Illustrative image (Photo: VNA) Hanoi (VNA) - Japanese daily Nihon Keizai ran an article on May20 saying that the EU-Vietnam Free Trade Agreement (EVFTA), to be ratified by Vietnam’slegislature shortly, will benefit not only the two signatories but also businessesfrom other countries.
It noted that the two will eliminate 99 percent of import tariffs withina decade, which will help Vietnam increase its exports to the bloc, whichaccounts for some 15 percent of the country's total. Japanese enterprises working inVietnam are also expected to benefit from the deal.
Asthe world third-largest apparel exporter behind China and Bangladesh, the space for Vietnamto bolster its garment exports remains huge. Several Japanese companies areproducing apparel in Vietnam, notably Fast Retail - the owner of the well-knownUniqlo brand - and also manufacturing auto spare parts and machinery for exportto Europe. The EVFTA will therefore help them expand production and enterEurope more easily.
Conversely,the EU ships aircraft and automobiles to Vietnam. With a population of around 97million, the third-largest in Southeast Asia, and with an average income percapita of about 3,500 USD each year, Vietnam is forecast to see growingdomestic consumption.
As the first country in Southeast Asia to normalise economic activitiesfollowing the COVID-19 pandemic, the EVFTA is expected to boost Vietnam’sexports in the near future, the paper wrote./.
