Vietnamese fresh produce exporters are hoping to capitalise on tariff reductions in the South Korean market, following the implementation of a free trade agreement between the two nations, which is expected to see the value of bilateral trade double over the next five years, according to media reports.
The trade pact entered force on 20 December 2015, bringing tariff reductions to a wide variety of Vietnamese fruit and vegetable exports. The benefits for South Korean fresh produce exporters were less apparent; with tariff reductions skewed more towardsmaterials for apparel, automobile and plastic production.
Red capsicums and onions were exempt from the FTA negotiations, with both countries looking to protect their local production of the vegetable varieties.
According to Nikkei Asian Review the FTA could see the value of trade between the two countries rise to US$70bn within the next five years, up from US$28.8bn in 2014.
The deal is also likely to bolster the level of South Korean foreign direct investment in Vietnam. South Korea is now the major source of foreign investment in the South East Asian nation, having surpassed Japan and Singapore in 2014.
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