Illustrative image (Source: VNA) Hanoi (VNA) – The free tradeagreement between Vietnam and the EU (EVFTA) is expected to bring 3.2 billionUSD worth of benefits to Vietnam in 2020, while helping the Southeast Asiannation expand export markets and engage deeper into the global value chain, saidexperts.
Negotiations for the deal have ended aftersix years, opening great chances for Vietnamese firms to penetrate into apromising market with a population of 508 million and total GDP of about 18trillion USD.
Before the FTA was signed, the EU had beenthe third largest trade partner of Vietnam and one of the two leading exportmarkets of the country with two-way trade reaching upwards of 50.4 billion USDin 2017.
With a commitment to cutting down importtaxes by over 99 percent, the deal will bring about great chances forVietnamese firms to strengthen exports, especially in products Vietnam holdsstrengths in, such as garments and textiles, footwear, agro-fishery, and timber.
In particular, products that have neverbeen sold in the EU due to tariff barriers will be able to access the market witha competitive price.
A recent research by international experts hasshown that the FTA will help increase Vietnam’s export revenue by 4-6 percentper year in the 10 years after it takes effect.
For the garment and textiles sector, thedeal may help raise its exports by 1.54 billion USD by 2023 and 5.82 billionUSD by 2028.
According to the Minister of Industry andTrade Tran Tuan Anh, the FTA is a high quality deal, thus the benefits itbrings are high.
Vietnam’s export revenue is expected torise 4-6 percent, while those of the economic sector will increase by 19billion USD in 2019 and 70 billion USD in 2028.
As Vietnam and the EU’s export products andeconomic structures are supplementary without direct competition, the benefitfrom the deal is huge.
Minister Anh also held that there will be competitivepressure, including in processing, automobile manufacturing, informationtechnology, agriculture, and animal breeding.
However, along with the opportunities,Vietnam will also face some challenges from the FTA from 2019 onwards.Enterprises who wish to export goods to the EU will have to show certificatesof origin (C/O) for their products in order to enjoy the Generalised System ofPreferences (GSP).
Tran Thanh Hai, Vice Director of the Departmentof Import-Exports under the Ministry of Industry and Trade, said that theresponsibility to prove the origins of goods will switch from managementagencies to exporters themselves.
This means enterprises will have to processthe procedures themselves, meeting the criteria for origin certificates andbear the responsibility themselves on the accuracy of the documents.
Statistics from the Ministry of Industryand Trade showed that Vietnam already has 2,700 enterprises conducting exportactivities with the EU which are subject to GSP.
Hai asserted that before applying C/O regulationson Vietnamese firms, the EU should grant about six months for the firm to adaptto the new regulations.
The ministry will organise training coursesfor enterprises and grant licences to them to issue C/Os, he added.
On the other hand, the EVFTA will createmotivation and new playgrounds for EU organisations who wish to invest inVietnam, while contributing to the process of building modern marketinstitutions and international economic integration in Vietnam.
Minister Anh stressed the need for Vietnamesefirms to actively exploit benefits from the deal and prepare themselves for itsupcoming impacts. –VNA
Negotiations for the deal have ended aftersix years, opening great chances for Vietnamese firms to penetrate into apromising market with a population of 508 million and total GDP of about 18trillion USD.
Before the FTA was signed, the EU had beenthe third largest trade partner of Vietnam and one of the two leading exportmarkets of the country with two-way trade reaching upwards of 50.4 billion USDin 2017.
With a commitment to cutting down importtaxes by over 99 percent, the deal will bring about great chances forVietnamese firms to strengthen exports, especially in products Vietnam holdsstrengths in, such as garments and textiles, footwear, agro-fishery, and timber.
In particular, products that have neverbeen sold in the EU due to tariff barriers will be able to access the market witha competitive price.
A recent research by international experts hasshown that the FTA will help increase Vietnam’s export revenue by 4-6 percentper year in the 10 years after it takes effect.
For the garment and textiles sector, thedeal may help raise its exports by 1.54 billion USD by 2023 and 5.82 billionUSD by 2028.
According to the Minister of Industry andTrade Tran Tuan Anh, the FTA is a high quality deal, thus the benefits itbrings are high.
Vietnam’s export revenue is expected torise 4-6 percent, while those of the economic sector will increase by 19billion USD in 2019 and 70 billion USD in 2028.
As Vietnam and the EU’s export products andeconomic structures are supplementary without direct competition, the benefitfrom the deal is huge.
Minister Anh also held that there will be competitivepressure, including in processing, automobile manufacturing, informationtechnology, agriculture, and animal breeding.
However, along with the opportunities,Vietnam will also face some challenges from the FTA from 2019 onwards.Enterprises who wish to export goods to the EU will have to show certificatesof origin (C/O) for their products in order to enjoy the Generalised System ofPreferences (GSP).
Tran Thanh Hai, Vice Director of the Departmentof Import-Exports under the Ministry of Industry and Trade, said that theresponsibility to prove the origins of goods will switch from managementagencies to exporters themselves.
This means enterprises will have to processthe procedures themselves, meeting the criteria for origin certificates andbear the responsibility themselves on the accuracy of the documents.
Statistics from the Ministry of Industryand Trade showed that Vietnam already has 2,700 enterprises conducting exportactivities with the EU which are subject to GSP.
Hai asserted that before applying C/O regulationson Vietnamese firms, the EU should grant about six months for the firm to adaptto the new regulations.
The ministry will organise training coursesfor enterprises and grant licences to them to issue C/Os, he added.
On the other hand, the EVFTA will createmotivation and new playgrounds for EU organisations who wish to invest inVietnam, while contributing to the process of building modern marketinstitutions and international economic integration in Vietnam.
Minister Anh stressed the need for Vietnamesefirms to actively exploit benefits from the deal and prepare themselves for itsupcoming impacts. –VNA
VNA
