Hanoi (VNA) – The target of 70 billion USD in two-way🦩 trade is achievable if Vietnam and the Re𝕴public of Korea (RoK) optimise the bilateral free trade agreement (FTA), which was signed in October 2015 and came into force two months later.

RoK Ambassador to Vietnam Lee Hyuk made the statement in an interview with reporters from the Cong Thuong (Industry & Trade) newspaper. RoK exports to Vietnam rose by 12 percent in the first nine months of 2016 while Vietnam’s exports to the market registered growth of 32 percent compared to the same period last year, he said. Surprisingly, the RoK’s export turnover to Vietnam surpassed that of Japan, he said, describing this as the biggest accomplishment of the FTA. Vietnam sells various commodities to the RoK such as garment-textiles, crude oil, seafood, fibre, wood and timber products, whilst importing computers, electronic products and spare parts, machinery and equipment, and mobile phone components. The Ambassador said Vietnam’s exports to the RoK have contributed to the Southeast Asian country’s total export growth. From 2017 onward, 18 more commodities will enjoy tariff reductions or elimination according to the FTA, he noted. He said the RoK has become one of the biggest investors of Vietnam with total investment of over 49 billion USD. It is also the second largest official development assistance supplier for Vietnam, he said, adding that positive outcomes were seen in a number of fields such as education-training, science-technology, health, and environmental protection. Korean businesses hope the investment climate in Vietnam will be improved in the future, he said. Deputy Head of the Asia-Pacific Market Department under the Ministry of Industry and Trade Le An Hai said Vietnam and the RoK will continue to improve their political and economic ties based on their FTA commitments. Vietnam pledged to build preferential mechanisms for Korean businesses while the RoK will open the door for Vietnamese goods, he said. The Ministry of Industry and Trade, in particular, vows to create an equal business environment for Korean firms to expand, he added. From 2010 to 2015, two-way trade registered growth from 12.8 billion USD in 2010 to 36.55 billion USD in 2015. It is expected to surpass 40 billion USD at the end of 2016.-VNA