Asean, Korean ministers consult on bilateral trade and investment
Asean, Korean ministers consult on bilateral trade and investment
Economic Ministers from the 10 Asean member states met with their Korean dialogue partners to discuss trade and investment during the 13th Asean Economic Ministers with the Republic of Korea (AEM-ROK) in Vientiane yesterday.
The consultation was co-chaired by the Minister of Industry and Commerce Ms Khemmani Pholsena and the Minister of Trade, Industry and Energy of the Republic of Korea Mr Joo Hyunghwan.
According to a joint media statement from the meeting, Economic Ministers from 10 Asean member states noted the performance of Asean-Korea bilateral trade and investment during 2015.
Total merchandise trade between Asean and Korea grew to US$122.9 billion, accounting for 5.4 of Asean's total trade and placing Korea as Asean's fifth largest trading partner while Foreign Direct Investment (FDI) flowing from Korea to Asean amounted to US$5.7 billion in 2015, placing Korea as Asean's fifth largest source of FDI.
They also welcomed the entry into use of the Third Protocol to Amend the Asean-Korea Trade in Goods Agreement (AKTIGA) for Thailand and Korea, Myanmar, Singapore, Laos, Philippines and Malaysia.
With the introduction of the new commitments on customs procedures and trade facilitation, as well as the inclusion of the parties' line-by-line tariff reduction schedules, the Ministers expressed their hope that the protocol could further facilitate trade between Asean and Korea, thus helping achieve the two-way trade target of US$200 billion by 2020 as set and agreed by the leaders.
The Ministers welcomed the progress made in the negotiation for further liberalisation of “sensitive track” products under the AKTIGA, including the exchange of initial lists of products of in terest by the parties.
The Ministers underlined the importance of enhanced participation of business communities and reaffirmed the leaders' view that the Asean-Korea Business Council should be utilised to further promote cooperation among the private sector and micro, small and medium enterprises.
Collaboration among the parties may also include human resource development, the sharing of best practices as well as participation in the regional value chain.
They noted the goods progress made on economic cooperation between Asean and Korea, including project activities funded under the Asean-Korea Economic Cooperation Fund.
Laos and the Republic of Korea have continued expanding mutually beneficial economic cooperation, after trade and investment between the two countries has steadily increased, according to the Lao National Chamber of Commerce and Industry.
Lao exports to the Republic of Korea in 2015 were valued at US$22.9 million, an increase of 52.5 percent compared to 2014. The main exports included potassium fertilisers, coffee, lead bullion and scrap, fabric and vegetable ingredients for oriental medicines.
The Republic of Korea is the fourth ranked country for investment in Laos, with some 257 projects having a combined value of US$800 million. Trade volumes between the two countries reached US$199 million last year, according to the Ministry of Industry and Commerce.
Meanwhile, Korea Trade-Investment Promotion Agency reported recently there were more than 100 Korean companies each year seeking business partners in Laos.
The Korean Statistical Information Service reported in 2015 that the Republic of Korean exports to Laos, valued at US$170 million, increased by 9.2 percent compared to 2014.
The main exports included passenger vehicles, trucks, motors, automobile parts, and construction equipment.
