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Vietnam-EU trade pact under scrutiny

A workshop on evaluating the impacts of the Vietnam-EU free trade agreement took place in southern Dong Nai province on May 28.
A workshop on evaluating the impacts of the Vietnam-EU free tradeagreement took place in southern Dong Nai province on May 28.

The European Trade Policy and Investment Support Project (EU-MUTRAP)and the Dong Nai Department of Trade and Industry jointly organised theevent.

Participating State officials, businessassociations and research institutes discussed the possible effects ofthe pact on local major export commodities, such as agriculturalproduce, footwear and leather, and woodwork products.

According to the Vietnam Association of Leather and Footwear, Vietnam isthe second biggest footwear exporter to the EU, which annually consumessome 2.8 billion pairs.

The removal of tariffs oncethe pact comes into effect will provide a huge potential for Vietnam toenlarge its share in the market, which is expected to double by the timethe agreement is signed.

Vice Chairman of the Vietnam Timber and Forestry Product AssociationNguyen Ton Quyen said local exporters’ proposal asking the EU to holdoff on issuing new policies that could limit the export of Vietnamesewoodwork products, was likely to be rejected.

ClaudioDordi, technical assistance team leader of the EU-MUTRAP, claimed thatthe free trade agreement will enable Vietnam to improve its mechanismsand legal systems for trade and customs as well as lessen tariff andnon-tariff barriers.

The EU is currently Vietnam’ssecond biggest trade partner and the largest export destination formajor trading commodities including footwear, apparel, seafood andagricultural produce.-VNA

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