head-scratcher for Vietnamese policymakers

06:00 | 13/03/2023 Finance-Banking

As many countries plan to adopt the Global Minimum Tax Rate (GMTR) in 2024, experts are concerned that the entry into force of the rate would discourage foreign companies from locating their operations in low-tax countries.

Program seeks to solve business capital needs

13:00 | 10/03/2023 Finance-Banking

(VEN) - A series of commercial banks have moved to reduce lending interest rates in response to strong messages by the Government and the State Bank of Vietnam (SBV) about supporting the economy and business sector.

Environment

Practical effective activities urged to mark World Water Day

10:03 | 20/03/2023 Environment

The Ministry of Natural Resources and Environment has asked other ministries, agencies, sectors, localities, and organisations to take practical and effective activities to mark the World Water Day (March 22), the World Meteorological Day (March 23), and the Earth Hour 2023 (March 25).

BKEET steams ahead with waste treatment

13:00 | 15/03/2023 Make in Vietnam

(VEN) - After research spanning 20 years, solid waste incinerators produced by the Bach Khoa Hanoi Energy and Environment Joint Stock Company (BKEET) are operating across the country.

Tree planting campaign targets carbon neutrality

06:00 | 13/03/2023 Environment

(VEN) - Vietnam has embarked on a nationwide tree planting campaign designed to benefit the environment and enhance the quality of life.

Can Tho, USAID foster collaboration to mitigate climate change effects

09:00 | 11/03/2023 Environment

Leaders of the Mekong Delta city of Can Tho on March 9 had a working session with a delegation from the United States Agency for International Development (USAID) led by its Administrator Samantha Power, during which the two sides discussed collaboration in climate change response and how to support people affected by the natural phenomenon.

Science - Technology

Vietnam introduces automated sorting system

13:00 | 20/03/2023 Make in Vietnam

Domestic ICT firms well-positioned to reach out to the world

06:00 | 20/03/2023 Science - Technology

Vietnam's information and communication technology (ICT) companies are well-positioned to make strong breakthroughs and reach out to the world in the near future, on the back of widespread Internet access, abundant workforce and support from authorities at all levels.

Innovation platforms boosting sustainable development announced

06:00 | 18/03/2023 Science - Technology

The Institute for Innovation and Development (IID) on March 15 held a “Drive Innovation for Impact” event to announce three digital innovation platforms boosting sustainable development.

Vietnam well-positioned to benefit from AI website

06:00 | 16/03/2023 Science - Technology

Artificial intelligence (AI) is poised to revolutionise economies, and Vietnam is well-positioned to reap the benefits and emerge a leader – both development and application, highlighted an article run at intelligent global legal research platform Lexology.com.

Flexible rules of origin, online transactions boost Vietnam-RoK trade

See also

See more news

Multimedia