91% of Gyeonggi Province SMEs “satisfied with FTA support”
Createdd 2016-12-26 Hit 504
Contents
Gyeonggi Province announced results of satisfaction survey of 499 SMEs
regarding FTA Center support services and FTA usage status for second half of
2016
Of all companies utilizing Gyeonggi
FTA Center’s support services, 91% indicated high satisfaction rates. ⓒ Gyeonggi G-News
Of all companies utilizing Gyeonggi FTA Center’s support services, 91% indicated
high satisfaction rates.
Supported
by the Gyeonggi Provincial Government and the Ministry of Trade, Industry &
Energy and managed by the Gyeonggi Federation of Economic Organizations, the Gyeonggi
FTA Support Center (Gyeonggi FTA Center) announced the survey results regarding
‘satisfaction
levels for Gyeonggi FTA Center support services and FTA usage status for the
second half of 2016’ on December 19.
The
survey was conducted between November 7 and December 9 via fax, email, landlines,
and survey forms distributed in the field.
The
survey covered 499 companies utilizing Gyeonggi FTA Center’s support services; 91%
responded that they were ‘satisfied’ (48% ‘very satisfied’ and 43% ‘satisfied’) with the support services provided. The survey results indicated
that SMEs in Gyeonggi Province were highly satisfied with services extended to
help companies address FTAs.
Gyeonggi
Province International Trade Division Director Lee So-chun said, “We believe that satisfaction
among companies went up in 2016 thanks to our support of companies exporting
into China through the Korea-China FTA. In 2017, we will support companies to ensure
they do not experience any problems in terms of exports to the US and that
follow-up services are not affected by the new American administration.”
Breaking
down satisfaction levels further, the project with the highest utilization rate
was ‘localized
FTA education’ at 52%, followed by 1:1 FTA consulting sessions via corporate site visits
(21%), advanced confirmation of product origins (14%), and 1:1 FTA briefing
sessions via corporate site visits (7%).
The
project with the highest satisfaction rate among all Gyeonggi FTA Center
support service was the circuit tour of overseas marketing briefing sessions (71%
‘very
satisfied’ and 29% ‘satisfied’), followed by advanced confirmation of product origins (55% ‘very satisfied’ and 35% ‘satisfied’), 1:1 FTA consulting
sessions via corporate site visits (46% ‘very satisfied’ and 42% ‘satisfied’). Results showed that
companies were highly satisfied with overseas marketing briefing sessions
focusing on China after the ratification of the Korea-China FTA this year.
As
for projects in which companies wanted to participate, the circuit tour of FTA
practical training (21%) was followed by the international certification
package support service (19%), the overseas marketing support service (18%),
and 1:1 consulting sessions on corporate site visits (16%).
Among
all respondents, the largest number of companies working with the Korea-China
FTA (23.7%) followed by FTAs with the EU (14%), ASEAN (13.4%), the US (10%),
Vietnam (8%), and India (6.7%). These results indicate that companies were
utilizing the FTA with China, the top trading partner for Korea, and that the
Korea-Vietnam FTA was relatively popular thanks to lower tariff rates which
were reduced twice within the year since the agreement was ratified.
In
terms of the FTAs most anticipated by companies, the Korea-China-Japan FTA led
the way (17%) followed by the Korea-Russia FTA (14%), the Korea-Israel FTA
(12%), the Korea-Mexico FTA (11%), and the Korea-Japan FTA (7%).
Meanwhile,
according to the usage status of FTAs, 11% of all companies responded that FTAs
resulted in increased corporate sales, while 86% said sales remained on par
with the previous year. Factors that boosted sales included increases in direct
exports via FTAs (36%) followed by increased brand and product awareness (33%),
and increased demand from clients thanks to FTAs (22%). This indicated that
FTAs are playing a critical role in the sales and exports of SMEs.
For
difficulties with FTAs, the leading response at 25% was that procedures to
benefit from special tariffs under FTAs were complicated. This was followed by
difficulties in securing documentation to prove product origin (24%) and lack
of knowledgeable staff in FTA affairs (18%), which confirmed suspicions that
pressure is mounting on companies through added FTA responsibilities as
additional new agreements are signed.
Kim
Jin-kyoung jinkyoungkim@kg21.net
