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Vietnam hoped to become EU’s largest trade partner in ASEAN

Vietnam is expected to become the EU’s largest trade partner in the Association of Southeast Asian Nations (ASEAN) once the EU-Vietnam Free Trade Agreement (EVFTA) comes into effect in 2018, according to Minister of Industry and Trade Tran Tuan Anh.
Vietnam hoped to become EU’s largest trade partner in ASEAN ảnh 1Dragon fruits are packaged at the Cat Tuong agricultural products produciton and processing Co. Ltd in Tien Giang province (Photo: VNA)

Hanoi (VNA) – Vietnam is expectedto become the EU’s largest trade partner in the Association of Southeast AsianNations (ASEAN) once the EU-Vietnam Free Trade Agreement (EVFTA) comes intoeffect in 2018, according to Minister of Industry and Trade Tran Tuan Anh.

The minister said Vietnam could also becomethe most promising destination in Southeast Asia for European businesses.

According to the Ministry of Industry andTrade (MoIT), the country may serve as an entry point for EU trade to ASEAN.

Once effective, the EVFTA will encourageinvestment from the EU into Vietnam and create opportunities for the two sidesto access each other’s market, the ministry said.

The EU will eliminate about 85.6 percent oftax lines on Vietnam’s exports, with the rate increasing to 99 percent sevenyears later.

Meanwhile, Vietnam will liberalise 65percent of import duties on EU exports. In another 10 years, about 99.8 percentof EU goods exported to Vietnam will enjoy a zero percent tax rate.

Statistics released by the MoIT show thatthe Vietnam-EU trade grew by 8.93 percent in 2016 compared with the previousyear to reach 45.07 billion USD.

Bilateraltrade expanded by 16.2 percent year-on-year in the first five months of 2017.

Ofthe figure, Vietnam’s exports to the EU rose 4.2 percent, mostly apparel,footwear, agro-forestry-aquatic products and computers, while its imports fromthe EU rose 14 percent, including machinery, equipment, pharmaceuticals anddairy products.

Thecountry’s major importers were Germany, the UK, France, Italy, the Netherlandsand Spain.

With a population of more than 500 million,the EU is an attractive market for Vietnamese products like garments,garments-textiles, seafood and coffee.

With the two sides’ commitment to opening upthe market, two-way trade revenue is hoped to hit about 100 billion USDannually.

However, Vietnamese businesses are expectedto face fierce competition, forcing them to improve their operations.

At the same time, the Vietnamese Government plansto fast-track institutional reform and complete the legal framework to catch upwith the development pace and requirements of both domestic and globaleconomies, the ministry said.-VNA
VNA
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