Vietnam, RoK aim for bilateral trade turnover of US$100 billion in 2023

29/04/2022    167

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.

Deputy Minister Hai made the statement during a meeting held on April 28 with Yu Jeong–Yeol, president of the Korea Trade-Investment Promotion Agency (KOTRA) .

At the function, Deputy Minister Hai emphasised that the enforcement of the Regional Comprehensive Economic Partnership (RCEP) on January 1 is anticipated to play a crucial role in Vietnamese economic development with its member partners, including the RoK.

He underlined the necessity of maximizing benefits from the RCEP and the Vietnam-Korea Free Trade Agreement (VKFTA) as a means of achieving the goal of US$100 billion in trade turnover by 2023.

Hai also put forth a number of proposals aimed at fulfilling the target by attracting RoK enterprises to invest in the Vietnamese market, supporting RoK firms in maintaining production activities amid COVID-19 challenges, and improving the export value to the demanding market.

The trade official underscored the importance of facilitating the export of 15 potential export products to the Korean market, strengthening technology transfer from the RoK, as well as sharpening competitiveness of Vietnamese automobile, garment and textile, chemical, and mechanical-manufacturing industries.

Deputy Minister Hai said the Vietnam-RoK economic ties have developed rapidly since both countries upgraded the relations to a strategic cooperative partnership in 2009, with the RoK becoming the largest foreign investor and the third largest Vietnamese trading partner behind only China and the United States.

RoK enterprises based in Vietnam have also contributed over 30% of the nation’s total export turnover, particularly through the involvement of major economic groups such as Samsung, LG, Hanwha, Doosan, Posco, and SK.

These groups have played a key role in the development of Vietnamese localities, gradually helping the country participate deeper in the global value chain, especially in the fields of electronics, auto parts, mechanics, and metallurgy.

Furthermore, both sides have signed co-operation mechanisms, including the intergovernmental committee, the dialogue on economic co-operation at a Deputy PM level, the joint committee on energy, industry, and trade co-operation, and the joint committee on the implementation of the VKFTA, all of which have contributed to developing joint ties in a sustainable manner.

In response, Yu Jeong-Yeol, president of KOTRA, stressed that Vietnam-RoK relations have grown stronger in terms of economics and trade over recent times.

The KOTRA leader expressed his desire to receive further co-operation from the Ministry of Industry and Trade in taking the full advantage of FTAs ​​to quickly fulfill the bilateral trade target of US$100 billion.

Co-operation and support for the Korea Desk Center at the Vietnam Trade Promotion Agency in organising diverse events to mark the 30th anniversary of the establishment of the Vietnam-RoK diplomatic relations and the Hallyu Expo, slated for October were also discussed at the meeting.

Source: VOV