Workers process pineapple for export at a factory in An Giang province (Photo: VNA) The EVFTA, which took effect onAugust 1 last year, has given an impulse to bilateral exportation andimportation, with Vietnam currently recording trade surplus with the EU.
In the first half of 2021, thecountry’s exports to the EU stood at 19.3 billion USD while imports from thisbloc grew 17.2 percent from a year earlier to 8.14 billion USD. The importturnover was 14.65 billion USD in 2020, up 4.3 percent year on year.
The largest EU exporters toVietnam consist of Germany, Italy, France, the Netherlands, Spain, Belgium,Sweden, and Ireland, which accounted for 85 percent of the country’s totalimports from the EU last year.
Computers, electronicproducts and components; machinery, equipment, tools, and spare parts; alongwith pharmaceutical products are the main groups of items with billions-of-USDimports from the EU. They saw respective import turnover of 4.1 billion USD,3.1 billion USD, and 1.75 billion USD last year, according to the GeneralDepartment of Vietnam Customs.
The importation of meat anddairy products is also expected to increase strongly in the time ahead thanksto the EVFTA.
The Ministry of Industry andTrade said under the deal, Vietnam eliminated import duties on 48.5 percent of thetariff lines, equivalent to 64.5 percent of the EU’s exports to the country, assoon as the agreement took effect.
After that, 91.8 percent ofthe tariff lines, equivalent to 97.1 percent of the bloc’s exports, will havetheir import duties removed in seven years. For the remaining 1.7 percent ofthe tariff lines, Vietnam will gradually lift duties in more than 10 years orapply the tariff-rate quota regime under the World Trade Organisation (WTO)commitments.
At present, agricultural andaquatic products, consumer goods, processed food, milk, and dairy products fromthe EU have yet to benefit from zero-percent tariffs in Vietnam. As livestockproducts 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 theEU’s frozen pork, other types of pork, and chicken will be slashed to zeropercent 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 nextthree years.
Vietnam currently ranks 17th amongtrading partners of and 11th among exporters to the EU./.
VNA
