The Vietnam-South Korea Free Trade Agreement (VKFTA) signed on May 5 officially went into effect yesterday, providing businesses from the two countries with many trade and investment incentives.

Vietnamese businesses might speed up exports of key products including footwear to South Korea after VKFTA takes effect (Photo: SGGP)

A minister level joint committee and functional subcommittees on trade, customs, trade defense, sanitary and phytosanitary measures (SPS), technical barriers to trade (TBT) and movement of natural persons have been established to review, supervise and give recommendations to boost the implementation of the VKFTA.

Two way trade turnover between Vietnam and South Korea has increased nearly 58 times, from US$0.5 billion in 1992 to US$28.8 billion in 2014.

Items posting the largest import value from South Korea in 2014 comprised computers, electronic products and components, machines, equipment and other accessories.

According to the General Department of Vietnam Customs, the Vietnam-Korean trade turnover reached US$33.6 billion in the first 11 months this year, up 27.6 percent over the same period in 2014.

Of these, exports neared US$8.2 billion and imports hit US$25.4 billion, a year on year increase of 25.2 percent and 28.2 percent respectively. Trade deficit hiked 29.3 percent to touch US$17.2 billion.