South Korean entrepreneurs have been pressing for improved banking arrangements between Vietnam and South Korea with the aim of providing traders with better access to letters of credit (L/Cs).

The entrepreneurs say the problem of obtaining L/Cs is just one barrier to trade between the two nations.

Trade barriers

Complaints about difficulties over L/Cs emerged during a recent meeting between South Korean business representatives and the Vietnamese authorities in Hanoi.

A range of problems associated with customs and tax arrangements were also aired. Some delegates complained about the burdensome bureaucracy related to import and export procedures.

Faster imports

One South Korean importer argued that easily obtainable L/Cs would greatly help speed-up the import process.

But a representative from Vietnam's ministry of finance said it would take time to introduce such a measure because it would require the co-ordination of banking systems in both countries.

Vietnam would nevertheless take time to study the feasibility of such a process, he added.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.