Fully make use of tax incentives from EVFTA, promote exports to high-end markets

	EVFTA helps increase exports, investment opportunities: experts
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	Vietnam gains stronger foothold in EU market two years after EVFTA takes effect

Processing shrimp for export at Minh Phu Seafood Corporation Joint Stock Company. Photo: Internet

Seafood businesses have increased the use of preferential certificates of origin under the agreement, boosting exports to this high-end market.

Take advantage of incentives from EVFTA

According to the General Department of Customs, in the first half of this year, Vietnam’s export turnover to the European market (EU) maintained an increase of 15.2% over the same period last year, reaching US$28.61 billion.

In the opposite direction, Vietnam's imports from this region reached US$10.46 billion, down 3%.

Since the EVFTA took effect, Vietnam's seafood exports to the EU have been changing as Vietnamese businesses actively promote the export of seafood products that are eligible for tax incentives from the EVFTA. Meanwhile, the partner also prioritizes seafood products from Vietnam thanks to the more competitive price.

Mr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, said Vietnamese businesses have been flexible and responsive in access to markets, taking advantage of the EVFTA. This agreement has the biggest catalytic effect, and increasing export sales of Vietnam, creating a new growth engine for Vietnam's seafood products with trade advantages and tax incentives. The agency opens up many opportunities to promote exports for a series of billion-dollar export items of Vietnam into potential markets.

According to the Vietnam Association of Seafood Exporters and Producers, there is more demand in the EU market after the Covid-19 pandemic along with high food inflation, so despite difficulties such as soaring sea freight rates, high container costs, Vietnamese enterprises take advantage of promoting seafood exports to this market. In particular, in the context of high inflation, the EVFTA is an even more favorable factor to help exports to the EU prosper. As a result, Vietnam's seafood exports to the EU in the first 6 months of 2022 reached US$688 million, up 41% over the same period in 2021.

Ms. Le Hang, Deputy Director of VASEP.PRO Center, said shrimp still accounts for the highest proportion in the structure of products exported to the EU, accounting for 54% with US$303 million, up 51% year on year.

The sharp increase in seafood demand in Europe facilitates Vietnam's seafood exports at a reasonable price and Vietnamese enterprises can even make a real bargain. Export turnover to the EU market accounted for 11.8% of the total seafood export turnover of the country.

In which, the largest export markets in the EU are the Netherlands, Germany, Italy, Belgium and France. This is a relatively positive result, especially amid the Covid-19 pandemic, freight rates increased to a record high while exporting Vietnamese seafood to the EU has not removed the IUU yellow card yet.

According to the Vietnam Association of Seafood Exporters and Producers, demand in the EU recovered after the Covid-19 pandemic, high food inflation, so despite difficulties such as soaring sea freight rates, and high container costs, Vietnamese enterprises take advantage of promoting exports to this market.

Improve competitiveness

According to experts, entering the big playing field also means that Vietnamese goods must accept new difficulties and challenges. In the long term, in order to develop sustainably in this "commercial playground", enterprises need to make efforts to improve their competitiveness and product quality and have a transparent and scientific traceability system to meet requirements of the certification of origin.

In order to take advantage of the opportunities brought by the EVFTA, Ms. Bui Hoang Yen, Deputy Head of the Southern Working Group - Trade Promotion Department (Ministry of Industry and Trade) said that businesses need to step up the following activities.

Firstly, businesses need to actively learn information about the EVFTA to understand Vietnam's commitments and the EU's commitments, especially information about the tax incentives passed under this agreement for Vietnamese key products that have a lot of export potential in the near future.

Secondly, the preparation should be carried out comprehensively from studying the opportunities and challenges of the EU market to solutions such as improving product quality and design; promoting competitive advantages, and increasing efficiency.

It should be noted that in order to take advantage of incentives from the agreement, enterprises need to ensure that their products meet the requirements of rules of origin and technical standards of the EU.

Thirdly, businesses also need to refresh their business thinking in the new context, taking competitive pressure as the driving force for innovation and development. Those who proactively respond to changes in the business environment brought about by the process of international economic integration surely benefit from the EVFTA.

Therefore, enterprises must actively develop and adjust business plans for the current, medium and long term to promote the flow of goods into the EU market.