Vietnam-Korea Free Trade Agreement takes effect

Included in the agreement are rules of origin, which relate to tariffs for goods produced in either Vietnam or South Korea, and which will help boost the exports for both nations.

Firms from the two trading partners will benefit from tariff cuts, which will have an effect on the economy for both sides, as Vietnam is South Korea's third-largest export partner. Under the FTA, Vietnam will lift tariff barriers on nearly 90 percent of all products from South Korea over a 15-year period following its implementation. At the same time, South Korea will lift tariff barriers on over 95 percent of all products imported from Vietnam.