WB: EVFTA could lift Vietnam’s exports by 12 percent by 2030

Illustrative image (Photo: VNA)

Hanoi (VNA) - The World Bank (WB) has predicted that the EU-VietnamFree Trade Agreement (EVFTA) could help Vietnam’s GDP and exports grow 2.4 percentand 12 percent, respectively, by 2030, the Ministry of Industry and Trade(MoIT) has reported.

The deal is also expected to bring 100,000 to 800,000 people out ofpoverty.

The WB believes Vietnam could enjoy greater benefits from joining the EVFTAand the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)if it conducts overall economic and institutional reform to comply with their conditions.

WB Country Director in Vietnam Ousmane Dione said Vietnam could optimisethe deals and reap unprecedented benefits.

Requirements on the rules of origin is one of the challenges Vietnamneeds to overcome, he said, as a number of Made-in-Vietnam products still relyon imported materials - 62 percent in electronics and 53 percent in automobiles.

He suggested that Vietnam improve links between domestic suppliers andforeign enterprises that lead global supply chains.

Vietnam will become a destination for EU and global investors because ofthe EVFTA, he added. When FDI increases, however, the number of tradecomplaints will also pile up.

He therefore advised Vietnam to launch a systematic mechanism to dealwith complaints between the State and investors. At the same time, priorityshould be given to key currency earners post-COVID-19.

MoIT will partner with the Ministry of Science and Technology this year tosupplement and amend the revised Law on Intellectual Property 2009 and reviewdecrees relating to the EVFTA.

From 2021-2025, it will work with the Ministry of Finance to supplementand amend the revised Law on Insurance Business 2010.

In the near future, it will popularise the complaint settlementmechanism in the EVFTA and other FTAs to which Vietnam is a member./.

VNA