Vietnam has established great trade relationships with more than 100 countries such as the Bilateral trade agreement (BTA) with the US in 2000, the World Trade Organization in 2007 etc. and it has been considered to be one of the largest export oriented economies in ASEAN and this was highly influenced by the free trade agreements that Vietnam has involved itself. The Vietnamese market has a significant role in Korea’s market. Because of Vietnam’s openness to trade and investment policies, it will be easy for more Korean companies to enter the Vietnamese market and export goods. Vietnam is Korea’s 4th largest foreign investment destination and 3rd largest export market. Vietnam and Korea has been in the business of trade surplus since the 1980s.
The Vietnam Korea Free trade agreement is just one of the many free trade agreements and acts as a cornerstone in the bilateral relation that promises to bring about positive impacts on both of the countries. Vietnam has been one of the largest export of other countries including China, Hong Kong and the United States. Vietnam in 2010 belonged in the top ten largest export markets and was clearly presenting itself as the fastest growing export partner for the Republic of Korea. Even though Vietnam has had achievements on its trade relations with other countries, its economic integration has not been sustainably positive. Its ability to cope up with the economy’s market and to boldly take opportunities is still weak. It seems that Vietnam has not taken advantage of long term benefits hence its slow renovation and innovation.
The Vietnam-Korea Free Trade Agreement is considered to be a strong move in the support of the process of restructuring, implementing industrialization and proactive incorporation system and for the modernization of the country. While still contributing to the partnership of both countries, Vietnam and Korea, to sustain the implementation of economic stability and environmental peace. This free trade agreement also has a high level of commitment to balance the interests of both countries. It is expected to have and bring positive impacts on not just the trade between both countries but also on the economic status of Vietnam.
After a month of signing into the free trade agreement, the import and export of goods between Vietnam and Korea were well. About 87 percent of manufacturing and industrial goods were exported to Korea from Vietnam and less then 15 percent were fishery goods. This explains how the Vietnam Korea Free trade agreement has been a really good step, especially for Vietnam since it will benefit them the most. The Republic of Korea gave assurance to Vietnam to have higher level of technology and promised to support Vietnam in its capacity to improve through the implementation of Economic cooperation commitments. Korea’s investments to Vietnam has been consistently ascending for the past years and it is one of the reasons of why Vietnam has experienced booming that also contributed to their economic growth. According to a report on December 2015, Vietnam has reached 6.68 percent of its gross domestic product and it has been the highest in the past five years. Vietnam’s economy has been performing well due to the country’s recovery and well sustained reforms.