Vietnamese leather and footwear exporters must comply with the EU-Vietnam free trade agreement’s rules of origin and be prepared to deal with EU barriers and anti-dumping measures (Photo: VNA) HCM City (VNA) - Vietnamese leather and footwear exporters mustcomply with the EU-Vietnam free trade agreement’s rules of origin and beprepared to deal with EU barriers and anti-dumping measures, speakers said at aseminar held in Ho Chi Minh City on November 17.
The meeting, organised by the Ministry of Industry and Trade and the EuropeanTrade Policy and Investment Support Project (EU-Mutrap), was held to helpexporters take advantage of the EV-FTA when it takes effect in 2019.
Phan Thi Thanh Xuan, vice chairwoman and general secretary of the VietnamLeather, Footwear and Handbag Association (Lefaso), said the EV-FTA wouldincrease exports because of lower tariffs and contribute to eliminating othertrade barriers.
However, Vietnamese leather and footwear manufacturers and exporters willconfront challenges as well. To meet EU requirements, Vietnamese businesseswill have to improve technologies and manufacturing processes to ensure highquality.
Because most leather and footwear manufacturers in the country areforeign-invested, locally-owned enterprises will have to enhancecompetitiveness to increase market share.
Vuong Duc Anh, deputy head of the origin of goods division under the Ministryof Industry and Trade’s Export-Import Department, said that exporters shouldcomply with EV-FTA’s rules of origin in order to make the most of EV-FTA.
“Exporters will not be able to enjoy tariff cuts to zero percent unless theymeet EV-FTA’s rules of origin,” Anh said.
Professor Sanggeeta Khorana, an expert from EU-Mutrap, said Vietnamesebusinesses subjected to EU barriers and anti-dumping measures should beable to prove that they do not receive subsidies.
An anti-dumping investigation can be initiated whenever the Directorate Generalfor Trade of the European Commission decides that information is sufficient tolaunch an official investigation.
Vietnam earned 13.1 billion USD from leather and footwear exports in the firstnine months of the year, an increase of 11.4 percent over the same period lastyear.
Last year Vietnam ranked as the third-largest footwear manufacturer in theworld, after China and India, according to Lefaso.
The EV-FTA will come into force in 2019, connecting Vietnam - one of ASEAN’smost dynamic manufacturing hubs with the EU – one of the world biggest marketswith GDP of over 18 trillion USD, accounting for 22 percent of the world’stotal GDP and a population of over 500 million.
Once the EV-FTA agreement goes into effect, the EU will eliminate import dutieson 85.6 percent of its tariffs lines on Vietnamese products. After seven years,99 percent of EU tariffs will be removed for Vietnamese products.
Vietnamese textiles, footwear and seafood products (except for canned tuna andfish balls) will incur no import duties within seven years after the agreementtakes effect.
As of the end of last year, Vietnam’s leather and footwear exports to the EUreached nearly 5 billion USD, making the EU the second-largest leather andfootwear importer of Vietnam after the US.
This comes two years after Vietnam enjoyed the EU’s generalised system ofpreferences (GSP) with tariffs reduced from 13-14 percent to 3-4 percent.
In recent years, Vietnam has become one of the most active players innegotiating and implementing free trade agreements.
The EU is Vietnam’s second-biggest export market, while Vietnam is the EU’s11th biggest source of imports.
About 900 European enterprises have invested in Vietnam, which has the largestEuropean business community in Southeast Asia.-VNA
VNA
