On June 25th, in Ho Chi Minh City, Vietnam - South Korea trade conference took place with the participation of more than 100 enterprises from Vietnam and Korea. This is an opportunity for businesses to cooperate in trading.
On May 5, 2015, Vietnam officially signed a free trade agreement (FTA) with Korea. This is the most preferential tariff treaty in the signed Vietnam agreements. After the signing of the Vietnam-South Korea FTA, 90-95% of tariff lines will be reduced to 0%. However, enterprises want to enjoy the preferential tariffs and goods must be clear origin and quality assurance.
Loosen the origin of goods
Compared to the FTAs between ASEAN and South Korea, the FTA between Vietnam and Korea is much preferential and the origin rules for many commodities have been loosened and taxation has been reduced rapidly and deeply. This will help Vietnam's goods become more competitive when exported to the Korean market. At the same time, Vietnamese enterprises import raw materials from Korea to produce more advantage, reduce the cost.
Bui Kim Thuy, deputy head of the Department of Commodity Exchanges of the Ministry of Industry and Trade, said: "Signing FTAs with Korea alone gives Vietnam more advantages over FTAs between ASEAN and Korea. South Korea has given Vietnam fast tax incentives and opportunities for exports, especially for agricultural products, seafood and fruits, textiles and furniture. For example, shrimp exports to South Korea are tax free for Vietnam with a quota of 10,000 tons per year and a five-year increase to 15,000 tons per year, while ASEAN is only 5,000 tons per year. " However, Vietnam now exports about 2,500 tonnes of shrimp per year to the Korean market.
Ms. Phan Thi Thanh Minh, Director of the Southern Vietnam Ministry of Industry and Trade, said: "According to the commitments, Korea will reduce 95% of its tariff lines, while Vietnam will cut 90% of its tariff lines. National. Regulations on many commodity groups are also loosened and do not require too strict origin. The agreement allows Vietnamese enterprises to import many materials from abroad, but the final production in Vietnam is also exempted from tax reduction when exported to Korea. This is the most preferential tariffs that Vietnam has signed, as other FTAs require the production of goods from the country or from the importing country.
Opportunity to export.
According to the Ministry of Industry and Trade, Korea is now the third largest trading partner and the largest direct investment partner in Vietnam. At the same time, South Korea is also in the group of three countries with the largest number of visitors to Vietnam. In 2014, Vietnam exports to South Korea over $ 7.1 billion (up 7.7% over 2013), while imports of goods originating from Korea nearly $ 22 billion. After signing the agreement, the two countries are expected to increase import-export turnover to 70 billion USD by 2020.
"In order for Vietnamese goods to be easily exported to Korea, especially agricultural products, the government has opened many products such as garlic, ginger, sweet potato and honey. Entry into Korea requires very strict. This is a great opportunity for Vietnamese businesses to boost exports to Korea, "said Moon Byung Chul, Consul General in charge of trade of the Consulate General of Korea in Ho Chi Minh City. Ho Chi Minh expressed. Lotte Mart has been linked with many Vietnamese companies to export agricultural products, fresh fruits, foodstuffs, garments and wooden products to Korea via supermarkets. Hong Won Sik, General Director of Lotte Mart Vietnam, said: "In 2014, 101 items of Vietnam's exports to South Korea through supermarkets with a turnover of $ 250,000. This year, it will connect about 200 items to Korea. " According to Hong Won Sik, Lotte Mart Vietnam is looking for reputable and high quality brands in Vietnam in various fields to link export to Korea to enjoy tax incentives.
In Dong Nai, South Korea ranks second among 40 countries and territories investing in the province with a total capital of $ 4.6 billion. Korea is also one of the major export markets for the province. From the beginning of the year, Dong Nai exported nearly $ 483 million to South Korea. Three groups of exports to this market are footwear, textiles and wood products, "said Nguyen Phuc Tho, Deputy Director of Dong Nai Customs. Some exporters have entered the Korean market, saying they are boosting exports to this market to enjoy the incentives. In particular, the biggest advantage is that many items of raw materials that are allowed to import from any country are exempted from tax.
(Source: internet)