EVFTA helps Vietnamese businesses expand to other markets

VCN - According to Nguyen Thi Thu Trang, Director of the Center for WTO and Integration, under the Vietnam Chamber of Commerce and Industry (VCCI), with the momentum from the Free Trade Agreement between Vietnam and the European Union (EVFTA), Vietnamese businesses will not only have opportunities in the EU but will also spread to other developed markets.
Ms. Nguyen Thi Thu Trang.
Ms. Nguyen Thi Thu Trang.

How do you assess the awareness and effectiveness of Vietnamese enterprises taking advantage of incentives from the EVFTA?

We have conducted a survey with more than 500 businesses about the results after two years of implementing the EVFTA, and the results are quite positive. Accordingly, in the past two years, Vietnamese enterprises have made good use of the EVFTA, 4 out of 10 enterprises said that they had obtained certain benefits from EVFTA.

The most common are tariff preferences for goods exported to the EU or for goods imported from the EU. Along with that, many businesses said they have enjoyed new opportunities from the EVFTA in linking and creating joint ventures with partners and in getting more orders, more revenue and profits from participating in the supply chain to serve import and export activities for the EU market.

We think that, compared to many other free trade agreements, it is clear that the EVFTA has brought very early and very significant opportunities for businesses. In addition, the EVFTA is not only a common FTA with the whole EU but also opens up opportunities for Vietnam to trade with all 27 EU partners, while we have never had such an FTA before, so these are the brand new benefits. Therefore, the survey of VCCI also shows that, out of 100 enterprises, more than 90 said that they know about EVFTA to different degrees and this rate is the highest among all FTAs ​​we have ever had.

Vietnamese businesses have also begun to pay more attention to and learn about business-related commitments that can be leveraged or can prepare for challenges related to the EVFTA. According to the survey, only 3 out of 10 businesses know to a relative extent about the EVFTA commitments related to them and there is 1 enterprise that knows these commitments well. This shows that businesses have had a cognitive starting point to know about commitments and from there to take appropriate actions.

Regarding taking advantage of tariff incentives for exporting goods to the EU, what should businesses pay attention to when by 2023, there will be no choice between the preferential tariff regime in EVFTA and the Generalized System of Preferences (GSP)?

Before the EVFTA, as a developed region, the EU built a universal preferential tariff regime for goods coming from developing countries, with limited competition. GSP is a unilateral preferential tariff program that the EU gives Vietnam and according to the commitment, this preferential program will end 2 years after the EVFTA comes into effect, that is, it will end at the end of the year.

Before the end, Vietnamese businesses have many incentives when they can choose one of two forms of tax incentives in the GSP and EVFTA, which one is more convenient to use.

According to the data published by the Ministry of Industry and Trade, the rate of taking advantage of GSP incentives is approximately 20% - a very high level compared to other agreements. Obviously, this is a stepping stone for businesses to familiarize themselves with the tax incentives in the EVFTA when GSP ends. In addition, an advantage is that although there are some differences, the incentives of GSP and EVFTA are not too different. Moreover, if the tax reduction schedule in the EVFTA is not as good as the GSP, in the commitment we have achieved the stipulation: if the previous tax rate is lower, the enterprise will still be entitled to under the GSP but the procedures and conditions on rules of origin must comply with the provisions of the EVFTA.

If businesses have the same initiative as they have been in the past 2 years in understanding the EVFTA, we have reason to believe that there will be a rather favorable transition from using GSP or EVFTA options to using only EVFTA.

In order to continue to take advantage of opportunities from the EVFTA, what do you think Vietnamese businesses need to do?

In the context that the world economy is still facing many difficulties and fluctuations, we must take advantage of opportunities from the EVFTA in particular and FTAs ​​in general to promote trade, import and export. However, businesses also need to change to be suitable and ready for the new requirements of the EU market.

Currently, we have a near-unique advantage in some products as not many of our competitors have trade agreements with the EU, but the situation may change in the near future as the EU continues to integrate with other partners, some of which may be competitors. Therefore, exporters need to pay attention to these issues.

In addition, businesses need to have a change in competitiveness based on quality, brand, design and other factors in which we have an advantage thanks to the EVFTA.

If businesses do well, it will create momentum for long-term development, keep the market stable, and at the same time, businesses that meet the requirements of the EU market will also be able to meet the requirements of nearly all other development partners. This will be an opportunity not only in this market but spread to other markets.

By Binh Nam/ Huu Tuc

Related News

Challenges facing customs revenue collection in 2025

Challenges facing customs revenue collection in 2025

VCN - Revenue from import-export activities is expected to face significant challenges in 2025, necessitating coordinated and decisive measures to ensure accurate and sufficient tax collection, preventing revenue losses, and achieving assigned targets.
Sustainable opportunities for Vietnamese goods to penetrate the global market

Sustainable opportunities for Vietnamese goods to penetrate the global market

VCN - The EU market is increasingly setting stronger green standards for imported goods. This not only creates great challenges but also opens up new opportunities for Vietnamese businesses if they know how to transform. So what should businesses do to adapt and take advantage of this opportunity? Vice President of the European Chamber of Commerce in Vietnam (EuroCham) Nguyen Hai Minh (photo) said that to take advantage of this opportunity, businesses need to constantly innovate, update information, improve green production capacity and closely coordinate with management agencies as well as international partners.
Hong Kong: A gateway for Vietnamese businesses to access the Greater Bay Area market

Hong Kong: A gateway for Vietnamese businesses to access the Greater Bay Area market

VCN - According to the General Department of Customs, Vietnam-China trade is expected to reach a new record of approximately US$200 billion in 2024. This milestone marks a record in bilateral trade that Vietnam has achieved with a partner.
“Give and Take” in the Value Chain of the CPTPP Market

“Give and Take” in the Value Chain of the CPTPP Market

VCN - Vietnamese businesses have many opportunities and advantages if they take advantage of resources from imports and technology transfers when joining the supply chains of FDI companies within the CPTPP.

Latest News

Sustainable fashion presents promising niche market for textile manufacturers

Sustainable fashion presents promising niche market for textile manufacturers

The combination of sustainability and culture will open up more opportunities for Vietnamese textile enterprises to strengthen their position in the global market and capture the promising Nordic fashion market.
VN

VN's car industry to diversify supply chain

While China remains a significant supplier, recent trade data highlights Việt Nam’s efforts to diversify supply to meet industry demands.
Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Việt Nam’s export value of agro-forestry-aquatic products was estimated at US$5.08 billion in January, marking a 4.9 per cent decline compared to the same period last year.
Thailand reviews anti-dumping tax on Vietnamese steel

Thailand reviews anti-dumping tax on Vietnamese steel

TRAV recommended that the Việt Nam Steel Association (VSA) notify relevant local manufacturers and exporters to answer the investigation questionnaire within the prescribed deadline.

More News

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

VCN - Total import-export turnover in the first half of January 2025 reached more than US$34 billion, the trade balance had a deficit of nearly US$2 billion.
Pangasius fetch record price in early 2025

Pangasius fetch record price in early 2025

Currently, larger pangasius weighing over 1.2kg, are selling at VNĐ32,440 (US$1.29) per kilogram, a record high not seen since 2022.
Việt Nam and India trade reached $15 billion in 2024

Việt Nam and India trade reached $15 billion in 2024

Trade relations between Việt Nam and India continue to flourish, with bilateral trade turnover reaching around US$15 billion in 2024.
Việt Nam

Việt Nam's port firms thrive in 2024

Strategic investments and expansions are expected to further enhance the sector’s performance.
Software exporter looks to new pace of growth

Software exporter looks to new pace of growth

FPT Software (F-Soft) Đà Nẵng plans to earn VNĐ3.6 trillion (US$144 million) in exports in 2025 after introducing a third campus at the FPT Complex and signing a strategic deal with the city.
Việt Nam

Việt Nam's exports to EU see impressive recovery in 2024

Việt Nam’s exports to the EU made an impressive recovery in 2024, reaching nearly US$51.7 billion, an increase of $8.08 billion compared to 2023.
Việt Nam–CPTPP trade turnover exceeds $100 billion

Việt Nam–CPTPP trade turnover exceeds $100 billion

The turnover accounts for 13.1 per cent of Việt Nam’s total import-export turnover last year.
E-commerce, a game changer for textile manufacturers

E-commerce, a game changer for textile manufacturers

According to a Việt Nam Textile and Apparel Association (VITAS) report, the proportion of textile businesses adopting e-commerce strategies has increased from 7-8 per cent in 2021, to over 20 per cent by the end of last year.
China remains the largest market for Việt Nam’s cassava and cassava products

China remains the largest market for Việt Nam’s cassava and cassava products

China accounted for 92.85 per cent of the total export volume and 91.77 per cent of the total export value, amounting to 2.43 million tonnes worth $1.06 billion.
Read More

Your care

Latest Most read
Sustainable fashion presents promising niche market for textile manufacturers

Sustainable fashion presents promising niche market for textile manufacturers

The combination of sustainability and culture will open up more opportunities for Vietnamese textile enterprises to strengthen their position in the global market and capture the promising Nordic fashion market.
VN

VN's car industry to diversify supply chain

While China remains a significant supplier, recent trade data highlights Việt Nam’s efforts to diversify supply to meet industry demands.
Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Việt Nam’s export value of agro-forestry-aquatic products was estimated at US$5.08 billion in January, marking a 4.9 per cent decline compared to the same period last year.
Thailand reviews anti-dumping tax on Vietnamese steel

Thailand reviews anti-dumping tax on Vietnamese steel

TRAV recommended that the Việt Nam Steel Association (VSA) notify relevant local manufacturers and exporters to answer the investigation questionnaire within the prescribed deadline.
In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

VCN - Total import-export turnover in the first half of January 2025 reached more than US$34 billion, the trade balance had a deficit of nearly US$2 billion.
Mobile Version