VINACHEM

HCM CITY — The Korea-ASEAN Free Trade Agreement in2007 has significantly increased trade between the two sides, a Koreanforeign ministry official said.

Speaking at the Korea-ASEAN FTA Forum in HCM City onThursday, Lee Yun Young, deputy director general for FTA Policy in theMinistry of Foreign Affairs and Trade, said trade expanded by over 23per cent in 2008, the first year after the treaty came into force.

It was worth US$75 billion last year and is forecastto top the $100 billion mark this year, he said, pointing out it wasworth $47.1 billion in the first half, 39.4 per cent up year on year.

ASEAN became Korea's third largest trading partner in 2008 behind only China and the EU, he said.

Na Jong-tae from the FTA Implementation Division'sKorea Customs Service said trade with Viet Nam jumped from $7.2 billionin 2008 to $9.5 billion last year.

Almost two-thirds of Viet Nam's top 50 export items to Korea received preferential treatment under the FTA last year, he said.

More than 81 per cent of items exported by Korea and ASEAN members are exempt from tariffs.

"However, only a few businesses in ASEAN countries areusing the FTA effectively due to lack of understanding and knowledge,"Lee said, noting that the current utilisation rate is below 20 per cent.

If the rate reaches 90 per cent like the Korea-Chile FTA, the effect achieved by the FTA will be enormous, he said.

The two sides proposed measures to improve the rate during talks at the ASEAN Economic Ministers Meeting last month, he said.

(Source: VNS)