Vietnam has signed most free trade agreements (FTA) in the Asia
Pacific region. Suresh Kumar, TMF Vietnam Managing Director,
outlines the major FTAs, their benefits and impact on business in
2016.
1. Vietnam–Korea free trade agreement
The Vietnam-Korea FTA was signed on 5 May 2015 to attract Korean
investors; their management expertise and high technology to the
country. The agreement will help create job opportunities and
increase employee wages. Particularly for unskilled workers, this
can assist in easing and eradicating rural poverty.
Under the FTA, Vietnam will liberalise 89.2% of all products
imported from Korea. This includes: materials for apparel and
plastic production, electronics, home appliances, certain steel
products, electrical cables, auto parts, trucks and passenger cars
of no more than 3,000 cubic centimetres. As most of the imports
from Korea are materials for domestic production, the agreement
will help Vietnam reduce its reliance on certain
