EVFTA opens up market opportunities for SMEs

After the EU-Vietnam Free Trade Agreement was put into place one year ago, Vietnamese businesses have begun to optimise opportunities brought by the deal.

EVFTA opens up market opportunities for SMEs hinh anh 1

Many Vietnamese sectors have brought into play advantages of the EVFTA. (Photo: VNA)

The EU-Vietnam Free Trade Agreement (EVFTA) has positively impacted trade activities between the two sides.

According to the Ministry of Industry and Trade (MoIT), since the agreement took effect on August 1, 2020, trade between Vietnam and the EU has grown more than 18 percent despite COVID-19.

Luong Hoang Thai, head of the MoIT’s Multilateral Trade Policy Department, said the deal has initially met the expectations of both sides.

Vietnam’s exports to the EU in the first half of this year increased 18.6 percent year-on-year, and the country ran a trade surplus of over 11 billion USD with the market.

It is noteworthy that during negotiations, Vietnam is interested in market opportunities for small-and medium-sized enterprises (SMEs) that would face difficulties in accessing the market, he said.

Vietnam also expected to access technology intensive and quality products to better serve the demand of Vietnamese people.

Meanwhile, the EU’s exports to Vietnam during the reviewed period expanded by 18 percent, with major products like chemicals, pharmaceutical products, auto and auto spare parts shipped to the Southeast Asian nation.

He cited the Vietnamese Minister of Industry and Trade and the EU Trade Commissioner as saying that both sides have relatively implemented successfully the agreement.

Thai said in the face of COVID-19, the two sides have resorted to online trade activities, which have partially satisfied their expectations. He also noted that the initial results have created a good foundation for them to promote initiatives in the time ahead.

Apart from market opportunities in both short and long terms, the EVFTA also targets market-oriented institutional reforms, according to the official.

He cited standards imposed by the EU on the auto industry as an example, saying the standards are similar to those introduced by the United Nations (UN) and Vietnam have shifted towards them.

The move has not only realised the Government’s determination of not trading environmental and social values for economic benefits, but also pushed ahead with sustainable development.

Once Vietnam follows the standards, the country’s goods can be exported to other markets, he added.

Along with trade, the two sides have also paid heed to the medical sector, he said, stressing the EU Trade Commissioner who is also the European Commission Executive Vice President has pledged to support Vietnam in this sphere, especially in the context of the COVID-19 spread.

The MoIT said under the deal, Vietnam eliminated import duties on 48.5 percent of the tariff lines, equivalent to 64.5 percent of the EU’s exports to the country, as soon as the agreement took effect.

After that, 91.8 percent of the tariff lines, equivalent to 97.1 percent of the bloc’s exports, will have their import duties removed in seven years.

For the remaining 1.7 percent of the tariff lines, Vietnam will gradually lift duties in more than 10 years or apply the tariff-rate quota regime under the World Trade Organisation (WTO) commitments.

At present, agricultural and aquatic products, consumer goods, processed food, milk, and dairy products from the EU have yet to benefit from zero-percent tariffs in Vietnam. As livestock products hailing from the EU are still subject to the tax rate ranging 10 percent - 40 percent, imports of these commodities have grown but not at a fast pace.

However, import duties on the EU’s frozen pork, other types of pork, and chicken will be slashed to zero percent in seven, nine, and 10 years, respectively, since the EVFTA enforcement. Beef will enjoy this tax rate, from 20 - 30 percent at present, in the next three years.

Vietnam currently ranks 17th among trading partners of and 11th among exporters to the EU./.

Source: VNA
en.vietnamplus.vn

Related News

Revising policies to adapt to two-way impact of FTAs

Revising policies to adapt to two-way impact of FTAs

VCN - One of the most obvious positive impacts of Free Trade Agreements (FTAs) is to promote export growth, thereby contributing to increasing state budget revenue. However, the implementation of FTAs ​​also has a negative impact on state budget revenue under commitments on tariff reduction and elimination.
EVFTA strengthens Vietnam

EVFTA strengthens Vietnam's attractiveness to European investors

VCN - The Vietnam - EU Free Trade Agreement (EVFTA) has been in effect for four years (August 1, 2020). However, the level of benefits received from this new generation FTA is divided and different among businesses.
EVFTA boosts Vietnam’s exports to Europe

EVFTA boosts Vietnam’s exports to Europe

VCN - The EVFTA has strengthened Vietnam’s attractiveness to European investors, and has significantly boosted Vietnam’s exports to Europe.
Taking advantage of EVFTA: "It

Taking advantage of EVFTA: "It's impossible for everyone's house to shine brightly"

VCN - According to experts, the trend of the EU market is to increase technical barriers when reducing tariff barriers. It can be easily seen that as soon as the EVFTA took effect, the EU made many announcements related to rules for facilities raising and transporting aquatic animals, or increasing regulations on requirements for animal health...

Latest News

Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.

More News

Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Rice export prices drop, but decline expected to be short-term

Rice export prices drop, but decline expected to be short-term

Việt Nam’s rice export prices have declined, reaching their lowest level in three years.
Key agro products expected to maintain export growth this year

Key agro products expected to maintain export growth this year

At present, agricultural exports, such as rice, coffee and seafood, have steadily secured a stable place in major global markets.
EU issues 12 warnings against Việt Nam’s food and agricultural exports

EU issues 12 warnings against Việt Nam’s food and agricultural exports

The Việt Nam SPS Office has reported that some Vietnamese export products failed to meet the EU’s stringent standards.
Việt Nam to impose VAT on low-value express-imported goods

Việt Nam to impose VAT on low-value express-imported goods

Việt Nam will end a previous policy that exempted imported goods valued under VNĐ1 million (US$39.4) from taxes when shipped via express delivery.
Exchange rate risks need attention in near future

Exchange rate risks need attention in near future

VCN - Exchange rate developments in 2025 are considered to be quite complicated due to US policies related to trade and investment.
Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

VCN - Data from the General Department of Vietnam Customs indicates a softening of both exports and imports in January 2025, relative to the same month in 2024.
Import and export turnover reaches about US$29 billion in the second half of January 2025

Import and export turnover reaches about US$29 billion in the second half of January 2025

VCN - Vietnam's total import and export turnover in the second half of January 2025 (January 16-31, 2025) reached US$28.9 billion, the latest preliminary statistics of the General Department of Vietnam Customs reported.
Market edges up slightly as liquidity remains low

Market edges up slightly as liquidity remains low

Market breadth remained positive, with 161 gainers outnumbering 144 decliners.
Read More

Your care

Latest Most read
Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.
Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Mobile Version