The seminar is held by the Vietnam Trade and Industry Review in Hanoi on October 6 (Photo: VietnamPlus) Hanoi (VNA) – In order to make full use of advantages from the EU-Vietnam Free Trade Agreement (EVFTA), businesses should focus on meeting technical standards and certificates of origin for export products, advised experts at a seminar in Hanoi on October 6.
After three years of implementation, the EVFTA has benefited businesses on both sides of the agreement. For Vietnam, domestic enterprises have not only increased their exports but also strengthened imports from the EU. The imports include machinery, equipment, and materials. Vietnam also gained production solutions, helping the Southeast Asian nation engage more deeply into the global production chain.
So far, the EU has become one of leading trade partners of Vietnam and the country’s third largest export market and fifth biggest importer. Last year, two-way trade hit 62.24 billion USD, up 9.2% year on year, accounting for 8.5% of Vietnam’s total import-export revenue.
For the coffee sector alone, the EU consumed 40% of the total exported volume of Vietnamese coffee in the year.
Statistics from the General Department of Vietnam Customs said that in 2022, Vietnam shipped nearly 1.8 million tonnes of coffee to the world worth over 4 billion USD, a rise of 13.8% in volume and 32% in value. Of the total, 689,049 tonnes were exported to the EU with a value of nearly 1.5 billion USD.
Many enterprises have made systematic investment to successfully enter choosy markets (Photo: VietnamPlus) Phan Minh Thong, Chairman of the Board of Directors of Phuc Sinh Group said that along with benefits, the agreement also brings about fiercer competition. EU companies investing in Vietnam can take advantage of the reduced tariffs under the EVFTA when exporting from Vietnam to Europe.
However, he said that this is a motivation for Vietnamese firms to renovate themselves to be able to compete in an open market.
Ngo Chung Khanh, deputy head of the Multilateral Trade Policy Department at the Ministry of Industry and Trade (MoIT), said that thanks to the EVFTA, Vietnamese have enjoyed a sharp cut in tax rates in the European market, which opens up new opportunities for both Vietnam and the EU.
He highlighted the importance of connecting Vietnamese firms with foreign partners - a significant task outlined in the Government's plan to carry out new-generation FTAs. This task is also reflected in the plans of various ministries, sector and localities.
However, to enable Vietnamese businesses to connect with their peers in the EU and make the most of the opportunities provided by the EVFTA, the official said that they need to pay greater attention to technical standards, origin certification, intellectual property, labour and environment, and sustainable development.
To enable Vietnamese businesses to connect with their peers in the EU and make the most of the opportunities provided by the EVFTA, they need to pay greater attention to technical standards (Photo: VietnamPlus) He said that next week, the MoIT will chair a conference involving leaders of the departments of industry and trade nationwide to review connections between domestic enterprises and foreign partners and EU businesses in particular. This will enable localities to learn from each other's best practices.
According to him, leveraging European resources, raw materials, and technology to produce higher-quality goods and joining more deeply in the global supply chain is a significant expectation of the Vietnamese firms as the EVFTA enters a new phase of implementation. Achieving this requires collaboration from the State management agencies, industry associations, and especially appropriate policies./.
