Vietnam-EAEU trade pact opens opportunities and challenges
The Vietnam-Eurasian Economic Union Free Trade Agreement signed on
May 29 is forecast to offer both ample opportunities and tough
challenges to Vietnamese businesses.
The Vietnam-Eurasian Economic Union Free Trade Agreement signed on
May 29 is forecast to offer both ample opportunities and tough
challenges to Vietnamese businesses.
According to the agreement, Vietnam will have great opportunities to sell strong products to the Eurasian Economic Union (EAEU), encompassing Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. Aquatic products, garments and leather will be the key beneficiaries of the deal as they enjoy a zero percent tariff.
Dang Phuong Dung, Vice President and Secretary General of the Vietnam Textile Association (VITAS) felt upbeat about Vietnamese textile and garments’ market share in the Union, predicting that two-way garment trade will grow by 50 percent the first year of the agreement’s implementation and 20 percent over the next five years.
Vietnam will be the Union’s fourth provider of apparel from the current eighth place, she said.
Thanks to the signing of free trade deals between Vietnam and the Republic of Korea, the EAEU and the EU, a wave of foreign capital has flown into the garment and textile sector from the outset of this year, broadening opportunities for Vietnamese products.
However, Dung said that enterprises need to make efforts to increase their competitiveness, a move to leverage potential spurred by the signed agreements.
On the contrary, the deal will bring major competition to the Vietnamese steel sector as Russian steel has low production costs and high quality, said Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association.
Each year, Russia produces 70 million tonnes of steel using advanced technology. Each tonne of steel billet produced in Russia costs 50 kilowatt hours of power, while Vietnam consumes 10 times higher to produce the same.
Furthermore, most Vietnamese steel enterprises are small-scale operations and lack advanced technology.
Sua suggested that Vietnamese enterprises need to expand their knowledge about international trade to protect their production, and the Government should deploy legal trade tools to protect and support domestic steel production.
Meanwhile, a representative from the association said steel businesses should increase their competitiveness capacity for effective production and fight trade fraud.-VNA
According to the agreement, Vietnam will have great opportunities to sell strong products to the Eurasian Economic Union (EAEU), encompassing Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. Aquatic products, garments and leather will be the key beneficiaries of the deal as they enjoy a zero percent tariff.
Dang Phuong Dung, Vice President and Secretary General of the Vietnam Textile Association (VITAS) felt upbeat about Vietnamese textile and garments’ market share in the Union, predicting that two-way garment trade will grow by 50 percent the first year of the agreement’s implementation and 20 percent over the next five years.
Vietnam will be the Union’s fourth provider of apparel from the current eighth place, she said.
Thanks to the signing of free trade deals between Vietnam and the Republic of Korea, the EAEU and the EU, a wave of foreign capital has flown into the garment and textile sector from the outset of this year, broadening opportunities for Vietnamese products.
However, Dung said that enterprises need to make efforts to increase their competitiveness, a move to leverage potential spurred by the signed agreements.
On the contrary, the deal will bring major competition to the Vietnamese steel sector as Russian steel has low production costs and high quality, said Nguyen Van Sua, Vice Chairman of the Vietnam Steel Association.
Each year, Russia produces 70 million tonnes of steel using advanced technology. Each tonne of steel billet produced in Russia costs 50 kilowatt hours of power, while Vietnam consumes 10 times higher to produce the same.
Furthermore, most Vietnamese steel enterprises are small-scale operations and lack advanced technology.
Sua suggested that Vietnamese enterprises need to expand their knowledge about international trade to protect their production, and the Government should deploy legal trade tools to protect and support domestic steel production.
Meanwhile, a representative from the association said steel businesses should increase their competitiveness capacity for effective production and fight trade fraud.-VNA
You should also see
Airports to offer 9,000 domestic flights during upcoming holidays
Vietnamese airlines are expected to operate 9,000 flights on domestic routes to meet the travel demand during the upcoming National Reunification Day (April 30) and May Day (May 1) holidays, according to the Airports Corporation of Vietnam (ACV).
See more
Business
Long An, Dong Nai introduce strengths in RoK
The southern province of Long An and Dong Nai introduced their investment climate as well as socio-economic development orientations at an investment promotion conference held in the Republic of Korea (RoK) on April 26.
Business
Vietnam makes initial efforts to approach creative industries: CIEM
Vietnam has made initial efforts to approach creative industries and services, particularly a policy framework related to creative economy development, according to a new report released by the Central Institute for Economic Management (CIEM).
Business
HCM City wants to become major partner, customer of NVIDIA: Official
Chairman of the People’s Committee of Ho Chi Minh City Phan Van Mai has told the Vice President of Worldwide AI Initiative at NVIDIA, Keith Strier that the city wants to become a major and good partner and customer of the firm in Vietnam.
Business
Revenue on top five e-commerce platforms jumps 79%
The e-commerce market of Vietnam was robust in the first quarter of this year with total revenue of the top five platforms, including Shopee, TikTok Shop, Lazada, Tiki and Sendo, reaching more than 71 trillion VND (2.79 billion USD), an increase of 79% over the same period last year, according to a recent report by Metric.
Business
Vietnam needs drastic reforms to create firm ground for economic growth: experts
Drastic institutional reforms are needed to create firm ground for economic growth in the context that persistent challenges, both external and internal, still cloud the growth prospect, experts have said.
