Vietnam and South Korea officially begin negotiations for a Free Trade Agreement (FTA).

On August 6th, in Hanoi, Vietnam and South Korea officially launched negotiations on a bilateral free trade agreement (FTA), chaired by Minister of Industry and Trade Vu Huy Hoang and Minister in charge of trade, Ministry of Foreign Affairs and Trade of South Korea Bark Tae Ho.

Minister Vu Huy Hoang and Minister in charge of trade, Ministry of Foreign Affairs and Trade of South Korea, Bark Tae Ho, officially launched the FTA negotiation process (Photo: Duc Duy/Vietnam+).

At the meeting, the two ministers agreed to negotiate a free trade agreement consistent with World Trade Organization rules and to improve commitments in the ASEAN-Korea Free Trade Agreement, while taking into account the sensitive areas of each country and the differences in development levels between the two nations in areas such as trade in goods, services, investment, rules, and economic cooperation.

In particular, the two ministers also agreed to hold the first round of negotiations soon to discuss in detail the scope and areas covered by the Agreement, as well as the structure and methods of negotiation.

According to South Korean Minister of Trade and Foreign Affairs Bark Tae Ho, since the two countries established diplomatic relations in 1992, bilateral trade between them has increased from $500 million to nearly $18 billion in 2011.

"Continuing to liberalize trade and investment through the Vietnam-Korea Free Trade Agreement will play a crucial role in achieving the goal of exceeding US$20 billion in bilateral trade before 2015, as set by the senior leaders of both countries," Minister Bark Tae Ho emphasized.

On the Vietnamese side, Minister of Industry and Trade Vu Huy Hoang also affirmed that the negotiation process will be accelerated so that the bilateral free trade agreement (FTA) between Vietnam and South Korea can be signed soon, in order to meet the interests of both sides.

Currently, Vietnamese goods imported into South Korea account for a modest proportion of less than 1% (equivalent to $4.7 billion in 2011) of South Korea's total import value.

Also in 2011, bilateral trade between Vietnam and South Korea reached US$17.8 billion, making South Korea Vietnam's fourth largest trading partner in terms of bilateral trade value (after China, the United States, and Japan).

According to (VNA)-LT