South Korea, Viet Nam eye closer co-operation in supply chain
South Korea, Viet Nam eye closer co-operation in supply chain
South Korea and Viet Nam could enhance their co-operation to help Viet Nam become the main link in the supply chains of South Korean businesses, especially in the automobile, electronics and garment and textile sectors. 
Insiders made the statement at a video conference on Monday to share ideas on ways to expand economic ties despite the strain caused by the COVID-19 pandemic on global business activities.
South Korean Minister of Trade, Industry and Energy Sung Yun-mo and his Vietnamese counterpart Tran Tuan Anh discussed ways to expand bilateral ties amid the growing economic fallout from the pandemic.
The two sides plan to use regulations to allow businesses to immediately exploit the combined origin of textile materials under the EVFTA, to take advantage of high quality textile and apparel materials from South Korea, serving production and export of Vietnamese textile products to Europe.
In addition, Viet Nam and South Korea will also discuss food security, rice supply, fruit, vegetables and seafood trade amid the COVID-19 pandemic.
Anh asked South Korea to accelerate assessments for risk import licensing for Vietnamese red dragon fruits and grapefruit and support activities that distribute Vietnamese goods major South Korean firms like Lotte Mart, E-Mart, Home Plus and CJ Home Shoping.
During the meeting, the South Korean side thanked Viet Nam for enabling some of its residents to enter the country for major business activities amid the pandemic, emphasising that travel by business officials is crucial to maintain the global supply chain.
The two countries also agreed to push for a system which would allow them to process certificates of origin through electronic platforms.
The measure is expected to speed up customs procedures for exporters and prevent forgery of documents, according to the South Korean Ministry of Trade, Industry and Energy.
Viet Nam is the third-largest export destination for South Korea, whose outbound shipments to the Southeast Asian country hit US$48.1 billion in 2019, down 0.9 per cent from a year earlier.
In 2019, South Korea’s overall exports sank more than 10 per cent.
The country’s outbound shipments edged down 0.2 per cent year-on-year last month and plunged up to 18.6 per cent annually to $12.2 billion in the April 1-10 period, according to the data from the Korea Customs Service.
The figure is expected to continue dropping due to the pandemic, said experts.
