Illustrative photo. (Source: VNA)Hanoi (VNA) - Having recognised the advantagesfor exports created by the EU-Vietnam Free Trade Agreement (EVFTA), Hanoi has designeda number of measures to make full use of the opportunities it brings about.
Addressing an online conference on implementing a planto bring the EVFTA to life, a representative from the Hanoi People’s Committee notedthat as many as 23 of the 27 EU member countries have invested in Hanoi, with totalinvestment now standing at 4.16 billion USD, or nearly 10 percent of the total of46 billion USD in foreign investment in the city.
EU enterprises primarily invest in support industries andhigh-tech production.
Meanwhile, the EU market receives 12-15 percent of Hanoi’sexport products each year, mostly footwear, fruit and vegetables, and electronics.
In the first seven months of this year, Hanoi’s exported998 million USD worth of goods to the EU, down 2.5 percent over the same periodlast year due to the impact of the COVID-19 pandemic.
Economists said that the 500-million-strong EU market,with annual GDP of 18 trillion USD, holds substantial promise for Vietnam ingeneral and Hanoi in particular. The EU is also an important trade partner of Vietnam,with two-way trade standing at 55.8 billion USD in 2018.
Considered the “most modern, comprehensive,and ambitious agreement ever concluded between the EU and a developing country”,the EVFTA will abolish almost all tariffs between the two sides over the nextten years.
With commitments to open up markets and remove nearly 100percent of import taxes, the EVFTA is expected to bring about majoropportunities for businesses in Vietnam and Hanoi. Experts have forecast thatrevenue from exports to the bloc will rise about 42 percent by 2025 and nearly 45percent by 2030.
According to a representative from the Ministry of Industryand Trade, Vietnam and the EU can supplement each other in goods supply and manyVietnamese products are already held in high regard in the EU market.
Based on the analysis, Hanoi has determined that the implementationof the EVFTA will promote growth in trade between Vietnam’s capital and the EU.
The EU, however, is quite a fastidious market and thisrequires exporters to ensure product quality and meet strict requirements on productionprocesses and the use of labour. Along with quality, economists pointed out thatEU consumers pay great attention to businesses’ social responsibility. Factorslike not using child labour or regularly hosting charity activities and supportingthe local community can contribute to enhancing the value of products in the market.
In order to conquer any market, Hanoi will need to increaseits communications efforts and support enterprises by providing them with guidelineson standards for the entire production process, therefore helping localcompanies improve their competitiveness and access more export opportunities.
The capital will also continue to promote administrativereform and engage in investment promotion programmes calling for EU investors, especiallyin pharmaceuticals and sectors seeking high technology.
Hanoi has recently given support to small and medium-sizedenterprises and start-ups to strengthen connectivity in building a start-up ecologyand to create partnerships with the capital cities of certain EU member countries.
The city has proposed that the Prime Minister issue a planto implement the EVFTA and direct ministries, sectors, and agencies to provide guidelinesto cities and provinces, including Hanoi, to effectively bring the agreement tolife, thus increasing export opportunities for businesses in Hanoi and Vietnamas a whole.
Over the years, under the Prime Minister’s direction, thecapital has implemented plans to promote investment ties and partnerships with EUmember countries, especially localities with which it shares a traditional relationship./.
VNA
