Last updated: Tuesday, March 19, 2019


Only 24 Pct of Vietnamese Enterprises Benefit from VKFTA and 28 Pct from AKFTA

Posted: Monday, May 21, 2018

Only 24 per cent of Vietnamese enterprises benefit from the Vietnam – Korea Free Trade Agreement (VKFTA) and 28 per cent from the ASEAN-Korea Free Trade Agreement (akfta), as presented at the Seminar on Utilisation and Implementation of Vietnam - Korea Free Trade Agreement recently held by the Asia-Africa Market Department, Ministry of Industry and Trade, in coordination with the Korea Trade-Investment Promotion Agency (KOTRA) and Vietnam Chamber of Commerce and Industry, Ho Chi Minh Branch (VCCI-HCM).

Mr Le An Hai, Deputy Director of Asia - Africa Market Department, gave an overall assessment of trade cooperation between Vietnam and Korea for the past years. VKFTA, which entered into force in late 2015, has brought new opportunities for the business community of the two countries. The two sides hope to increase bilateral trade to US$72 billion in the coming time.

Currently, although Vietnam runs a trade deficit with Korea, the import and export structure between the two countries is complementary to each other.
By the end of 2017, Korea was the largest investor out of 125 countries and territories investing in Vietnam, with a total registered capital of US$57.6 billion for more than 6,500 projects with major investors, namely Samsung, LG, POSCO, etc.

According to the Myongji University, Korea, the utilisation rate of Vietnam-Korea FTA preferences in exports from Vietnam was 58.8 per cent in 2016. A survey by Shinhan Customs Service found that 72 per cent of surveyed Vietnamese enterprises were able to take advantage of VKFTA's preferential tariffs, but only 24 per cent took advantage of VKFTA and 28 per cent from AKFTA.

Mr Le An Hai affirmed that the Vietnamese government is committed to supporting export activities of enterprises, such as the issuance of Resolution 19 (2017) and Resolution 35 (2016) on business environment improvement and business development.

Mr Hai also said that Vietnam enjoys the most tariff preference in textile and garment exports to Korea. In the opposite direction, Korea took advantage of machinery, equipment and spare parts tariff preference.

Mr Nguyen Quan Phuc, representative of the Ho Chi Minh City Export-Import Management Department, informed that from March 8, 2018, the issuance of certificate of origin (C/O) will comply with Decree 31/2018/ND-CP detailing the Law on Foreign Trade Management on Origin. Transitional period of legal documents on procedures for issuing VK C/O will last until June 30, 2018.

At present, there are four organisations authorised to issue C/Os which are regional import-export management offices, Hanoi IZ/EPZ Authority, Hai Phong Department of Industry and Trade; Economic/Industrial/Export Processing Zones Authorities and VCCI.

Mr Phuc also instructed enterprises to register trader dossiers and how to use eCOSys online software to apply for C/O, change C/O registration place to save time.

Dossiers of application for C/O VK include basic vouchers (application, C/O VK form, customs declaration, commercial invoice, etc) and voucher of origin (declaration VK origin criteria, certification of production process, origins of raw materials suppliers in the country).

In addition, Mr Phuc also pointed out some issues related to language errors describing the goods, the name of the exporter; how to write FOB value on C/O; uniform code, origin criteria, or multiple items on a C/O.

Nguyen Viet Hung

Other news

Forthcoming events

Yen sao Khanh Hoa
My Le
Vietnam Export Gateway
Sunny World Property Development Corporation
Tong cu DL