Vietnamese shippers updated on RoK market demand
Vietnamese exporters were provided with updated information on import trends and market demand in the Republic of Korea (RoK) at a workshop in Hanoi on July 14th.
Held by the Department of Trade Promotion under the Ministry of Industry and Trade (MoIT), the event was designed to introduce advantages from the Vietnam-Korea Free Trade Agreement (VKFTA), helping Vietnamese businesses maximise opportunities resulting from the pact and boost exports to the RoK.
Bui Kim Thuy, a representative from the Export and Import Department under the MoIT, said the agreement brings great opportunities and tax incentives for exporters but noted that Vietnamese import-export enterprises will need to strictly abide by origin of goods regulations.
According to Pham Khac Tuyen from MoIT’s Asia–Pacific Market Department, the RoK committed to provide tax cuts, creating export opportunities for key farm and aquatic products such as shrimp, crab, fish, tropical fruits and industrial products such as textiles and wooden and mechanical products.
Vietnam is the first FTA partner of the RoK allowed to sell special products such as garlic, ginger, honey and sweet potato in the country. Vietnam pledged to reduce taxes on raw material commodities for textiles and footwear; engines and automobile spare parts; and electrical equipment.
Participants said Vietnam would be able to export other products to the RoK through distributors such as E-Mart, Lotte Mart and trade associations.
They also stressed the need for Vietnamese shippers to improve the quality of their products and keep to standards of food sanitation safety and origin in order to join the distribution chain.
According to statistics from the Department of Trade Promotion, Vietnam shipped about 40 different commodities to the RoK in 2014, raking in 7 billion USD and representing a year-on-year increase of 7.7 percent.
With preferential taxes and transparency in technical barriers, the VKFTA will help widen opportunities for Vietnamese exports to the RoK and increase Vietnamese product competitiveness./.