Home / Knowledge / News / Textiles / South Korea-Vietnam FTA takes effect
South Korea-Vietnam FTA takes effect
21
Dec '15
South Korea’s free trade agreement (FTA) with Vietnam got underway on Sunday (December 20). According to the FTA, the 12 per cent tariff on Korean fabrics and textiles is to be eliminated within three years, and the 7 to 25 per cent tariff on auto parts is to be removed in five to 15 years, which means Korea’s intermediate goods exports to Vietnam can increase with time.

South Korea will open up its market for 499 more items including Vietnamese tropical fruits and garlic, while Vietnam will remove its duties on an additional 272 South Korean products.

Seoul will reduce import duties on more than 95 per cent of Vietnamese goods, including key export items like shrimp, fish, crab, tropical fruits, garment and textiles, and wooden products.


The FTA signed last month is expected to boost Vietnam’s exports to Korea and more than double bilateral trade over the next five years. The agreement includes some of the items that were excluded from the earlier ASEAN-Korea FTA.

Vietnam will remove import tariffs on 92.2 per cent of all products under the FTA, compared to 86.2 per cent of goods in the ASEAN-Korea FTA.

Vietnam has simplified its rules of origin and customs clearance, which will benefit textile and garments made in the inter-Korean Kaesong Industrial Complex. Korean companies specialising in cotton would benefit in price competitiveness vis-a-vis Japanese companies in Vietnam.

On the other hand, Vietnam-made garments such as men’s trousers and shirts, women’s suits, coats, jackets, blouses, and cotton yarn will get duty-free entry into the Korean market once the FTA takes effect.

For South Korea, Vietnam is the ninth-largest trading partner in the world, and second-largest among Asean nations. The volume of Korean exports to Vietnam increased three-fold from $7.16 billion in 2009 to $21.8 billion in 2013, according to the Korean Ministry of Trade, Industry and Energy.

The FTA aims to increase the bilateral South Korea-Vietnam trade to $70 billion by 2020. South Korea is the biggest investor in Vietnam, with $38 billion in more than 4,200 projects.

The FTA with Vietnam is the third such agreement Korea has set in motion On December 20, the other two being with China and New Zealand. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 26th Jul 2017

Q1 2018 revenue at Raymond soars 14%

The consolidated revenue of Raymond Limited for the first quarter of...

Textiles | On 26th Jul 2017

Textile Corp of America to create 1000 jobs in Tennessee

Textile Corporation of America Inc, a leading textile manufacturer,...

Textiles | On 26th Jul 2017

Leather & footwear industry expecting incentive package

India’s leather and footwear industry is anticipating an incentive...

Interviews View All

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X