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Vietnam’s free trade agreement with South Korea in effect

Staff writer |
The bilateral free trade agreement between Vietnam and South Korea (VKFTA) came into effect on Sunday, seven months after signing.

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The trade pact was signed on May 5 in Hanoi, and the two countries last week exchanged a diplomatic document to officially implement the agreement on December 20, according to both Vietnamese and South Korean trade ministries.

Both nations have finished ratifying the trade deal as per local laws, the Vietnamese Ministry of Industry and Trade said.

The VKFTA covers a wide range of initiatives, among them tariff elimination and reduction, investment, intellectual property, customs facilitation, trade safeguards, technical barriers to trade, e-commerce, competition, and institutional and economic cooperation.

The trade accord will open up 94.7 percent of Korea’s market and 92.4 percent of the Vietnamese market in terms of import volume, the South Korean Ministry of Trade, Industry and Energy said in a press release on December 16.

The East Asian country is also committed to eliminating 95.4 percent of tariffs on Vietnam, which in return will remove 89.2 percent of tariff lines to its partner country.

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