Korea-Vietnam FTA

President Park Geun-hye and Vietnamese counterpart Truong Tan Sang talk during the joint press conference held at the Presidential Palace in Hanoi on September 9.
President Park Geun-hye and Vietnamese counterpart Truong Tan Sang talk during the joint press conference held at the Presidential Palace in Hanoi on September 9.

 

South Korea and Vietnam decided to hold two additional talks in the second half of this year toward a comprehensive and high-standard free trade agreement between the two nations.

On September 9, President Park Geun-hye and her Vietnamese counterpart Truong Tan Sang held summit meetings at the Presidential Palace in Hanoi. During the agreement signing ceremony and the joint press conference, the two presidents issued a joint statement for mutual prosperity that included measures to enhance bilateral economic cooperation. 

At the summit talks, the two leaders conducted a detailed exchange of opinions about diplomatic relations between the two countries, the security situation on the Korean Peninsula, and regional and international affairs. They also agreed to strengthen partnership in a bid to promote the welfare of the people in both countries.

The two presidents decided to deepen the Seoul-Hanoi strategic cooperative partnership established in 2009, and to closely work together regarding their mutual concerns and international problems.

As for the field of economy and trade, they regarded it very highly that the goal to reach US$20 billion in bilateral trade volume was already achieved in 2012, three years earlier than initially planned. As a next step, President Park and President Truong Tan San agreed to increase bilateral trade to US$70 billion by 2020.

In order to attain the goal, both leaders agreed on accelerating conclusion of a bilateral advanced free trade agreement by 2014, along with consideration of development levels of the two nations. 

To strengthen bilateral financial cooperation, a Vietnam office of the Financial Supervisory Service will be established as early as the end of this year.

In particular, Park and Truong Tan Sang reached an agreement that Korea’s experience and technology sharing would contribute to nuclear power development in Vietnam. Both countries agreed to continue to cooperate closely with Vietnamese nuclear power development, so that the construction of ten reactors can be completed by 2030.

In addition, the two presidents made a decision to actively work together and give support in order for Korean companies to participate in energy infrastructure projects, including the construction of facilities at the Dung Quat oil refinery and thermal power plants in the southern part of Vietnam. 

They also signed memorandums of understanding so as to facilitate the construction of the 1,200MW Nghi Son-2 coal-fired power plant project between the people's committee of Thanh Hoa province and the Korea Electric Power Corporation, based on the build, operate, and transfer method. 

Finally, both sides reached the conclusion that they will push forward with the “Vietnam Happiness Program,” a project that aims to comprehensively develop the deprived areas in line with the Korean “New Village Movement" in an attempt to contribute to Vietnam’s development into an industrialized nation by 2020.

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