Workers at a timber export company in Vietnam (Illustrative image. Source: VNA) Hanoi (VNA) – The tax incentivemechanism of the EU-Vietnam Free Trade Agreement (EVFTA) will bring greatbenefits to Vietnamese industries and products, according to Minister ofIndustry and Trade Tran Tuan Anh.
He talked about the official conclusion of legalreview process for the EVFTA and agreement on the bilateral investmentprotection deal in an interview granted to Vietnam News Agency in Hanoi on June28 after his recent working trip to Belgium.
The minister said at a working session with EUCommissioner for Trade Cecilia Malmstrom in Brussels on June 25, the two sidesagreed to divide contents related to investment protection and investor-statedispute settlement (ISDS) into a separate deal called the Investment ProtectionAgreement (IPA).
The EU and Vietnam have completed all contentsin preparation for the signing and ratification of the EVFTA and IPA, he said,adding that the legal review process for the two deals has been finalised.
Vietnam is striving to complete the final stagesto reach the signing of the EVFTA at the end of this year, he said.
He noted that up to 99 percent of EU tariffswill be removed for Vietnamese products.
Farm produce, seafood, sugar, honey, processedagricultural products, timber products, garment-textile and automobile industryare expected to enjoy preferential tariffs from the deal.
The EVFTA is hoped to boost Vietnam’s exports toEU, which will rise by 4-6 percent.
A central benefit is that the structure ofexport and economy of Vietnam and EU is supplementary, not directlycompetitive, so businesses can gain win-win cooperation.
Sectors like processing and manufacturing,automobiles, information technology, agriculture, livestock and processed foodshould also consider competitive pressure.
Increasing competitiveness and building valuechains with partners will help enterprises develop and bring investmentefficiency.
The EU is a leading trade and investment partnerof Vietnam with nearly 22 billion USD.
The EU is likely to invest in Vietnam in fieldssuch as services, finance, automobiles, processing, manufacturing, informationtechnology, high technology and processed farm produce. These are also fieldsthat Vietnam needs investment and development.
Minister Anh advised businesses to optimiseopportunities and incentives from the EVFTA. He also underlined the role of theState and Government to help firms gain the most benefits from the pact.
He advised small-and-medium-sized enterprises(SMEs) to study the market and adopt solutions such as creating high-qualityand eye-catching products and meeting the requirements on the origin ofproducts, technical and safety standards.-VNA
VNA
