EVFTA helps compensate for pandemic-caused economic downturn: experts

The implementation of the EU - Vietnam Free Trade Agreement (EVFTA) has greatly helped make up for a downturn in the economy caused by the COVID-19 pandemic, experts said at a workshop in Hanoi on February 25.

Friday, February 25, 2022 20:40

EVFTA helps compensate for pandemic-caused economic downturn: experts ảnh 1

Workers handle garment for export to the EU at a factory in Thai Nguyen province (Photo: VNA)

Hanoi (VNA) – Theimplementation of the EU - Vietnam Free Trade Agreement (EVFTA) has greatlyhelped make up for a downturn in the economy caused by the COVID-19 pandemic,experts said at a workshop in Hanoi on February 25.

Nguyen Thi Thu Trang, Director of the Centrefor WTO and International Trade at the Vietnam Chamber of Commerce and Industry(VCCI), said since the EVFTA took effect on August 1, 2020, trade betweenVietnam and the EU has posted impressive growth.

Despite numerous pandemic-triggereddifficulties, Vietnam’s exports to the EU still hit 40.06 billion USD andimports 16.89 billion USD last year, respectively rising 14.1 percent and 15.3percent from 2020.

After more than one year of the EVFTAenforcement, more businesses have grasped and made use of preferential tariffsunder this deal. From the date it came into force to the end of 2020, the EUR.1certificate of origin was used for 2.35 billion USD in exports while 15.1percent of the shipments to the EU benefited from preferential tariffs. The respectivefigures stood at 5.15 billion USD and 22.5 percent in the first seven months of2021, Trang noted.

Dr Le Dang Doanh, an economic expert, describedthe EVFTA signing as a demonstration of Vietnam’s success in diversifying itsexternal economic relations to avoid overdependence on a single market or asingle source of supply and reduce risks for the economy.

The Vietnamese and EU economies are complementaryto each other, so the EVFTA implementation benefits both sides, he said,elaborating that Vietnam can import the products it is unable to make from the EU,which in turn can import the commodities Vietnam has strength in such as appareland agricultural products.

The agreement also helps facilitateinstitutional reform in Vietnam, he added.

EVFTA helps compensate for pandemic-caused economic downturn: experts ảnh 2

Illustrative image (Photo: VNA)

Trade experts held that amid thepandemic’s adverse impacts on the entire trade and investment activities in theworld, including Vietnam, the EVFTA enforcement holds great significance as ithelps compensate for a downturn in the economy, diversify market opportunities,and create momentum for post-pandemic growth.

This is also a chance for enterprisesto engage in new supply chains replacing the traditional ones that arecurrently interrupted or stagnant due to COVID-19, they added.

However, they also pointed out thatbecause of limited capacity, Vietnamese businesses still face certain problemsin utilising preferential tariffs.

To further grasp opportunities, Trangunderlined the need to improve domestic firms’ capacity, recommendingenterprises be more proactive in all trading activities.

In addition, authorities also need toprovide necessary assistance in terms of market information, trade promotion,and business climate improvement, she added./.

VNA

#EU - Vietnam Free Trade Agreement #EVFTA #COVID-19 #VCCI #Vietnam’s exports to the EU #preferential tariffs #imports from the EU #updated Vietnam news #Vietnamplus #Vietnam News Agency Vietnam European Union

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