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

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version