German media laud opportunities from EVFTA

 

Berlin (VNA) – The European Union – Vietnam Free Trade Agreement (EVFTA), recently ratified by the Vietnamese legislature, will not only help Vietnam boost production and exports but also enable European firms to increase their presence in this emerging Asian nation, said the German media.

The DPA newswire said once the deal takes effect in early August, 99 percent of all tariffs on both sides will be cut after seven years.

The EVFTA will allow Vietnam, which is already one of the world’s fastest-growing economies, to increase its export turnover to the EU by about 20 percent by 2020 and 44 percent by 2030, it said.

Meanwhile, the DW said the FTA with Vietnam is the EU's most ambitious trade deal with a developing country. The deal is set to give the Southeast Asian country a much-needed economic boost amid the coronavirus pandemic.

In ratifying the deal, Vietnam committed to implementing sustainable development standards, protecting labour rights and to uphold its pledges to tackle climate change under the Paris Accord.

The Finanznachrichten cited Vice President of the Federation of German Wholesale, Foreign Trade and Services Ines Kitzing as saying that the deal not only creates an economic driving force but also offer a clear answer to protectionism under the disguise of COVID-19 crisis.

General Manager of the Federal Association of the German Footwear and Leather Goods Industry Manfred Junkert, for his part, said opportunities for German producers in Vietnam rely on how Vietnam overcomes the pandemic as well as financial capability of domestic enterprises.

He also hailed Vietnam as a promising market for German leather and footwear. Last year, Vietnam was the second largest supplier of footwear to Germany ./.