Processing tra fish for export (Photo: VNA)
Hanoi (VNA) – The Business Times on August 11 posted a story describing the EU-Vietnam Free Trade Agreement(EVFTA) as a significant economic milestone for Vietnam.
Accordingto the article, the EU is alreadyVietnam’s second largest export designation. Vietnamese exports to theEurozone have grown consistently in recent years, hitting a total of 42.5billion USD in 2018, representing a year-on-year growth rate of 11 percent.They comprise mainly telecommunications equipment, electronics, footwear,textiles, and food products like coffee, rice and seafood.
With the EVFTA havingentered into force, 70 percent of Vietnamese exports will now enter the EU’s 26member states duty free, the article said, adding that the remaining tariff lines’ items will bereduced gradually over seven years.
Many businesses couldseek opportunities to diversify or reconfigure their supply chains to dealwith current issues, or guard against future risk, according to thearticle.
As countries aroundthe world cautiously begin to reopen their economies after COVID-19lockdowns, more companies will seek to build new resilience into theirsupply chain - and Vietnam’s value proposition is further strengthened bythe EVFTA, the article said.
“With Vietnambeing one of the first markets in the region to ease lockdownrestrictions, the country is in a prime position to capture opportunitiesfrom pent-up investment demand and shifting global production trends,” it concluded./.
