Does EVFTA help increase 146,000 jobs per year?

illustration image. Source: internet

Accordingly, the EVFTA is expected to help increase about 146,000 jobs per year, focusing on labour-intensive industries and high export speed to the EU.

The expected increases in employment in some sectors are as follows: Textile and apparel increase by 71,300 (in 2025) and 72,600 (in 2030); the corresponding increase compared to 2018 was 2.3% and 2.4% and the leather and footwear industry is forcast to be 4.3% and 3.8% in 2025 and 2030. Other industries will also have a high number of jobs; including air transport (1.5% in 2025) and water transport (0.9% in 2025).

Besides that, the Ministry of Industry and Trade assessed that the EVFTA would not only bring benefits to number of jobs but also has the potential to increase workers' wages through efficient market operations and effects on salaries from FDI enterprises.

According to calculations, the salary of workers at FDI enterprises would be approximately higher by 1% than domestic enterprises.

Besides that, because the economies of the EU are developed at a higher level than Vietnam and are complementary to the Vietnamese economy, imports from EU countries are largely in indirect competition, so with a reasonable tax reduction roadmap, combined with completing the social security system, Vietnam could handle the social problems that arise via participating in the EVFTA.

From an enterprise perspective, the Ministry of Industry and Trade said the EVFTA would open a new opportunity for trade and investment for Vietnamese businesses if they prepared well and were ready to take the lead and make use of the benefit brought by the agreement.

To make good use of the opportunities of the EU market, first and foremost, businesses need to seek information about the EVFTA to grasp Vietnam's commitments and the EU's commitments, especially information on the preferential tariffs under this agreement for Vietnam's goods with a strong position or with potential for export in the future.

"The preparation should be carried out comprehensively from the research of opportunities and challenges of the EU market to solutions such as improving the quality and design of products; promoting competitive advantages, increasing efficiency.It should be noted that to take advantage of the agreement, businesses need to ensure their products meet the requirements of rules of origin and technical standards of the EU,” the Ministry of Industry and Trade stated.