ASEAN – Korea trade is booming

According to the Vietnamese Ministry of Industry and Trade, with the present increase in trade between ASEAN and Korea, the goal of accelerating it to $200 billion is anticipated to be achieved before the 2020 deadline.

Speaking on the ASEAN-Korea Economic Partnership Forum at HCM City yesterday, Nguyễn Sơn, deputy director general of the ministry’s Inter-Agency Steering Committee on International Economic Integration, said ASEAN and Korea are key partners in lots of sectors, including trade, investment and tourism, culture and construction.

Trade between the 2 sides increased from $8.2 billion in 1989 to $138 billion in 2014.

The bloc has overtaken the US, EU and Japan to develop into Korea’s second-largest trading partner after China, he said, adding that the country is ASEAN’s fifth-largest partner.

ASEAN is a number one investment destination for Korean corporations. Last 12 months, Korea invested $5.7 billion in ASEAN member countries, rating fifth amongst investing countries and territories, even though it was the biggest in some, reminiscent of Vietnam.

Jeong-in Suh, Extraordinary Plenipotentiary Ambassador of Korea to ASEAN, said that ASEAN is just not only a market but in addition a production base for Korean corporations.

ASEAN offers opportunities but in addition challenges for Korean corporations, he said, adding that Korean corporations have to have a long-term strategy for the market of 630 million people.

Professor Bunsoon Park from Korea University said that as a consequence of its young population and rapid development, ASEAN is a promising marketplace for all investors.

He said that because Japanese corporations began investing within the region a protracted time ago, they’ve a bonus over Korean corporations, which subsequently must put more effort into penetrating the market.

Delegates said that developing partnerships with local enterprises is a crucial factor for ASEAN market penetration.

Vietnam-Korea trade

Sơn said Vietnam is certainly one of Korea’s most significant trading partners within the ASEAN bloc.

Since the South Korea-ASEAN Free Trade Agreement got here into force in 2007, trade between Vietnam and Korea has been growing at an annual rate of about 19 percent, and has continued to achieve this even throughout the global economic crisis, he said.

The variety of Korean corporations investing within the high-tech and services sector is consistently growing, which has helped change the economic structure in lots of localities, he said.

“We expect that major projects from leading Korean groups such as Samsung and LG will help develop Vietnam’s parts supply industry and enable Vietnam to participate in the global value chain.”

He said the Vietnam-Korea Free Trade Agreement, which got here into force this 12 months, will boost bilateral trade.

Vietnam has signed 12 free trade agreements, 10 of which have entered into force, with nearly 60 economies, he said.

Investors within the Vietnamese market would mechanically profit by doing business with Vietnam’s partners under the free trade agreement, he said.

Phạm Khắc Tuyên from the Ministry of Industry and Trade said that along with large groups, many Korean SMEs are also exploring investment opportunities in Vietnam.

He urged Korean corporations to speculate in supporting industries and transfer technology to Vietnamese corporations.

Agriculture and seafood are among the many promising sectors for Korean corporations, he said.

Vietnam and Korea plan to trade bilaterally value $70 billion by 2020, up from $36.5 billion last 12 months. —VNS