Vietnamese firms should step up efforts to boost exports to the EU despite facing several difficulties, a senior official said on July 3 (Photo: VNA) Hanoi (VNA) - Vietnamesefirms should step up efforts to boost exports to the European Union (EU)despite facing several difficulties, a senior official has said.
Dang Hoang Hai, Director of the European Market Department underthe Ministry of Industry and Trade, was speaking to the Vietnam News Agency on theeven of Prime Minister Nguyen Xuan Phuc’s visit to Germany and Holland andparticipation to G20 Meeting (July 5-7).
He said EU was a large and potential market with 28 membercountries and a total population of 500 million people. For several years, Vietnamhas enjoyed a trade surplus with the EU market, he noted.
In 2016, Vietnam exported goods worth 34 billion USD to the EU, 12times the value in 2000, and paid 11 billion USD for imports from the bloc.
Hai noted that Vietnam can enjoy benefits from the GeneralisedSystem of Preferences (GSP) for the 2017-2019 period. Many countries exportingto the EU do not have this preference.
When the Vietnam-EU Free Trade Agreement (EVFTA) comes intoeffect, Vietnam would have experienced 20 years of participating in the processof regional and international economic integration. Vietnamese enterprises haveactively competed with rivals from other countries, he said.
Furthermore, a characteristic of the Vietnam-EU import-exportstructure is that it is mutually complementary and less confrontational thandirect competition, Hai said.
[Vietnam looks to put rice on Europe’s plate]
Commitments under the EVFTA on opening each other’s markets willbe an important impetus for boosting Vietnam-EU trade relations, as also anopportunity to further expand exports, especially of key items like textiles,footwear, agro-forestry and wooden products.
Meanwhile, Hai said, it must not be forgotten that the EU is amarket with strict quality and safety standards that not many local firms canmeet.
Vietnam’s legal system and policies lack uniformity and stability,so local enterprises are at a disadvantage when it comes to internationaldisputes and lawsuits.
Hai said Vietnamese enterprises are also not fully conversantabout product origins, and with related rules in the FTA being very strict, thefirms will not be able to comply with them.
Therefore, businesses need to actively adjust their supply chain andinput materials to adhere to the rules of origin and enjoy preferential taxregimes under the EVFTA. These activities will also help them avoidinvestigations and other trade defense measures.
Local enterprises should actively reform and improve their abilityin all fields, and enhance product quality to face future challenges, Hai said.
To boost exports to the EU, the Ministry of Industry and Trade hasdirected its trade offices in the EU member countries and relevant agencies tomonitor market developments and identify solutions.
Hai also said that the ministry plans to encourage localenterprises directly joining the international distribution network.-VNA
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