The Vietnam-Korea Free Trade Agreement (VKFTA), in force since 2015, removes or reduces tariffs on the large majority of goods traded between the two countries. For a company sourcing from Vietnam and selling into South Korea, or bringing Korean components into a Vietnam-based supply chain, it is one of the more direct ways to lower landed cost on qualifying products.
What actually changes under the agreement
The VKFTA cuts tariffs on a wide range of categories, including textiles, agricultural products, and electronics, and it goes further than the broader ASEAN-Korea agreement on several product lines. It also includes provisions on services, investment, and intellectual property protection, which matter to companies setting up operations rather than just moving goods across the border.
The part that determines whether you actually benefit
A reduced tariff rate only applies if your product meets the agreement’s rules of origin, meaning enough of its value or production actually happened in Vietnam or Korea to qualify. Getting this wrong on the paperwork is one of the more common reasons companies end up paying full duty on a shipment that should have qualified for a lower rate.
How we handle it
We check whether your product qualifies under the VKFTA’s rules of origin before you rely on the lower rate, and we make sure the certificate of origin and supporting documentation are correct before the shipment leaves the factory.