Vietnam and RoK Aim for Bilateral Trade Turnover of US$100 Billion in 2023

Deputy Minister of Industry and Trade Do Thang Hai had a meeting with Yu Jeoung Yeol, president of Korea Trade-Investment Promotion Agency (KOTRA). Photo: congthuong.vn

At the meeting, Deputy Minister Do Thang Hai said that the cooperation between Vietnam and RoK, especially in economy and trade, has developed rapidly. This happened since the two countries upgraded their relations to a Strategic Cooperation Partnership in 2009, and S. Korea is one of Vietnam's most important partners. The RoK is the largest foreign investor; Vietnam's third largest trading partner after China and the United States.

RoK FDI enterprises in Vietnam contribute more than 30% of the total export turnover of Vietnam. Major Korean economic groups such as Samsung, LG, Hanwha, Doosan, and Posco play an important role in the development of Vietnamese localities. They help Vietnam participate more deeply in the global value chain, especially in electronics, auto parts, and mechanics.

The RoK is also one of the few countries participating in the signing of bilateral and multilateral Free Trade Agreements (FTAs) with Vietnam such as the ASEAN-Korea FTA, the Vietnam-Korea FTA (VKFTA), the Regional Comprehensive Economic Partnership (RCEP).

Deputy Minister Do Thang Hai said that RoK is one of the most important partners of Vietnam. Photo: congthuong.vn

KOTRA President Yu Jeong Yeol also said that the two countries' relations have recently developed, including in economy and trade.

According to the Ministry of Industry and Trade, in the first two months of 2022, bilateral trade turnover continued to grow strongly when the total import and export turnover of Vietnam and the RoK reached US$13.8 billion, up 19.03% compared to the same period in 2021.

Vietnam's export turnover to the RoK reached US$3.7 billion, up 15.7%, and imports from RoK reached US$10.1 billion, up 20.3%.

In 2021, the bilateral trade turnover between Vietnam and the RoK reached US$78.1 billion, up 18.33% compared to 2020.

Vietnam's export turnover to the RoK reached US$21.9 billion, up 14.9%, and import turnover reached US$56.2 billion, up 19.7% over the same period in 2020.

KOTRA President Yu Jeong Yeol wishes to receive the attention and cooperation of the Ministry of Industry and Trade. Photo: congthuong.vn

The President of the Korea Trade-Investment Promotion Agency (KOTRA) wishes to receive the attention and cooperation of the Ministry of Industry and Trade in taking advantage of FTAs. This aims to soon fulfill the goal of bilateral trade turnover of US$100 billion.

Regarding this issue, Deputy Minister Do Thang Hai said that in Vietnam, the RCEP has officially taken effect from January 1, 2022. It is expected to play an important role in the economic development of Vietnam with its member partners, including the RoK.

“Vietnam and the RoK need to strengthen cooperation to support businesses of the two countries to make good use of incentives from the RCEP as well as the VKFTA. The two countries consider this as a tool to contribute to fulfilling the goal of bringing bilateral turnover to US$100 billion by 2023," said Deputy Minister Do Thang Hai.

To realize this goal, Deputy Minister Do Thang Hai also made 4 proposals. He proposed to strengthen the attraction of RoK enterprises to invest in Vietnam; supporting RoK enterprises in Vietnam to maintain production in the context of the pandemic, and increase export value to the RoK.

In addition, it is necessary to create favorable conditions for Vietnamese enterprises to export 15 potential products to the RoK. He also proposed increasing technology transfer and technical assistance from the RoK to improve the competitiveness of Vietnam's automobile, textile, chemical, mechanical and manufacturing industries.

"I hope KOTRA will support and coordinate with the Ministry of Industry and Trade to successfully implement specific activities to realize this goal," said Deputy Minister Do Thang Hai.

Deputy Minister Do Thang Hai also hoped that the President of KOTRA would continue to support Vietnam, and the Ministry of Industry and Trade particularly. Those are the supports in cooperation activities on trade, investment, and activities celebrating the 30th anniversary of the establishment of diplomatic relations between Vietnam and the RoK.

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