Korea and Vietnam are expected to announce start of the negotiations for a bilateral free trade agreement next week in Hanoi, according to government sources.

Trade Minister Bark Tae-ho plans to visit Hanoi to announce the beginning of FTA talks with his Vietnamese counterpart on July 13, the sources said.

The Southeast Asian country’s rice, tropical fruits and fisheries are likely to be the most contentious issues in the FTA talks.

Vietnam, which is the world’s largest exporter of rice along with Thailand, exported rice to Korea twice in 1999 and last year under a minimum market access system.

Hanoi is expected to push for an increase in exports of tropical fruits such as mango and eased quarantine. Vietnam saw $8.47 billion in trade deficit with Korea last year.

Trade volume between Korea and Vietnam has been rising rapidly, hitting $18.63 billion last year, up $5 billion from the previous year.

Seoul’s Trade Ministry said in a statement on Monday that the two sides have not yet officially agreed on when to start the talks.

“The two countries’ trade ministers will hold a meeting in July to discuss bilateral economic and trade issues including the FTA negotiations,” the ministry said.

By Kim So-hyun (sophie@heraldcorp.com)