Legal Challenges for Domestic Laws in the Korea-Vietnam FTA Relation -Proposals on the Promotion of the Legal Cooperation-

Abstract

It has been almost a quarter century since Vietnam had launched the “Doi Moi” policy. * “This work was supported by Hankuk University of Foreign Studies Research Fund of 2011.” ** Professor, DIS HanKuk University of Foreign Studies The “Doi Moi” (Renewal or Open Door) policy started in 1986. Since then, national economic and political reform has significantly and steadily developed. During the period, Vietnam has opened its market, has developed its economy and has gradually adjusted its policies to global standards. The result is that Vietnam’s economy is booming. Vietnam is a member country of the Association of Southeast Asian Nations (ASEAN) since 1995 and has also been a member state of the World Trade Organization (WTO) since 2007. Vietnam is officially a member of 63 international organizations including the United Nations (since 1977) in 2010[DFDL Mekong Legal and Tax Advisers (2010) Vietnam: Legal and Investment Guide 2010, p. 11]. Furthermore, the Korea‐ASEAN FTA has been effective since 2007. Following Vietnam’s economic booming, the cooperation between Korea and Vietnam has grown significantly. Although the most distinctive cooperation can be found in the trade in goods sector, there are other sectors that have potential for future positive cooperation. For example, the Foreign Direct Investment (FDI) is one of the most efficient and intensive field of the economic cooperation between the two countries considering the FTA relationship. Hwy‐Chang Moon (2005) Economic Cooperation between Vietnam and Korea through Foreign Direct Investment, The Southeast Asian Review 15(2), Korea Association of Southeast Asian Studies, p. 341. The main objective of this paper is to research the legal issues in domestic laws regarding FTAs in Korea and Vietnam. Especially, it will focus on the legal system and the recent legal reforms of Vietnam. As an example, it will analyse the business laws such as the Enterprise Law and the Investment Law. Then, the paper will propose directions for future cooperation between the two countries in the FTA era. This will help to maximize the benefits of the Korea‐ASEAN FTA and to build new strategic partnerships by the possible bilateral FTA between the two countries. This also will help Korea to take a better position than China and Japan in the region, and in a possible talk of the integration of ASEAN+3.