Deputy Head of the European Market Department under the Ministry ofIndustry and Trade Duong Hoang Minh said that exports to the Europeanmarket would recover rapidly after three free trade agreements (FTAs)between Vietnam and Europe are concluded this year, the Vietnam EconomicNews reported on April 14.
Statistics from the Ministry ofIndustry and Trade showed that exports to Europe reached 6.06 billionUSD in the first quarter of this year, an only 7.1 percent increase froma year ago, compared with 28.5 percent for Vietnamese exports toOceania, 25.3 percent to America, 21.6 percent to Africa and 12.4percent to the rest of Asia.
Duong Hoang Minh said slow economicrecovery in Europe resulted in low demand for imported goods. Inaddition, political changes in the Ukraine and Russia also affectedexports to these countries. For these reasons, exports to many Europeanmarkets fell against the same period last year. Specifically, exports tothe Ukraine reached 57 million USD in the first quarter of this year, a4.7 percent drop from a year ago, the UK 851 million USD, a 6.8 percentdrop, and Germany 1.16 billion USD, a 3.7 percent drop.
He alsosaid that exports to Europe would increase by only 10 percent this year.However, the Ministry of Industry and Trade is negotiating threeimportant FTAs with Europe including Vietnam-EU FTA, Vietnam-CustomsUnion of Russia, Belarus and Kazakhstan, and Vietnam-EFTA (Norway,Iceland, Liechtenstein, Norway and Switzerland) FTA. The FTAs areexpected to boost bilateral trade between Vietnam and Europeancountries.
Specifically, after the FTA with the Customs Union ofRussia, Belarus and Kazakhstan is concluded with export tax preferences,Vietnamese exports to Russia would probably increase by 63 percent,Belarus up by 41 percent and Kazakhstan up by 8 percent. Similarly,Russian exports to Vietnam would likely increase by 75 percent,Belarusian exports up by 83 percent, and Kazakhstani exports up by 83percent. The fifth round of negotiations on this FTA was completed onApril 5 and final FTA negotiations are scheduled for completion by theend of the year.
Similarly, Vietnam would significantly increaseits consumer goods, agricultural products and food exports to the EFTA.So far Vietnam-EFTA FTA negotiations have not yet been completed.However, according to previous FTAs between the EFTA and othercountries, the EFTA committed to reducing all tariff lines on industrialand manufactured products to zero percent. In this light, after the FTAbetween Vietnam and the EFTA is concluded, Vietnamese exports to thismarket would pay fewer taxes, have easier access to the EFTA countriesand improve their competitiveness.
In addition, with thepresence of global leading groups in Vietnam, the country is expected tobecome an important overseas investment destination for EFTA investors.The eighth negotiation round on the Vietnam-EFTA FTA is scheduled totake place this April in Switzerland and be completed this year.
Afterthe Vietnam-EU FTA takes effect, more than 90 percent of Vietnameseexports to the EU would pay zero percent taxes. Trade between Vietnamand the EU would increase by 30-40 percent, while a variety of tariffbarriers would be removed. The sixth round of FTA negotiations wascompleted early this year and the FTA would be concluded this comingSeptember.
Duong Hoang Minh said that in the short run theMinistry of Industry and Trade would get together with local departmentsof industry and trade to speak about advantages and disadvantages forexports to Europe in order for businesses to make the most of theconcluded FTAs which are expected to motivate trade between Vietnam andEuropean countries this year and in the future.-VNA
Statistics from the Ministry ofIndustry and Trade showed that exports to Europe reached 6.06 billionUSD in the first quarter of this year, an only 7.1 percent increase froma year ago, compared with 28.5 percent for Vietnamese exports toOceania, 25.3 percent to America, 21.6 percent to Africa and 12.4percent to the rest of Asia.
Duong Hoang Minh said slow economicrecovery in Europe resulted in low demand for imported goods. Inaddition, political changes in the Ukraine and Russia also affectedexports to these countries. For these reasons, exports to many Europeanmarkets fell against the same period last year. Specifically, exports tothe Ukraine reached 57 million USD in the first quarter of this year, a4.7 percent drop from a year ago, the UK 851 million USD, a 6.8 percentdrop, and Germany 1.16 billion USD, a 3.7 percent drop.
He alsosaid that exports to Europe would increase by only 10 percent this year.However, the Ministry of Industry and Trade is negotiating threeimportant FTAs with Europe including Vietnam-EU FTA, Vietnam-CustomsUnion of Russia, Belarus and Kazakhstan, and Vietnam-EFTA (Norway,Iceland, Liechtenstein, Norway and Switzerland) FTA. The FTAs areexpected to boost bilateral trade between Vietnam and Europeancountries.
Specifically, after the FTA with the Customs Union ofRussia, Belarus and Kazakhstan is concluded with export tax preferences,Vietnamese exports to Russia would probably increase by 63 percent,Belarus up by 41 percent and Kazakhstan up by 8 percent. Similarly,Russian exports to Vietnam would likely increase by 75 percent,Belarusian exports up by 83 percent, and Kazakhstani exports up by 83percent. The fifth round of negotiations on this FTA was completed onApril 5 and final FTA negotiations are scheduled for completion by theend of the year.
Similarly, Vietnam would significantly increaseits consumer goods, agricultural products and food exports to the EFTA.So far Vietnam-EFTA FTA negotiations have not yet been completed.However, according to previous FTAs between the EFTA and othercountries, the EFTA committed to reducing all tariff lines on industrialand manufactured products to zero percent. In this light, after the FTAbetween Vietnam and the EFTA is concluded, Vietnamese exports to thismarket would pay fewer taxes, have easier access to the EFTA countriesand improve their competitiveness.
In addition, with thepresence of global leading groups in Vietnam, the country is expected tobecome an important overseas investment destination for EFTA investors.The eighth negotiation round on the Vietnam-EFTA FTA is scheduled totake place this April in Switzerland and be completed this year.
Afterthe Vietnam-EU FTA takes effect, more than 90 percent of Vietnameseexports to the EU would pay zero percent taxes. Trade between Vietnamand the EU would increase by 30-40 percent, while a variety of tariffbarriers would be removed. The sixth round of FTA negotiations wascompleted early this year and the FTA would be concluded this comingSeptember.
Duong Hoang Minh said that in the short run theMinistry of Industry and Trade would get together with local departmentsof industry and trade to speak about advantages and disadvantages forexports to Europe in order for businesses to make the most of theconcluded FTAs which are expected to motivate trade between Vietnam andEuropean countries this year and in the future.-VNA
