The Vietnam Textile and Apparel Association (VITAS) and the Korea Federation of Textile Industries (KOFOTI) have signed a memorandum of understanding (MoU) to strengthen bilateral cooperation, KOFOTI announced on August 24.

President of the Republic of Korea (RoK) Yoon Suk Yeol and his spouse are paying a state visit to Vietnam from June 22-24 at the invitation of President Vo Van Thuong. This is the first State visit to Vietnam by the RoK President, and Vietnam is also the first Southeast Asian country that the leader has visited since he took office in May 2022.

Vietnam and the Republic of Korea (RoK) have become top important partners of each other in various fields, with economic, trade and investment cooperation serving as both pillar and primary driver of their increasingly growing relationship, said Vietnamese Minister of Industry and Trade Nguyen Hong Dien.

With Vietnamese goods making up only 2.7% and 3.3% in Japan and the Republic of Korea, respectively, there remains a wealth of opportunities open for Vietnamese exports to enter these promising markets, according to the Ministry of Industry and Trade (MoIT).

Since the Republic of Korea (RoK) started to invest in Vietnam in the 1990s, especially since the two countries set up their bilateral diplomatic relations in 2009, the country has become an important investor of Vietnam with capital rising year after year.

The Vietnam-Korea Free Trade Agreement (VKFTA) turned seven in May of this year. Since it came into force in 2015 it has changed the face of trade between South Korea and Vietnam.

The Vietnamese Government for its part would create utmost conditions for South Korean companies to succeed in Vietnam and commit long-term presence in the country.

VKFTA, which became effective on December 20, 2015, is one of Vietnam’s first bilateral free trade agreements with an economic partner. Vietnam and South Korea are scheduled to apply the revised Product Specific Rules (PSR) under the Vietnam-South Korea Free Trade Agreement (VKFTA), which establishes the rule of origin requirements for products from August 1.

Vietnam and the Republic of Korea must work to support both nations' businesses by utilizing incentives from free trade agreements (FTAs) toward the bilateral trade target of US$100 billion by 2023, said Deputy Minister of Industry and Trade Do Thang Hai.

In spite of Vietnam’s prolonged trade deficit with the Republic of Korea (ROK), it is still no big concern as the Northeastern Asian economy aims to swell its investment and exports to its strategic partner for production and re-exports.