Ha Duy Tung, Vice Director of the Ministry of Finance’s International Cooperation Department (Photo: VNA) Hanoi (VNA) – The EU-Vietnam Free Trade Agreement (EVFTA), which was freshly signedin Hanoi on June 30, is expected to bring about many opportunities for Vietnameseenterprises, especially those involved in exporting major products likeseafood, apparels, footwear, and farm produce.
According to HaDuy Tung, Vice Director of the Ministry of Finance’s International CooperationDepartment, right after the deal takes effect Vietnam will eliminate 48.5percent of tariff lines, equivalent to 64.5 percent of import revenue from theEU.
After 10 years,99 percent of the tariff lines will be abolished, or 99.8 percent of the importrevenue from the EU.
Regarding commitments onexport tariffs, Vietnam pledges to erase tariffs on goods exported to the EU ina 15-year roadmap. Export tariff commitments contained in the EVFTA arebasically similar to those that Vietnam has made in the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP), he said.
Tung noted that the EVFTA also includes commitments on customs, aiming tosimplify customs procedures and create favourable conditions for import-exportactivities through strengthening the exchange of information related to customsrequirements, modernizing and simplifying customs procedures, and ensuringtransparency of all customs requirements.
At the same time,commitments that Vietnam has made in the EFVTA in financial services, includinginsurance and securities services, are equivalent to those the country has madeto the World Trade Organisation and other FTAs it has signed, said Tung.
He noted that the EU iscurrently the fourth largest trade partner of Vietnam after China, the Republicof Korea, and the US. The EU is also the second biggest market of Vietnam with2018 revenue reaching 41.99 billion USD, up 9.5 percent year on year.
Once the EVFTAbecomes effective, the EU will remove about 85.6 percent of tariff lines onVietnamese goods, or 70.3 percent of Vietnam’s export revenue to the EU. Afterseven years, the lifted tariffs will be 99.2 percent, or 99.7 percent ofVietnam’s export turnover.
Particularly,tropical agricultural products, which are strengths of Vietnam, are not subjectto the EU’s huge protection. Therefore, Vietnam will enjoy chances to increasethe export of these products to the market.
On the otherhand, many domestic sectors will face fiercer competition pressures, includingautomobile, pharmaceuticals, and breeding, Tung said.
Vietnam’s aquatic products, though enjoying lower import tariffs, will have tomeet the EU’s requirements on food safety, he added.-VNA
VNA
