Business Times highlights new opportunities in EU-Vietnam Trade
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.
According
to the article, the EU is already
Vietnam’s second largest export designation. Vietnamese exports to the
Eurozone have grown consistently in recent years, hitting a total of 42.5
billion 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 having entered into force, 70 percent of Vietnamese exports will now enter the EU’s 26 member states duty free, the article said, adding that the remaining tariff lines’ items will be reduced gradually over seven years.
Many businesses could seek opportunities to diversify or reconfigure their supply chains to deal with current issues, or guard against future risk, according to the article.
As countries around
the world cautiously begin to reopen their economies after COVID-19
lockdowns, more companies will seek to build new resilience into their
supply chain - and Vietnam’s value proposition is further strengthened by
the EVFTA, the article said.
“With Vietnam
being one of the first markets in the region to ease lockdown
restrictions, the country is in a prime position to capture opportunities
from pent-up investment demand and shifting global production trends,” it concluded./.