(VOVworld) – Vietnam and the Republic of Korea have signed a free trade agreement following two years of negotiations. The agreement was signed on Tuesday by Vietnam’s Minister of Industry and Trade Vu Huy Hoang and the Republic of Korea Minister of Industry and Energy Yoon Sang-jick in the presence of Vietnamese Prime Minister Nguyen Tan Dung and representatives of the two countries’ relevant ministries.

This was the first FTA Vietnam had signed so far this year. The agreement will help both countries improve their business environment as well as and allocate and utilize social resources more effectively, boosting economic restructuring to increase added value and move towards sustainable growth. It is also expected to generate more jobs and increase incomes for Vietnamese workers. Minister of Industry and Trade Vu Huy Hoang said: “We have also discussed a number of measures to promote trade, economic, and investment cooperation including the Republic of Korea’s commitment to helping Vietnam develop its support industries, in which Vietnam is still weak. The agreement will greatly benefit Vietnam’s agriculture, rural development, and industries that employ large numbers of workers such as garments and textiles.”

The signing of the Vietnam-Republic of Korea FTA is part of Vietnam’s international integration strategy to aid domestic economic restructuring and boost industrialization and modernization.

At a reception for the Korean Minister, Prime Minister Nguyen Tan Dung said the agreement would create a new momentum for bilateral cooperation, particularly in economics, trade, investment, and tourism. He said that Vietnam wanted to work closely with the Republic of Korea to deepen bilateral ties for their mutual development.