The ASEAN-Korea Free Trade Area (AKFTA) removes tariffs on most goods traded between South Korea and the ten ASEAN member states, including Vietnam. South Korea is one of the largest foreign investors in Vietnam, particularly in electronics manufacturing, and AKFTA is part of the reason Korean firms have built such deep supply chains into the country over the past decade.
Where this matters in practice
If you’re sourcing components from Korea for assembly in Vietnam, or exporting Vietnamese-made goods into the Korean market, AKFTA’s tariff schedule affects your landed cost directly. Electronics, machinery, and textile inputs are common categories where the preferential rate makes a real difference versus paying the standard tariff.
A separate bilateral agreement also exists
Vietnam and Korea also have a bilateral free trade agreement (VKFTA) alongside AKFTA, and the two aren’t identical. Depending on the product, one may offer a better rate or simpler origin requirements than the other, so it’s worth checking both rather than assuming the regional deal is automatically the right one to file under.
How we handle it
We help you compare AKFTA against the bilateral VKFTA for your specific product and trade lane, and confirm the rules of origin are actually met before you build pricing around the preferential rate.