CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
Vietnam, Korea expect higher trade, investment cooperation after tax cut
Anh Hong 16:23, 2018/01/14
The tax reduction and exemption on various items imported from the Republic of Korea (RoK) from this year will help further boost trade and investment ties between Vietnam and RoK next time.
The Government has recently issued two decrees on Vietnam’s special preferential import tax lists as part of efforts to implement the free trade agreement between Vietnam and the Republic of Korea (VKFTA), and another deal between ASEAN and the RoK (AKFTA). The two decrees became effective on January 1, 2018.
 
Korean firms have invested US$8 billion each year in Vietnam in the past four years
Korean firms have invested US$8 billion each year in Vietnam in the past four years

 
Decree No. 149/2017/ND-CP details preferential taxes of Vietnam to implement the VKFTA while Decree No. 157/2017/ND-CP defines preferential taxes to conduct the ASEAN-RoK Trade in Goods Agreement as part of the AKFTA in 2018-2022.
Under the decrees, more than 700 tariff lines applicable for goods imported from RoK will be cut to zero percent in 2018. Imported goods subject to new import tariffs mainly are seafood, wheat, confectionary products, diesel fuel, jet fuel, paint, laundry detergent, iron and steel products, electrical machinery, and electronics.
According to experts, Vietnamese and Korean firms will enable to exploit the trade and investment incentives that the two countries have offered each other, further strengthening the bilateral cooperation on trade and investment.
After two-year validity of VKFTA, the bilateral economic cooperation between Vietnam and Korea has made positive and strong progress. Vietnam is considered an open market for Korean businesses.
Nguyen Van Toan, Vice Chairman of the Vietnam Association of Foreign Investment Enterprises, said that KoR firms have invested US$8 billion each year in Vietnam in the past four years.
After 25 years of Vietnam and RoK’s economic ties, RoK’s investment capital in Vietnam now increases to some US$60 billion, 120 times higher than that in 1992. Bilateral trade between the two countries also surges 117 times to US$58.5 billion 
South Korea’s foreign direct investment (FDI) in Vietnam has occurred in three waves. The first wave occurred after the lifting of the US embargo, which focused on labor-intensive sectors such as textiles and garments, followed by Vietnam ascension to the WTO wherein investors focused on the manufacturing of electronic goods. The third wave currently focuses on manufacturing as well as consumer goods, retail, and services.
Some 5,000 South Korean companies have invested in Vietnam in the last 25 years. According to the Vietnam Chamber of Commerce and Industry, Korean-invested firms in Vietnam in 2016 contributed almost a third of Vietnam’s exports and provided around 700,000 jobs domestically.
Manufacturing accounts for 70 percent of the cumulative South Korean investments since 1988, followed by real estate management and construction sector at 14.8 percent and 5.4 percent respectively.
Apart from manufacturing, which accounted for 82.3 percent of investments in 2016, there has been a growing interest by South Korean companies in the services and distribution sectors along with, wholesale and retail, culture, and science and technology. In addition, 2017 has seen a considerable interest in the food and finance & banking sectors.
South Korean firms are also looking to increase their investments in the agriculture, forestry, and fishery sectors, taking advantage of the preferential tariffs of VKFTA./.
Caption: Korean firms have invested US$8 billion each year in Vietnam in the past four years.
Comments
Other news
12:17, 2025/02/25
Vietnam eyes top 3 in investment environment in ASEAN next 2 years: Party Chief
A key objective is to trim off at least 30% of administrative procedures and cut both business costs and unofficial fees.
18:03, 2025/02/22
Vietnam attracts South Korean tech investment at SEMICON Korea 2025
The event provided a platform for Vietnam to showcase its semiconductor potential and reaffirm its commitment to developing high-tech industries and strengthening international cooperation.
16:46, 2025/02/20
Swedish group plans US$1 billion investment in Binh Dinh recycling plant
By creating a large number of jobs and promoting a green economy, the initiative is important in establishing Vietnam as a global hub for the circular textile sector.
10:52, 2025/02/13
Samsung plans to invest in AI, semiconductors in Vietnam
Vietnam will continue improving its investment environment and driving strategic breakthroughs in order to usher in a new era of economic development.
17:20, 2025/02/07
Vietnam's data center construction costs among the lowest in Asia Pacific
The country has a lot of potential to become one of the most important data markets in the region.
21:05, 2025/02/03
Bright prospects for FDI inflows into Vietnam in 2025
Market size, growth potential, low labor costs, and stable political and social conditions continue to be Vietnam’s selling points in attracting foreign investors.