[FTA HONG] Summary of the Korea-Vietnam FTA (FTA utilization rate, FTA utilization by industry, and summary of highlights)
Vietnam is a major trading partner of Korea and the ASEAN-Korea FTA is the first individual country upgrade negotiation since the ASEAN-Korea FTA, thus improving the level of bilateral product concessions in the ASEAN-Korea FTA.
As of 2022, Vietnam is Korea's third-largest trading partner, and according to statistics from the Korea International Trade Association (KITA), Korea exported about $60,963,680,000 to Vietnam and imported about $26,724,717,000.
As of 2022, the export utilization rate of the Korea-Vietnam FTA is 54.0% and the import utilization rate is 86.9%. When looking at FTA utilization by industry, minerals are the highest at 72.3% and textiles are the lowest at 25.1%. On the other hand, textiles are the highest at 95.3% and miscellaneous products are the lowest at 18.0%.
(Unit: Thousands of dollars)
Category | FTA | total amount | FTA preference eligible exports and imports | Apply actual FTA preferential tariffs | utilization rate(%) |
amount | amount | ||||
Export | Korea-Vietnam FTA | 60,972,092 | 14,007,018 | 7,568,153 | 54.0 |
Import | 26,725,809 | 7,568,179 | 6,575,706 | 86.9 |
A brief summary of the provisions of the Korea-Vietnam FTA related to trade in goods is as follows. However, it is intended as a guide only and companies should refer to the Agreement for the exact Agreement-specific interpretation.
Category | Contents | |
into force date | 2015. 12. 20. | |
Agreement other party | Vietnam | |
Certificate of Origin | Issuing Modality C/O | Authority - Issued |
Issuer | producer or exporter or, under its responsibility, by its authorized representative | |
Government Authorities | Vietnam (Ministry of Industry and Trade) Korea (Customs and Chamber of Commerce and Industry) | |
Form of Certificate | Uniform Certificate (VK Form) | |
Validity Period (yrs) | 1 | |
Submission Exemption | 600 U.S. dollars FOB or such higher amount as the importing Party may establish | |
Value- Content Rule | Requirement | RVC(Regional Value Content) |
Product Price | FOB | |
Calculation Modality | Build-down Method, Build-up Method | |
Origin Verification | verification method | Principles : Indirect verification (Request to the issuing authority of the exporting party) Exceptions : Direct verification (Verification visit (in exceptional cases)) |
Replied within | 6 months | |
Replied by | Customs authority (Korea) Issuing authority (Vietnam) | |
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