Illustrative image (Photo: VNA) Brussels (VNA) – Vietnamese exporters have beenadvised to make preparations so as to stay ready for orders from Europe whenthe EU-Vietnam Free Trade Agreement (EVFTA) takes effect and the COVID-19pandemic is stamped out.
Trade between Vietnam and the EU usuallydeclines in the first three months of a year as there are many holidays duringthe period.
This year, a number of firms have also limitedexports and imports in the three months to wait for preferential tariffs underthe EVFTA, which was ratified by the European Parliament (EP) in February, whenthe deal comes into force.
Besides, the novel coronavirus SARS-CoV-2outbreak has also forced most of European firms to suspend imports, suggestinggloomier prospects of bilateral trade growth in the first and second quartersof 2020.
The EU has not issued any bans on imports fromVietnam, but its businesses have reduced imports by themselves asCOVID-19-driven travel restrictions have discouraged customers from shopping.
The EVFTA is expected to become effective inJuly this year if the Vietnamese National Assembly ratifies it in the Maysession. At that time, bilateral trade is likely to enjoy improvement.
Vietnam’s trade office in the EU recommendedVietnamese exporters ensure production capacity and stockpile goods so thatwhen there are favourable conditions such as the pandemic is over and the EVFTAbecomes effective, they will be ready to receive orders from Europe.
A representative of a Vietnamese firm that haspartners in European countries like Belgium, the Netherlands, Italy, France andGermany said orders from partners have been suspended while the development ofnew designs and marketing activities of the company have also been halted dueto COVID-19.
The representative noted European partners arevery interested in textile-garment products of Vietnam, especially when theEVFTA takes effect. It believes that bilateral trading activities will recoversoon when the epidemic is pushed back.
To not miss opportunities, textile-garmentproducers should work to keep existing importers and actively cooperate withEuropean partners in cancelling or aligning orders with the current market. Ifthey can do so, they will more trust from the partners./.
VNA
