Asean, S. Korea trade value set to rise sharply
Asean, S. Korea trade value set to rise sharply
The total trade volume of the Association of Southeast Asian Nations (Asean) with the Republic of Korea is projected to increase to US$200 billion in the next three years, the Asean-Korea Centre reported on its website recently.
The trade volume between the two regions has increased sharply since Asean and Korea initiated sectoral dialogue relations in November 1989.
A statement issued at the 18th Asean-Republic of Korea Summit in Vientiane last year noted that the value increased to around US$122.9 billion in 2015.
However, the centre’s website reported that the value was only about US$8.2 billion in 1989.
Laos, as a member of Asean, has also experienced an increasing trade value with Korea.
The Ministry of Industry and Commerce reported that Laos’ imports from Korea had a value of over US$308.86 million in the four years from 2013-2016.
The value has increased considerably each year and last year it stood at more than US$80.85 million, up from about US$49.14 million in 2015. However, the value was over US$95.57 million in 2013.
There were about 74 types of imported products with the main ones being vehicles and spare parts, polyester, household products, food, drinks, electronic products, fuel, clothes, furniture, prescription drugs and some chemicals.
Meanwhile Laos’ exports to Korea were almost US$3 million in 2013 and soared to almost US$7 million last year. The highest value was more than US$9.72 million in 2014.
The total value was around US$25.89 million in the four years from 2013-2016 from 49 types of export products, mainly metals, charcoal, coffee, garments, timber, crops, copper ore, furniture, food, silk and fishery.
The Asean Korea Centre noted that Asean and Korea are key partners in economic cooperation in the areas of trade, investment, and construction.
Since the Asean-Korea FTA came into full force in 2009, economic cooperation has expanded in various areas such as investment and services, making Asean the second largest investment destination.
Korea has agreed on the framework for the provision of continued assistance for socio-economic development in Laos.
Laos and Korea will further enhance their cooperation in economic development after the value of trade between the two countries increased sharply over the last decade.
Some 100 Korean businesses are currently operating in Laos.
Korea is also organising workshops and capacity-building programmes to support micro, small, and medium d entrepreneurs in Laos to enhance their competitiveness and gain greater access to the Korean market.
Korea is amongst the top countries providing Official Development Assistance to Laos, with its assistance having increased every year.
Aside from the grant assistance, the government of the Korea has also provided a low-interest loan policy to help promote socio-economic development in Laos.
