HCM City (VNA) – Overcoming tariffbarriers doesn’t mean Vietnamese good and services can easily enter theEuropean Union (EU), but they still have to satisfy strict non-tariffrequirements of what is one of the world’s most demanding markets, according toMinister of Industry and Trade Tran Tuan Anh.

The EU-Vietnam Free Trade Agreement (EVFTA) wassigned in Hanoi on June 30. Once taking effect, it will eliminate 99 percent ofthe import tariff lines between the two sides in 7-10 years. This is thehighest commitment level Vietnam has received among the FTAs it hasinked. 

Notably, many commodities will benefit from the zero-percenttariffs immediately after the deal becomes effective such as coffee,peppercorn, honey and aquatic products.

At a conference in Ho Chi Minh City on August 21, Minister of Agriculture and Rural DevelopmentNguyen Xuan Cuong said agricultural products of Vietnam have been shipped to185 countries and territories, including big markets like the US, Japan, the EUand the Republic of Korea. The EVFTA is hoped to help Vietnam strongly boostthe shift of export to Europe.

Echoing this, Minister Anh said under the pact,Vietnam’s exports to the EU can rise by some 20 percent in 2020, 42.7 percentin 2025 and 44.37 percent in 2030, compared to the pre-EVFTA period. At thesame time, imports from the EU will also increase but at a slower pace.

The EVFTA will help raise the country’s GDP by2.18-3.25 percent by 2023 and 7.07-7.72 percent by 2033 on average.

It will expand the market for Vietnam’s strongproduce like agricultural and aquatic products, facilitating their access tothe market that groups 28 member countries with more than 500 million peopleand reducing its dependence on the Chinese and Southeast Asian markets, henoted.

Pointing out non-tariff challenges, Anh said theEU has many requirements relevant to not only quality but also productionprocess. For example, manufacturers must not use seafood caught illegally orillegal timber. They also have to meet food safety, labour and environmentalstandards which are among the most stringent of their kinds in the world.

To capitalise on benefits generated by theEVFTA, businesses, especially small- and medium-sized ones, should actively acquireinformation to realise opportunities and challenges and take actions to improvetheir products and enhance competitiveness, according to the official.

Talking about ways to make use of the tradedeal, Minister Cuong said his sector will work to step up agriculturalprocessing and the export of vegetables, fruits, aquatic products, timber andwood products. It will facilitate expanding the size and boosting thecompetitiveness of domestic farms, encourage production under value chains, andstrictly control the use of chemicals in agricultural practices.

To promote farm produce’s value, Vietnam needsto attract foreign investment to high technology application and the industriessupporting agricultural production. Helping local firms better competitivenessand develop distribution channels in the domestic market, and preparing traderemedies for Vietnamese farm produce before the EVFTA is enforced are alsomeasures to be taken in the time ahead, he added. -VNA