Indonesia seeks EU trade deal to compete with Vietnam footwear

Chief Economic Affairs Minister Airlangga (Photo: Jakartaglobe Screenshot)

Jakarta (VNA) – Indonesia wants to secure a trade deal with the European Union (EU) in hopes that it can compete with Vietnam, particularly in the area of footwear export, according to Chief Economic Affairs Minister Airlangga.

At the Investor Daily Roundtable Conference in Cirebon, Indonesia, on January 24, Airlangga said the EU – Vietnam Free Trade Agreement (EVFTA) seeks to eliminate 99% of tariffs, paving the way for more Vietnamese footwear products to break into the European market.

Meanwhile, an FTA between Indonesia and the EU is under negotiation, making Indonesian goods face 20% import duties, Airlangga added.

Footwear is among Vietnam’s key exports to the EU. The Observatory of Economic Complexity (OEC) database puts Germany and Belgium in top five Vietnamese footwear export destinations in 2021.

The OEC said Indonesia’s footwear shipment was only a fraction of Vietnam, with the export revenue of 5.8 billion USD as compared to 19.9 billion USD of its ASEAN peer.

Indonesia has been negotiating a comprehensive economic partnership agreement (CEPA) with the EU since 2016. Both sides have concluded the 16th round of talks and will hold the next meeting in February./.

VNA