Steady growth witnessed in VN - S Korea economic ties

Steady growth witnessed in VN - S Korea economic ties

South Korea has underlined its status as a key trade and investment partner of Viet Nam with 187 projects worth US$667 million in the first seven months of the year, according to the Ministry of Industry and Trade.

This made it the fourth largest investor in Viet Nam for the period, a Thoi Bao Kinh Te Viet Nam (Viet Nam Economic Times) report quoted the ministry as saying yesterday.

As of July, there were 3,385 South Korean investment projects worth $25.7 billion operating in the country.

The ministry said most of the major corporate groups from South Korea have established a presence in Viet Nam, including Samsung, LG, Hyundai and Kumho Asiana.

Some of these investors plan to expand their investments in the country, it said.

In terms of trade relations, South Korea is Viet Nam's sixth biggest export market.

Since 2007, when the free trade agreement between the two countries took effect, Viet Nam's export turnover to South Korea has increased by more than 100 per cent.

According to the Viet Nam General Department of Customs, Viet Nam exported more than $3 billion worth of goods to South Korea in the first half of this year, a year-on-year rise of over 25 per cent.

Many key exports saw high growth, including crude oil with $432 million, up by more than 150 per cent over the same period last year.

This was followed by computers, electronic products and spare parts with $149 million, up 128 per cent year-on-year.

Next came cassava and cassava products ($45 million, up by 67 per cent), garments ($545 million, up 42 per cent).

Other products like vegetable and fruits, timber, footwear, bags and pepper have also recorded high export growth rates.

Officials and businesses hope the trade between the two countries will further develop as consumption habits in South Korea has changed, creating chances for many Vietnamese products such as coffee.

Last year, South Korea imported $3 billion worth of coffee from 83 nations and territories in the world.

Seafood is also another product with high export potential to South Korea.

The Viet Nam Association of Seafood Exporter and Processors said shipments of tra fish to South Korea has surged steadily in recent years. In the first half of this year, about $3 million of tra fish was exported, up 32 per cent year-on-year.

Viet Nam is now ranked the third biggest seafood exporter in South Korea.

To increase seafood exports to South Korea, domestic firms should strengthen their focus on food safety and quality, experts say.

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