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Korean businesses believe the attractive retail market in Vietnam
The Hanoitimes – When the online business trend is growing, Korean companies see more opportunities to invest in the Vietnamese retail market.
Vice President of Korea Trade-Investment Promotion Agency (KOTRA) Won-Sok Yun expressed his belief on the sideline of KOTRA trade show held in Hanoi on March 22.
Vietnam economy is in the period of development, the income of people is increasing, so meeting the demand for shopping also increasing, according to Won-Sok Yun.
“This is a golden opportunity for foreign companies in general and South Korea in particular to invest in Vietnam’s potential retail market,” said Yun Won-Sok.
In recent years, Korean retailers such as Lotte, Emart … mainly invested in the Vietnamese market in the form of offline stores – store system in Vietnam – to meet the demand of people. However, this trend will gradually be replaced in the near future, because the e-commerce industry is booming with various forms of online business.
“Hopefully with the development of the 4.0 industry, the retail market will continue to be an attractive destination, a place where Korean and Vietnamese enterprises have the opportunity to cooperate, invest and develop,” KOTRA’s vice president told Hanoitimes.
Many experts in the workshop also commented on the benefits of Free Trade Agreements (FTA). Compared to FTA ASEAN – Korea (AKFTA), Vietnam and Korea (VKFTA) has its own benefits, especially tariffs, according to Eunsil Park, Specialist of the Vietnam-Korea FTA Consultation Center.
In particular, the FTA tariff rate between South Korea and Vietnam is lower than the FTA between Korea and ASEAN. In addition, with the exemption of certificates of origin, VKFTA allow goods not exceed more than US$600 are exempted from certificate of origin instead of US$200 as in the AKFTA.
The workshop attracted 60 Korean companies and more than 200 Vietnamese companies operating in the areas of electronics, information technology-information security, bio-medical technology, capital construction and construction, machines, energy… have the opportunity to exchange information on the possibility of cooperation in trade, investment, promotion of the project.
The seminar was held during a State visit to Vietnam of President Moon Jae-in of South Korea from March 22 to 24, at the invitation of President Tran Dai Quang.
“This is a golden opportunity for foreign companies in general and South Korea in particular to invest in Vietnam’s potential retail market,” said Yun Won-Sok.
In recent years, Korean retailers such as Lotte, Emart … mainly invested in the Vietnamese market in the form of offline stores – store system in Vietnam – to meet the demand of people. However, this trend will gradually be replaced in the near future, because the e-commerce industry is booming with various forms of online business.
“Hopefully with the development of the 4.0 industry, the retail market will continue to be an attractive destination, a place where Korean and Vietnamese enterprises have the opportunity to cooperate, invest and develop,” KOTRA’s vice president told Hanoitimes.
Many experts in the workshop also commented on the benefits of Free Trade Agreements (FTA). Compared to FTA ASEAN – Korea (AKFTA), Vietnam and Korea (VKFTA) has its own benefits, especially tariffs, according to Eunsil Park, Specialist of the Vietnam-Korea FTA Consultation Center.
In particular, the FTA tariff rate between South Korea and Vietnam is lower than the FTA between Korea and ASEAN. In addition, with the exemption of certificates of origin, VKFTA allow goods not exceed more than US$600 are exempted from certificate of origin instead of US$200 as in the AKFTA.
The workshop attracted 60 Korean companies and more than 200 Vietnamese companies operating in the areas of electronics, information technology-information security, bio-medical technology, capital construction and construction, machines, energy… have the opportunity to exchange information on the possibility of cooperation in trade, investment, promotion of the project.
The seminar was held during a State visit to Vietnam of President Moon Jae-in of South Korea from March 22 to 24, at the invitation of President Tran Dai Quang.
Source: http://www.hanoitimes.vn/economy/trade-service/2018/03/81E0C393/korean-businesses-believe-the-attractive-retail-market-in-vietnam/