Vietnamese exporters are not making use of Foreign Trade Agreement(FTA) opportunities as many of them do not know how to claim prioritytariffs from FTAs.
Bui Kim Thuy, Deputy Head of the Ministry ofIndustry and Trade's Foreign Trade Agency, said that Trade in GoodsAgreements, which reduce or eliminate tariffs to zero percent onschedule, was the most important component of an FTA.
Thuy spoke last week at a forum held by Vietnam Plastics Association in collaboration with Enterprising Fairs India Pvt Ltd.
Theimportance of the rule of origin (ROO) is to identify whether importgoods can be eligible for tariff concessions, to keep a rational balancebetween "trade facilitation" and "fraudulence prevention", and to ratethe use of FTA benefits from each of the FTA parties, she said.
"To get the ideal tariff rate from FTA, export products have to satisfy ROO prescribed in a specific FTA," Thuy said.
Tomeet the preferential ROO, exporters will be issued a preferential C/Oand then will enjoy preferential tariff treatment. This would helpstimulate production and exports-imports from FTA countries.
Thuysaid that for non-WTO members, the tariff rates on plastics was 150percent, compared to WTO members' tariff of an average of 13.5 percent.
However, for FTA members, the tariff rate on plastics was an average of 0-5 percent.
Vietnamis part of 15 FTAs, including 10 signed FTAs and five which areundergoing negotiation (RCEP; VN-EU; VN-EFTA; TPP and ASEAN-Hong Kong).
HoDuc Lam, Chairman of the Vietnam Plastics Association, said that sincethe 1970s the Vietnamese plastics industry had grown steadily at twodigits, with an average annual growth rate of over 12 percent.
The plastic sector's revenue reached 9.053 billion USD, an increase of 8.3 percent over 2013 and 7.6 percent in 2012.
Forthe first six months, the sector had revenue of 4.2 billion USD, anincrease of 10.3 percent compared to the same period last year.
Rawmaterial imports last year were 3.45 million tonnes worth a total of6.32 billion USD, an increase of 9.4 percent in volume and 10.6 per yearin value against 2013.
Polyethylene and polypropylene wereimported mostly from Saudi Arabia, the Republic of Korea, Taiwan(China), Thailand, Singapore, Japan and Malaysia, accounting for 55percent of total import volume.
In the last 10 years, plasticpackaging has been one of the key export items of the plastics sector,with an annual growth rate of 7.8 percent per year. B. Swaminathan,Managing Director of Enterprising Fairs India Pvt. Ltd, said Vietnam'splastics market was one of the fastest-growing markets in SoutheastAsia.
At 4.2 million tonnes per annum, it is the second largest market after Thailand in Southeast Asia.
Atthe forum, Vietnam Plastics Association called on domestic enterprisesto participate in the first edition of three-in-one exhibition: PlasticsVietnam, RUBEXPO Vietnam and COMPACK Vietnam, which will be held onJuly 23-25 at Saigon Exhibition Centre.
The exhibition,co-organised by VPA and Vietnam Rubber Association, will include morethan 100 booths from India, China, Taiwan, Singapore, the Republic ofKorea, Iran, Malaysia and Italy, showcasing the latest products andtechnologies in plastics processing.-VNA
Bui Kim Thuy, Deputy Head of the Ministry ofIndustry and Trade's Foreign Trade Agency, said that Trade in GoodsAgreements, which reduce or eliminate tariffs to zero percent onschedule, was the most important component of an FTA.
Thuy spoke last week at a forum held by Vietnam Plastics Association in collaboration with Enterprising Fairs India Pvt Ltd.
Theimportance of the rule of origin (ROO) is to identify whether importgoods can be eligible for tariff concessions, to keep a rational balancebetween "trade facilitation" and "fraudulence prevention", and to ratethe use of FTA benefits from each of the FTA parties, she said.
"To get the ideal tariff rate from FTA, export products have to satisfy ROO prescribed in a specific FTA," Thuy said.
Tomeet the preferential ROO, exporters will be issued a preferential C/Oand then will enjoy preferential tariff treatment. This would helpstimulate production and exports-imports from FTA countries.
Thuysaid that for non-WTO members, the tariff rates on plastics was 150percent, compared to WTO members' tariff of an average of 13.5 percent.
However, for FTA members, the tariff rate on plastics was an average of 0-5 percent.
Vietnamis part of 15 FTAs, including 10 signed FTAs and five which areundergoing negotiation (RCEP; VN-EU; VN-EFTA; TPP and ASEAN-Hong Kong).
HoDuc Lam, Chairman of the Vietnam Plastics Association, said that sincethe 1970s the Vietnamese plastics industry had grown steadily at twodigits, with an average annual growth rate of over 12 percent.
The plastic sector's revenue reached 9.053 billion USD, an increase of 8.3 percent over 2013 and 7.6 percent in 2012.
Forthe first six months, the sector had revenue of 4.2 billion USD, anincrease of 10.3 percent compared to the same period last year.
Rawmaterial imports last year were 3.45 million tonnes worth a total of6.32 billion USD, an increase of 9.4 percent in volume and 10.6 per yearin value against 2013.
Polyethylene and polypropylene wereimported mostly from Saudi Arabia, the Republic of Korea, Taiwan(China), Thailand, Singapore, Japan and Malaysia, accounting for 55percent of total import volume.
In the last 10 years, plasticpackaging has been one of the key export items of the plastics sector,with an annual growth rate of 7.8 percent per year. B. Swaminathan,Managing Director of Enterprising Fairs India Pvt. Ltd, said Vietnam'splastics market was one of the fastest-growing markets in SoutheastAsia.
At 4.2 million tonnes per annum, it is the second largest market after Thailand in Southeast Asia.
Atthe forum, Vietnam Plastics Association called on domestic enterprisesto participate in the first edition of three-in-one exhibition: PlasticsVietnam, RUBEXPO Vietnam and COMPACK Vietnam, which will be held onJuly 23-25 at Saigon Exhibition Centre.
The exhibition,co-organised by VPA and Vietnam Rubber Association, will include morethan 100 booths from India, China, Taiwan, Singapore, the Republic ofKorea, Iran, Malaysia and Italy, showcasing the latest products andtechnologies in plastics processing.-VNA
